A verbal loan and an unprovable loan are almost the same thing
The Civil Code requires written form for a loan between individuals if the amount exceeds ten tax-free minimums, which is 170 hryvnias. In practice that's any loan. A receipt or another document confirms it.
If there's no written document, you can't bring witnesses to court: the law doesn't allow such a contract to be proven by witness testimony. The money was handed over, and there's zero evidence.
What's included
- Loan agreement or receipt depending on the situation.
- Full details of both parties from their passports.
- The amount in figures and words, the currency.
- A clear repayment date and what happens if it's missed.
- Security: a pledge or a guarantee, if the sum is large.
A receipt that works
A working receipt is four things. Both parties' full passport details. The amount in figures and in words. A clear repayment date. The borrower's signature, ideally written in their own hand.
There's a receipt template in the article lending to a friend: the kind of receipt that works in court.
Receipt or loan agreement
| Receipt | Loan agreement | |
|---|---|---|
| Who draws it up | The borrower | Both parties |
| For what amounts | Small, between acquaintances | Large, with interest, between companies |
| Security | Usually none | Pledge, guarantee, penalties |
| Notary | Not needed | Optional, I recommend it for large sums |
If they're already not paying back
You have three years from the repayment date to recover a debt through the courts. First it's worth sending a written demand. If there's no receipt but there's correspondence or a bank transfer, you still have a chance, and I'll help you assess it.
How it works
Your part: the parties' details and the amount. The rest of the arrows are mine.
Civil Code of Ukraine: Articles 1046–1053 (loan), Art. 1047 (form of loan agreement), Art. 218 (consequences of failing to observe written form), Art. 257 (limitation period), Art. 625 (liability for late payment of a monetary obligation).
Frequently asked questions about loans and receipts
How much does a loan agreement cost?
From €150. A receipt is simpler and cheaper.
Can a receipt be handwritten?
Yes, and that's even better. What matters is that it has all four elements.
Can I lend in a foreign currency?
The amount can be stated in a currency. How it will be repaid is set out separately.
What if there's no receipt?
We look for other written evidence: correspondence, a transfer, an acknowledgement of the debt. Each case has to be assessed separately.
Putting money into a friend's business? Then a loan may not be the best option; see shareholder agreement. A deposit on a flat is documented differently; that's on the deposit and preliminary agreement page.