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Punk Money has been designed to make borrowing and lending money between friends and family simple, fair and transparent - keeping your relationships intact.
Friends and family can be the most affordable and flexible source of finance for personal loans. But the awkwardness involved and the negative effect they can have on relationships push people towards more expensive banks, credit cards and high-cost lenders.
We are the solution - in just a few minutes, you and your friend or family member can create a loan and sign a legally binding contract.
Borrowing or lending money between people you know isn’t easy. You have to agree on the terms, keep up with the payments and rely on the trust you have. We take the hassle out of the loans, giving you your time back and keeping things more secure.
Here are some of the reasons you should use us:
-It takes the hassle out of lending to people you know
-We handle all the paperwork, creating you a legally binding contract
-Skip the long applications (no credit checks)
-Improves your credit score
It’s simple. Just enter your and the other parties' details into our loan builder, and then sign the loan contract on our platform. The loan agreement will then be sent to the other party to agree and sign.
Anyone who resides in the UK with a bank account can create a friend and family loan agreement with Punk Money - there are no credit checks to hold anyone back. These agreements are legally binding loan contracts for people over 18 years of age and may not be enforceable for people under the age of 18.
Punk Money wants to make borrowing and lending money between friends and family as affordable as possible and accessible for everyone.
Lenders and borrowers can set the rates for the their own loans, adding interest if they wish from 0% - 10% Apr on their loans.
We allow people to add interest to their loans in order to make lending to people you know easier and more beneficial to both parties.
For example, if you need to take money out of savings in order to lend it to someone, it would be nice if you weren't out of pocket by the time they paid you back and in times of inflation, it might be nice to keep up.
Additionally if you're asking to borrow money, it might be nice to offer to sweeten the deal by adding a little interest to make lending to you more attractive than keeping their money in low earning savings.
Punk Money is designed to help people set up fair and affordable loans with their Friends and Family. That's why we're keeping out fees as low as possible with a clear and simple pricing structure.
All loans are the same - it's a 1% arrangement fee and 50p a month connection fee for the term of the loan, plus Vat.
Nope. Whether you need a small cash top-up from £100 until payday or £100,000 for a house, you can use the platform to set up and manage your loan.
When lending your money to friends or family, there is always the risk you won’t be paid back. Lending on Punk Money keeps things as secure as possible with a legally binding contract that could help you recoup any losses.
Absolutely. Punk Money never touches any part of your loan. We just facilitate the contract. Money is transferred directly between the lender and the borrower's bank accounts. So, rest assured knowing your money is secure and safe.
The contracts created on Punk Money are legally binding for persons over 18 and can be enforced by the lender or borrower in the UK. Before signing the contracts, you should read over all the details and be clear on the agreement. If you want to enforce the contract, we recommend you seek legal advice first. In line with UK law, contracts may not be enforceable for people under the age of 18.
Adding interest on the loans is for the lender and borrower to agree. There is the option to add interest up to 10% on Punk Money to keep things fair for all during these times of rampant inflation.
It’s a common misconception that because friend and family loans are a personal arrangement, there won’t be any tax implications. However, if there’s interest involved, you’ll need to inform HMRC and fill out a self-assessment as it may be liable as taxable income.
Sometimes this happens, even if all the right steps have been taken. Signing a loan agreement does give you some options. Read through our blog on this here.
You should only lend your money if you’re in the financial position yourself to do so. The first question you need to ask yourself is whether you can afford to lend the amount someone is asking for. Would you be in a difficult situation if they couldn’t make their repayments? Are you left with enough money to cover emergencies or unexpected expenses that pop up? If the answer to these questions is no then you may want to consider if the loan is a wise idea. We have more information on lending to friends and family here.
The short answer is no. Lending by way of business is a Financially Regulated activity for which you must have appropriate authorisation. You cannot use Punk Money for this purpose. Any contracts created for money lending by way of business on Punk Money will be not be enforceable by law. If this is your required use of the platform please seek alternative means with the appropriate legal oversight.