Is there a maximum amount of money I can loan out to friends and family? Can I loan out R2 mil without having some kind of license? Someone told me that you can only ever loan out R500 000 at a time, being broken up into maximum of 100 loans. I have loaned out more than R500 000, so I need to know if I am in the wrong here and what I can do to fix it.
Technically the new credit act speaks of loaning any money requiring a license. However you most likely will not be fined at all, do you charge interest?
Dewaldsays: 18 April 2016 at 12:14
I don't have to charge interest, but if I must for tax purposes I will. I just want to know if I could get away with loaning out say R2 mil, R40 000 to 50 different individuals. If this will get me into trouble, what is the maximum amount of money I can loan out?
TaxTimsays: 18 April 2016 at 12:22
As the law is, if you are making loans of more than R1 even then you would need a license. It is not advisable to make 50 loans of R40 000. It would be better if you loaned out R2m in one go charging interest.
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