FAQ

Yes. Private loans can be legally enforceable in Australia, provided there is a clear loan arrangement, repayment obligation and consideration. Written loan agreements significantly reduce dispute risk.

In some circumstances, yes. However, without a written agreement, evidentiary challenges increase. Courts may rely on bank records and communications to assess whether a loan existed.

Not necessarily. Legality depends on the nature of the loan, the parties involved, and whether the arrangement constitutes unconscionable or misleading conduct.

A guarantor’s liability depends on the terms of the guarantee. In many cases, guarantors may be directly liable for the borrower’s default.