Borrowing from people you know in Chad: tontines, IOUs and fraud
In Chad, lending between individuals relies mostly on family, tontines and community solidarity, with no known licensed crowdlending platform, so it pays to put amounts in writing and to stay wary of fake lenders active on social media.
The place of family support in Chad
In families in N'Djamena as in the villages of Logone or Ouaddaï, lending to a relative is often a social obligation. These interest-free advances pay for schooling, weddings or emergencies, but repayment terms are rarely set out precisely.
Tontines as rotating savings and credit
Tontines bring together colleagues, women traders at the central market or members of an association. Each member pays in a fixed sum and receives the pot in turn, which works like an interest-free loan for those who collect first.
Auction tontines and their hidden cost
In some tontines, the next turn goes to whoever agrees to leave the largest share to the other members. This system creates a real borrowing cost, sometimes a high one, which should be compared with what a COBAC-licensed microfinance institution offers.
No known licensed peer-to-peer lending platform
As far as we know, no person-to-person lending website is licensed in Chad to match lenders with borrowers. Collecting funds from the public and lending on a regular basis are activities reserved for institutions supervised by COBAC.
A written IOU stated in CFA francs
A dated document signed by both parties, giving the amount in CFA francs, the due date and the repayment terms, limits disputes. Having the signatures certified at the town hall or drawing up a notarial deed strengthens its value in court.
Family loans sent by Airtel Money and Moov Money
Loans between relatives increasingly travel through mobile money. The Airtel Money or Moov Money transaction history provides a useful record, provided the purpose of the transfer is stated and the confirmation text messages are kept safely.
Market traders who lend and informal moneylenders
In Chadian markets, some traders advance cash or goods in return for a marked-up repayment. These arrangements escape all oversight and can cost far more than microcredit in Chad granted by a licensed institution.
Fake Chadian lenders on Facebook and WhatsApp
Some accounts pose as wealthy individuals or foreign organisations offering quick loans. They demand application, insurance or notary fees before any payout and then vanish, a scheme well known throughout the CEMAC zone.
Lending to an unemployed relative
Lending to a relative with no income, in N'Djamena or the provinces, means uncertain repayment and lasting family tension. The formal options available for this profile, often limited, are set out in the guide to the loan without a job in Chad.
The Chadian diaspora and cross-border loans
Chadians abroad often advance money to relatives who stayed in the country. These sums arrive through transfer services or mobile money; stating in writing that they are loans rather than gifts avoids misunderstandings when repayment falls due.
Similar practices in the Central African Republic
In the Central African Republic, another CEMAC country, mutual help and tontines play a comparable role alongside a small banking sector. The guide to peer-to-peer loans in the Central African Republic describes these practices and their limits.
What to do when a loan is not repaid in Chad
A dispute can first go to family mediation or to the neighbourhood chief. Failing agreement, the competent court of first instance can hear the case; the written IOU and proof of transfer then become decisive pieces of evidence.
Setting up a loan between relatives in Chad
- Agree together on the amount, the term and how often repayments are due before handing over any money.
- Draw up an IOU in French or Arabic, signed by both parties and certified if possible.
- Send the money by bank transfer or mobile money to keep a dated record of the transaction.
- Note every repayment received and give the borrower a signed receipt.
- If payments fall behind, seek a written renegotiation before turning to customary or judicial authorities.
Possible costs of informal borrowing in Chad
| Source | Usual cost | Points to watch |
|---|---|---|
| Close family | Often interest-free | Social pressure, vague deadlines |
| Standard tontine | No explicit interest | Discipline in contributions |
| Auction tontine | Variable implicit cost | Share given up to other members |
| Informal market lender | Marked-up repayment, sometimes very high | No oversight, risk of conflict |
| Mobile money transfer fees | Operator's price list | Amount and type of transaction |
Useful paperwork for a private loan in Chad
- Dated and signed IOU
- Copies of both parties' identity cards
- Repayment schedule in CFA francs
- Statements or text messages for mobile money transfers
- Signed repayment receipts
Dangers of informal one-to-one lending in Chad
- Sending application fees to an unknown lender contacted on Facebook, who disappears once the money has been received.
- Lending a large sum with nothing in writing, which makes proof almost impossible before a Chadian court.
- Handing your contribution to a tontine whose organiser is unknown or whose rules are not set down in writing.
- Agreeing to repay a moneylender double within a few weeks without comparing the offer with a licensed microfinance institution.
Questions about borrowing between individuals in Chad
Is lending between individuals legal in Chad?
Lending occasionally to someone close to you is legal. On the other hand, offering credit to the public on a regular basis is reserved for banks and microfinance institutions licensed by COBAC. Anyone doing so without a licence is operating illegally.
Can a Chadian tontine replace a loan?
For those who collect first, the pot works as an interest-free advance. For those who collect last, it is more like forced saving. Its usefulness depends on trust between members and on contributions being paid, with no legal protection if someone defaults.
How can you spot a fake online lender in Chad?
Typical signs are a promise of a fast loan without documents, a very low rate, contact only through messaging apps and a request for fees before payout. A genuine institution has physical branches and appears on the COBAC lists.
Do you need a notary for a family loan in Chad?
It is not compulsory. A privately signed IOU is valid if it is clear and signed by both sides. For a large amount, certified signatures or a notarial deed strengthen the evidence and make any later legal action easier.