Borrowing from relatives or a savings group in Liberia
In Liberia, lending between individuals mainly happens through family, susu clubs and village savings and loan associations, since no peer-to-peer lending platform has so far been specifically licensed by the Central Bank of Liberia.
Widespread informal lending in Liberia
In a country where the banks' loan-to-deposit ratio stays below 50%, many households in Monrovia, Buchanan or Voinjama rely first on a relative, a colleague or a trader when they need an advance of cash.
Susu clubs in Liberian markets
A susu runs on regular contributions paid to a collector or a group, with each member receiving the pot in turn. Market women at Red Light or Waterside use it to rebuild their stock between trading cycles.
Village savings and loan associations
VSLAs bring together about twenty members who save every week and lend the common fund to one another with interest. The Central Bank of Liberia has published calls for expressions of interest to support these groups in rural counties.
Remittances from the Liberian diaspora
A large share of family loans is funded by relatives living in the United States, received in US dollars through money transfer companies or mobile money. These funds are often then lent on to a cousin to start a business.
Putting a family loan in writing
A simple contract stating the amount, currency, repayment dates and witnesses prevents many disputes. It is better to state whether the money is owed in LRD or USD, because exchange rate gaps can easily become a source of conflict.
Lending and repaying through mobile money
Orange Money and MoMo leave a dated record of every payment. Since late 2025, instant transfers between the two networks have made repayments easier between individuals on different operators, without going through a cash agent.
Neighbourhood moneylenders
Informal lenders advance cash at very high monthly rates, sometimes holding a phone, an ID card or a land deed as security. These practices fall outside the supervision of the Central Bank of Liberia and leave borrowers with little protection.
Security and disputes over private loans
If a loan is not repaid, the lender can go to court, including the magistrate courts, but the process is slow. A signed document, mobile money receipts and witnesses remain the best evidence available to either party.
From savings group to licensed Liberian lender
A VSLA member who needs larger sums can turn to a licensed institution: the microcredit in Liberia guide presents the Rural Community Finance Institutions, BRAC Liberia and AccessBank Liberia, which offer a more protective, supervised setting.
A last resort when income is irregular
For someone without a job, a loan from a relative is often the only option. The unemployed loan in Liberia page also covers training programmes and savings groups open to people in Monrovia and in the counties.
Fake lenders targeting Liberians online
Peer-to-peer loan adverts on Facebook or WhatsApp aimed at Liberians are often scams demanding insurance or processing fees. No serious lender requires an upfront payment by prepaid card or mobile money before releasing any funds.
Similar practices across the border in Guinea
In neighbouring Guinea, across the border from Lofa County, tontines play a role close to the Liberian susu. The peer-to-peer loan in Guinea guide shows how families there combine group savings with diaspora remittances.
Setting up a loan between relatives in Liberia
- Agree together on the amount, the chosen currency, LRD or USD, and a realistic repayment period.
- Draft a written agreement signed by both parties and by one or two trusted witnesses.
- Send the money by Orange Money, MoMo or bank transfer so that a dated record exists.
- Draw up a repayment calendar and write down each payment received along with its date.
- If difficulties arise, renegotiate quickly instead of letting arrears damage the relationship.
The real cost of informal borrowing in Liberia
| Loan source | Usual cost | Main risk |
|---|---|---|
| Family or friend | Often interest-free | Family conflict if payments are late |
| Susu club | No interest, rotating order | Collector disappearing with the pot |
| VSLA | Interest set by the group | Amounts limited by pooled savings |
| Neighbourhood moneylender | Very high monthly rate | Seizure of goods or documents |
| Mobile money transfer | Fees set by the operator | Wrong recipient number |
Written records for a loan between Liberians
- Written agreement stating amount, currency and due dates
- Copies of both parties' ID cards
- Orange Money or MoMo receipts, or bank transfer slips
- Witness signatures
- Ledger or record book of the VSLA or susu group
Dangers of informal loans in Liberia
- Handing your savings to an unknown susu collector with no fixed stall and no members in the market who can vouch for them.
- Leaving the original of your land deed with a private lender who could later sell the plot.
- Answering a Facebook loan advert that demands fees by MoMo before any money is paid out.
- Lending in US dollars and accepting repayment in Liberian dollars without agreeing on the conversion rate.
Lending and borrowing between Liberians
Are peer-to-peer lending platforms authorised in Liberia?
No peer-to-peer lending platform appears specifically in the Central Bank of Liberia's lists of licensed institutions. Before using an online service, it is wise to check its licence and to refuse any request for payment in advance.
What is the difference between a susu and a VSLA?
In a susu, each member receives in turn the pot built from everyone's contributions. In a VSLA, savings stay in a common fund that lends to members with interest, and the earnings are shared out at the end of the cycle.
Can a family loan be claimed in a Liberian court?
Yes, a debt between individuals can be pursued in court, but the loan must be proven. A signed document, witnesses and mobile money or bank receipts make the claim easier, though the process remains long and expensive.
How should the currency of a loan between relatives be set?
The simplest approach is to repay in the currency lent. If the borrower earns Liberian dollars, the parties can fix the conversion rate from the start to avoid disagreement when the LRD exchange rate moves.