Lending and borrowing between individuals in Morocco
In Morocco, a loan between individuals is legal if it stays occasional and interest-free between Muslims under the Code of Obligations and Contracts, is proven by a certified IOU, and online lending goes through crowdfunding platforms licensed by Bank Al-Maghrib.
A widespread family practice
In Morocco, money lent between brothers, cousins or neighbours often pays for a wedding, a move to Casablanca or the purchase of a taxi. These loans rest on trust, but a written record prevents many conflicts at repayment time or during an inheritance.
What the Code of Obligations and Contracts says
The DOC governs consumption loans between people. Its Article 870 states that any interest clause is void between Muslims, which makes a family loan an interest-free loan in the vast majority of cases in Morocco.
IOU and certified signatures
A document stating the amount in dirhams, the repayment schedule and the parties' identities, signed and certified at the district office or municipality, is solid evidence. For large sums, a deed drawn up by adoul or a notary offers extra security.
The daret, a rotating savings circle among relatives
A daret brings together several people who each pay the same sum every month, handed in turn to one participant. Widely practised among colleagues and neighbours, it works as interest-free credit for those who receive the pot early.
Crowdfunding regulated by Law 15-18
Law 15-18 created collaborative financing companies, the only entities allowed to operate a platform. Lending and donation platforms are licensed by Bank Al-Maghrib, while equity investment platforms are licensed by the AMMC.
Limits on loan crowdfunding
A project cannot raise more than 3 million MAD through collaborative lending, and each contributor is subject to annual caps. These limits protect individuals who lend their savings to very small firms or project founders.
Why foreign P2P platforms are a problem
European peer-to-peer lending sites are not licensed in Morocco, and the dirham is not freely convertible. Sending money to them or receiving funds from them may breach the regulations of the Foreign Exchange Office.
Security cheques: a risky habit
Many lenders demand a signed cheque as security. If that cheque is presented without sufficient funds, the borrower faces criminal proceedings under the Commercial Code, turning a family debt into a court case.
When regulated credit is the better choice
For a large amount, a bank loan in dirhams offers a clear schedule and the legal protections of Law 31-08. The guide to the personal loan in Morocco compares this option, while Moroccan microcredit suits small businesses.
Fake private lender scams
Facebook accounts and WhatsApp groups claim to offer loans between individuals in Rabat or Agadir in exchange for application fees sent through Wafacash or money transfer. No genuine lender asks for payment before handing over the funds.
Tax matters and transfers from Moroccans abroad
A Moroccan living abroad who lends to family usually transfers foreign currency that the bank converts into dirhams. Keeping the transfer records helps prove where the money came from and that a loan was made if it is ever disputed.
A look at neighbouring Tunisia
Tunisia has also passed a crowdfunding law, with platforms requiring specific approval from its own financial authorities. Our guide to the peer-to-peer loan in Tunisia lets you compare these still recent Maghreb frameworks.
Securing a private loan between individuals in Morocco
- Set out in writing the amount in dirhams, the payment date and a realistic repayment schedule.
- Draft an IOU stating both parties' CNIE numbers and confirming that no interest is charged.
- Have the signatures certified at the district legalisation office or use adoul.
- Pay the money by bank transfer rather than in cash to keep a record of the handover.
- Note each repayment received and sign a final receipt once the debt is fully settled.
Costs linked to a Moroccan private loan
| Item | Benchmark | Remark |
|---|---|---|
| Interest | None between Muslims under the DOC | A stipulated interest can be challenged |
| Signature certification | Modest stamp duty, indicative | At the district office or municipality |
| Adoul or notarial deed | Fees set by the professional | Useful for large amounts |
| Transfer fees | Depending on the bank | Written record of the payment |
| Crowdfunding platform commission | Set by the licensed company | Varies with the project financed |
Useful papers for a loan between relatives
- CNIE of the lender and the borrower
- Signed and certified IOU
- Proof of the initial bank transfer
- Signed repayment schedule
- Receipts for each repayment
Abuses to avoid in loans between individuals
- Lending a large sum to a relative with nothing in writing, then being unable to prove the debt before the court of first instance.
- Demanding an undated cheque as security, a practice that can lead to prosecution and wreck family relationships.
- Paying fees to a so-called private lender met on Facebook, a very common scam targeting people turned down by banks.
- Investing through a crowdfunding platform that shows no licence from Bank Al-Maghrib or the AMMC.
Lenders to contact
- Bank Assafa: Moroccan participative bank offering Sharia-compliant accounts and financing, including home Murabaha for individuals wishing to purchase residential property.
- Banque Populaire (Groupe BCP): Moroccan commercial bank offering individuals consumer credit products, including the Moujoud loan and personal car financing options for retail customers.
- BMCI: Moroccan commercial retail bank active in providing financing solutions to individuals and businesses across the Moroccan market.
Answers on lending money between Moroccans
Can I lend to a friend with interest in Morocco?
Between Muslims, Article 870 of the Code of Obligations and Contracts makes any interest clause void. The loan itself remains valid, but the interest cannot be claimed in court. Only licensed institutions can legally lend at interest.
Do loan crowdfunding platforms exist in Morocco?
Yes, Law 15-18 has allowed them since its implementing texts came into force. They must be run by a collaborative financing company licensed by Bank Al-Maghrib, which checks their organisation and how contributors' funds are protected.
Is an IOU enough before a Moroccan judge?
A written, certified acknowledgement of debt is strong evidence before the court of first instance. It must state the amount, the date and the repayment terms. If the borrower fails to pay, an order for payment procedure can be started.
Is the daret legal?
The daret is an informal savings practice among people who know each other. It is not prohibited, but it offers no protection if a participant stops paying, which is why it is best kept within a circle of trust.