Lending and borrowing between relatives in Seychelles
In Seychelles, lending between individuals is mostly a family or friendly affair: no peer-to-peer lending platform has been identified as licensed by the central bank, and the deal rests on a written acknowledgement of debt under Seychelles civil law.
Family help from one island to another
In an archipelago where everyone knows each other, advancing a few thousand rupees to a cousin for a ticket to Mauritius or wedding costs is still common. These loans are often agreed on a handshake, a frequent source of disputes.
No platform licensed by the Central Bank of Seychelles
No peer-to-peer lending platform has been identified as authorised by the Central Bank of Seychelles. Lending as a regular business generally requires a licence, and unsecured digital lending remains an area with little regulation so far.
The Seychelles Civil Code as the reference
Seychelles civil law, inspired by French law and reformed by the 2020 Civil Code, governs money lent between private persons. A written document setting out the amount, due dates and any interest makes it much easier to prove the loan in court.
An IOU and a notary in Victoria
The document states both parties' identities, their ID card numbers, the sum in rupees, the repayment schedule and each person's signature. Having a notary in Victoria draw it up strengthens its value as evidence if a dispute arises.
Interest agreed between Seychellois
Nothing requires interest between relatives, but if it is agreed it must be written down. A rate far above those charged by banks or the Credit Union may be challenged and can point to unauthorised lending activity.
Use a transfer rather than cash
Handing over the money by transfer between two Nouvobanq, SCB or Absa accounts, or through an e-wallet, leaves a dated record. Repayments should ideally follow the same route, with a clear payment reference that mentions the loan.
Informal moneylenders and their methods
Informal lenders offer quick cash in exchange for a bank card, a car title or a piece of jewellery left as security. These arrangements escape all supervision and expose the borrower to losses or to pressure from the lender.
Mobile money and transfers between relatives
Airtel Money, launched in 2015, and Nebula FinTech's services let people send small sums by phone. They make it easier to help relatives out, without amounting to a regulated credit product, and the amounts sent usually stay modest.
A bank loan is often safer
When the sum goes beyond a small favour, regulated financing protects both sides better. The usual conditions appear in our guide to a personal loan in Seychelles, and a Victoria bank or the Credit Union can offer that framework.
Funding a small venture within the family
An uncle who pays for a fisherman nephew's boat or a market stall in Victoria takes a real risk. Public options are described in our guide to microcredit in Seychelles, and putting the agreement in writing protects family ties.
Private lending seen from Namibia
Elsewhere in southern Africa, legal frameworks for private lending differ noticeably. Our guide to peer-to-peer loans in Namibia shows another approach to these arrangements, with differences that reflect market size and local traditions.
Disputes and recovery through the courts
If the money is not repaid, the lender can take the matter to the competent court in Victoria with the IOU and proof of transfer. Family mediation beforehand often avoids lengthy, costly proceedings, as court timelines can be long.
Securing a private loan between Seychellois
- Agree together on the rupee amount, the term, the repayment rhythm and any interest.
- Write a dated IOU signed by both parties, including their ID numbers.
- Consider having it authenticated by a notary for larger amounts.
- Send the money by bank transfer or e-wallet so that you keep proof of payment.
- Keep a record of repayments received and issue a receipt for each payment.
Possible costs of a private loan in Seychelles
| Item | Level | Note |
|---|---|---|
| Agreed interest | Free between the parties | Must be written in the IOU |
| Notarial deed | Notary's fees | Depends on amount and complexity |
| Transfer fees | Depends on the bank | Low between local accounts |
| E-wallet fees | Depends on the provider | Rates published by the operator |
| Court proceedings | Variable | Lawyer's fees in a dispute |
What to keep when lending to relatives
- Signed and dated IOU
- Copies of both parties' ID cards
- Proof of the initial transfer
- Receipts or statements for each repayment
- Written messages confirming the terms
What derails a loan between individuals
- Lending cash with nothing in writing, then being unable to prove the sum or the due date once the family relationship turns sour.
- Taking a quick loan by leaving your bank card and PIN with an informal lender, who then withdraws more than agreed.
- Paying fees to a so-called unlicensed peer-to-peer platform that promises financing without any supporting documents.
- Regularly lending to several people at interest without realising this may look like a credit business that needs a licence.
Common questions on lending money between Seychellois
Does a loan between friends have to be declared?
No specific declaration for occasional family loans has been identified. It is still wise to keep an IOU and proof of payment, which help to show where funds came from if a bank asks.
Are there peer-to-peer lending sites in Seychelles?
No local platform authorised by the Central Bank of Seychelles has been identified. Foreign sites targeting Seychellois fall outside local supervision and may hide advance-fee scams aimed at borrowers in urgent need of cash.
Can I charge interest when lending to a relative?
Yes, if the interest is agreed in writing and stays reasonable. An excessive rate can be challenged before a judge, and repeated lending to several borrowers could be treated as unauthorised credit activity.
What can I do if a Seychellois relative does not repay?
First send a formal written demand, then try mediation. Failing that, a lawyer can bring the case before the court in Victoria, relying on the IOU and the bank statements showing the transfers.