Verbal loan agreement: Are you entitled to your money without a contract?

Have you bailed out a friend, family member or business associate with a loan, but there's nothing on paper? And keeps failing to repay? Then you're probably wondering if you're entitled to your money.

The short answer: yes, an oral loan agreement is legally valid in the Netherlands. A deal is a deal. But without a written contract, it becomes more difficult to prove you are right.

On this page you will read:

• When an oral loan is legally valid
• How to prove a verbal agreement
• When you may claim the loan
• What pitfalls there are, such as the excuse "it was a donation"
• How Credifin helps you get borrowed money back without unnecessary hassle

Want to know immediately what you can do? Then also read our comprehensive article on recovering borrowed money: recovering borrowed money.

In Dutch law, freedom of form applies. This means that an agreement is usually valid regardless of its form. You don't need a notary or an extensive contract to agree on a legally valid loan.

For example, a loan can come about like this:

• Verbal: A conversation at the kitchen table or a phone call is already a binding agreement.
• Digital: A confirmation via WhatsApp or email, or even a simple "is good" on your proposal, may be enough.
• By action: You transfer money and you agree that it is a loan. The transfer combined with that agreement constitutes the agreement.

The law mainly looks at two things: did you agree on the amount and was there a clear agreement on repayment? If so, then legally there is a loan.

So a written contract is not mandatory. It just helps tremendously with proof, and that's usually where the biggest challenge is.

The fact that your oral loan is valid does not automatically mean that you will easily get your money back. In a legal dispute, if you state something, you must prove it.

Suppose you say you lent 5,000 euros and the other person says it was a gift. Then you have to show that a repayment obligation was agreed upon.

Without a written contract, a judge looks at all the facts and circumstances. In 2026, your digital footprint plays a starring role in that. Messages, emails, receipts and previous agreements can combine to form a strong case file.

At Credifin, we help you gather that evidence and use it appropriately. This will increase your chances of successful out-of-court collection and, if necessary, court proceedings.

Even without a contract, there are many ways to prove an oral loan. Here are the main means of proof we use in practice.

1. Bank statements

Your bank statement is often the starting point. Did you transfer the money with a clear description such as "loan," "advance" or "refundable"? Then you are in a strong position.

Even if there is no description, the transfer at least proves that money went from your account to the other person. With additional documents, we can substantiate the intention behind that payment.

2. WhatsApp and email

Messages are often decisive in 2026. Consider:

• A question from the other: "Can I pay back that 500 euros next month?"
• Your reminder, "When will you pay back the loan?"
• A response like, "I can't pay right now."

That kind of message shows that it is a loan and that the other person recognizes that there is an outstanding debt.

3. Witness statements

Was someone there when you discussed the loan? A partner, colleague or friend can testify as a witness to what was agreed upon. In proceedings, a judge may even hear witnesses under oath.

4. Partial payments

Has the borrower repaid an amount before, say 50 euros a month? Then that is a strong indication that there was no gift. No one pays back a "gift" step by step.

Do you have these forms of proof? Then chances are that we can successfully collect your oral loan, first amicably and if necessary through the courts.

Is there nothing on paper now and you feel the other person starting to turn? Then it is important to act quickly and smartly. A small step can suddenly make your proof position much stronger.

Step 1: Send a quiet confirmation request

Send the borrower a factual, calm message via email or WhatsApp, for example:

"I see that the loan repayment of 2,000 euros has not yet succeeded. Shall we agree that you will pay in three installments?"

You don't pass judgment, you just record what you discussed earlier.

Step 2: Wait for the response

Does the other person respond with something like "I can't make that" or "Can it be done in four installments?" Then you have a written acknowledgment of the debt. From that point on, your verbal agreement has actually become a written loan.

Step 3: Clearly lay out the agreements

Do you come to an agreement together? Then confirm the agreements again by e-mail. This way you reduce the chance of new discussions and increase your security for the future.

Are you unable to reach agreements or are no longer responding at all? Then you can engage Credifin to build up the pressure in a professional and respectful manner.

Many oral loans do not include a clear end date. Still, you can't let your money float indefinitely.

Broadly speaking:

• Have you not agreed on a term? Then the loan is basically due immediately.
• Still, it is reasonable to give the borrower a reasonable time to pay.

In practice, it works like this:

• You cancel the loan. You do this by sending a clear letter or e-mail.
• You give a concrete payment period, say 14 or 30 days.
• You record what amount you claim back and to what account.

If the borrower does not pay after that, they are in default. From then on, you can charge legal interest and you can use a collection agency such as Credifin, possibly followed by court proceedings if necessary.

Want to know what such a process looks like? Read more about the full collection process.

A common defense with oral loans is, "It wasn't a loan, it was a gift." With that comment, the borrower tries to get out from under the payment obligation.

In practice, a gift is not easily legally plausible, especially if:

• The amount involved is larger
• You have a business relationship
• You were not in a typical gift situation (such as a birthday)

A judge will look at the relationship between you and your behavior. Partial payments, notices of repayment or the word "loan" in the description of the transfer are strong signals that there was no gift.

At Credifin, we often turn the pressure around: we ask the debtor to explain why you would give a large sum of money as a gift just like that. If the other person can't substantiate it, that strengthens your position.

A claim from a loan basically lapses after five years after the loan becomes due and payable. If you wait too long and do not respond for years, you run the risk of being legally unenforceable.

However, you can interrupt the statute of limitations in time. You do this with a clear written demand or a so-called interruption letter. With this, the period begins to run again.

Are you unsure if your claim is about to expire? If so, contact us quickly. The sooner you act, the better your chances of success.

Interest: what can you charge?

Didn't you verbally agree on an interest rate? Then you usually cannot claim your own (high) interest. However, you can often claim statutory interest from the moment the borrower is in default.

Want to know exactly what interest rate applies in your situation? Read more about the legal interest rate in 2026 or ask us to look at your file with you.

Demanding money back from someone you know is often tougher than collecting a business bill. You want to get your justice, but prefer not to have a permanent break in the relationship.

By engaging Credifin:

• Take the emotion out of the situation. We are the professional, neutral intermediary.
• Strengthen your case. We help you gather all relevant evidence and use it intelligently.
• We always seek a negotiated solution first, without unnecessary threats.
• Have a clear next step if the debtor continues to refuse, up to and including court if necessary.

For individuals, it's nice to know that we work with clear terms and a human approach. Also read more about what we do on the collection agency private page.