Loans that are offered to a relative or a friend are called as crown loans. This type of loan does not hold any hard or fast rules on the borrower, generally a person well off in the family offers such loans to the one who is struggling for financial assistance to build his house, business, etc. The loan will not bear any strict regulations of the repayment terms and in some cases will not require payment of interests. The crown loans are not very particular about the repayment period of the loans. So the crown loans can be easily called a relaxed personal loan or home loan.
Some people have an agreement signed as a proof of the lending of money but most of the crown loan lenders do not have any signed agreements. The repayment conditions are not open ended where there is no fixed amount to be paid every month by the borrower. Some borrowers agree to repay the loan when they are out from their financial problems and start earning profits.
Most of the people misunderstand crown loans to be gifts but they are not so. It is a loan that has to be repaid at some point of time or as per agreements if any.