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Thank you for your question - what exactly are you lending the money for please?
Money lent on a non-commercial basis is not regulated by the FCA.
There is no one thing which makes a loan regulated as opposed to not being regulated.
If I lend my friend £100, it’s not regulated. If I lend several friends £100 and, I charge them a commercial rate of interest and I agree that they will repay me a fixed amount over a fixed period of time and it is done as an investment in order to make money rather than to simply help someone out then that would be regulated.
If it’s a case of lending someone some money and there being (even a formal agreement to pay you back at some stage in the future or if the business takes off, then that is not going to be regulated. So it depends on the terms under which you are lending the money regardless of the purpose.
Can I clarify anything for you?
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Your understanding is correct on both counts