Short answer. Yes. Article 1890 of the Civil Code expressly allows this: if the agent has been empowered to borrow money, he may himself be the lender at the current rate of interest. The reverse is not true — an agent authorized to lend cannot borrow without your consent.
What the law says
If the agent has been empowered to borrow money, he may himself be the lender at the current rate of interest. If he has been authorized to lend money at interest, he cannot borrow it without the consent of the principal.
Civil Code, Article 1890 — Agent as Lender or Borrower. Read the full provision →
The rule when the agent is authorized to borrow
An agent authorized to borrow money occupies a position that already involves finding a lender. Article 1890 permits the agent to step into the lender's role himself and advance the money from his own pocket. The condition is that the loan must be at the current rate of interest — meaning the agent cannot charge a rate above what prevails in the market at the time. This rule exists because allowing the agent to lend his own money is a convenience, not a conflict of interest: you get the funds you need, and the agent gets fair market compensation. No special consent from you is required because the authority to borrow already encompasses looking for a willing lender.
Why the reverse situation is different
Article 1890 draws a sharp distinction. When the agent is authorized to lend on the principal's behalf, he cannot borrow that same money for himself without the principal's consent. The asymmetry reflects a conflict-of-interest concern: the agent would be both the lender (acting for the principal) and the borrower (acting for himself), positions that pull in opposite directions. Without the principal's knowledge and agreement, the agent cannot be trusted to secure fair terms on both sides of the same transaction. So borrowing authorization flows one way freely; lending authorization does not automatically extend to self-dealing.
What "current rate of interest" means in practice
The ceiling is the prevailing market rate at the time the loan is made. The agent cannot use his position to extract an above-market rate from you — doing so would be a breach of his fiduciary duty to act in your interest. If interest rates later change, the rate set at the time of the loan is what governs, assuming a fixed-rate arrangement. If you agreed to a rate and later discover it exceeded the market rate at the time, that may be grounds to challenge the terms of the transaction.
Practical considerations
Even though the law permits this arrangement, it is wise to document it clearly. A written acknowledgment that the agent is lending his own money — specifying the amount, the rate, and the repayment terms — removes ambiguity later. It also protects the agent: if you dispute the loan, a written record is far easier to enforce than an oral agreement. An agent who lends without documentation may have difficulty proving the terms of the transaction, particularly when the estate or heirs become involved.