A personal loan can always be an alternative to a bank loan. The current figures suggest that more and more people are taking out a loan from a private person. With a negative entry in the private credit, it can often be the only way to get the desired amount.
Where can a personal loan be taken?
Of a personal loan can be spoken even when money is borrowed from friends or acquaintances. As a rule, however, no interest is paid here, individual repayment agreements asserted and collateral is handled differently. The saying: When money ends the friendship, but should definitely be taken seriously. Many are simply ashamed of lending money to friends because it helps them spread their financial position.
Certainly there are other loan offers on the Internet where private individuals lend money, but these are the proverbial usurer loans. Either you have to pay dearly or are the collateral higher than the actual loan.
A legitimate loan without private credit query from a private person is offered through online platforms. Here private individuals lend money because they hope for higher interest rates than with a conventional investment. Creditors submit an application on the platform describing the use of the loan. It is not necessary that a private creditauskunft be published in the application. It is sufficient for many donors to have collateral that says something about the income situation. So the salary statement can be uploaded to see how much money is available in the month at all. Information on the budget situation should also be made, it also increases the chance that the loan application is “bid”. Donors do not have to provide all their credit, but can “offer” as much as they want. When the entire loan amount is full, the loan is paid out. This takes over a bank, so that the security for both sides is maintained. The bank also takes on the task of collecting the monthly loan installments and forwarding the funds to the lenders.
Conditions for a personal loan
The private loan without private credit can be cheaper than other credit options. The applicant and the lender ultimately decide what the respective interest rate is. Only if both agree, will the loan be disbursed.
It should be noted that although a personal loan rarely has the high fees for the intermediary, a fee has to be paid as well. This can be seen in the respective details of the platforms.