Nowadays, larger purchases are increasingly being financed through a loan. If you are looking for a cheap loan, you will usually do it at a bank. However, it is also possible to get a loan without a bank. The alternative to the classic bank loan is the so-called personal loan. This is issued by private investors and brings certain advantages for both the borrower and the lender.
Where can you get a loan without a bank?
What has been a common practice for many years is now becoming increasingly popular in the country. The granting of loans by private individuals. One of the major providers for this is our company. We have set itself the task of bringing together prospective creditors and private donors. The advantages for the borrower lie in the less bureaucratic processing of such a loan without a bank. An attractive return for their investment attracts private investors.
How does the loan work without a bank?
If you want to look for private lenders for your loan, create a so-called loan project on the portal. You also indicate the interest rate that you are willing to pay for the loan. The rest of the processing is done so that there is no direct contact between the borrower and the lender. During registration, the interested party not only provides the required amount, but also their personal data such as income relationships and their current spending situation.
The registration documents can then be downloaded directly to the PC and sent to lender together with the wages and salary statements. The documents are checked there and then placed online in the portal under an anonymous pseudonym. In the event that investors agree to the interest offer and are otherwise convinced of the loan request, they can provide money for the project. As soon as the required amount has been reached, lender will be paid into the borrower’s checking account. The monthly installments are then collected and distributed to the relevant borrowers.
Conditions of credit without a bank
As already said, the borrower himself determines the interest rate that he wants to pay on his loan. The possible loan amount is between 1000 and 50000 dollars and the term is either 36 or 60 months. If the placement is successful, lender cartoons a placement fee of 2.5 percent for loans with a term of 36 months or 3.0 percent for a term of 60 months. This will then be retained when the loan amount is paid out. Loan without a bank can also be covered by residual debt insurance. This then assumes the risks of unemployment through no fault of your own, incapacity to work and in the event of the borrower’s death.
A creditworthiness of the borrower is also required for loans without a bank. To protect private donors, lender performs a credit check including registration of credit data during registration. The creditworthiness of the borrower is shown after the query at credit by the credit rating levels AH. This is then also visible to private donors. If the creditworthiness is poor, a risk premium on the interest rate mentioned is also possible.