If you cannot get a loan from a bank, you can try a loan from a private person. There are numerous reasons why a bank would reject a loan application. The most common ones are too low an income or a negative entry with the Schufa.
With a loan from private, the credit opportunities do not look bad with these problems. Those who have made personal loans have their own requirements that a borrower must meet.
What is a personal loan?
A private loan is a loan that is granted by a private individual and not by a credit institution. Roughly speaking, borrowing money from a friend or acquaintance is no different. Many will be reluctant to take this path, as exposing their own financial situation is embarrassing for many. Other private donors who are not personally known are preferred.
The Internet and other media, such as the daily newspapers, offer numerous opportunities for a personal loan. On the one hand, there are platforms that process credit inquiries in this form on a daily basis. On the other hand, there are advertisements in which a private investor offers his capital or private individuals are looking for one.
Beware of loans from individuals
In connection with loans from private individuals, caution is always required if the lender acts as a private person. In these cases it will unfortunately happen all too often that these people demand high collateral for the loan or take interest which can be described as usury. Acknowledgments of debt must be signed, your own property must be used as a pledge, etc. For these loans from private customers, the Schufa query is often dispensed with.
Loan platforms are safe and reputable
The situation is different with the online platforms that establish contact between private investors and those interested in credit. Everyone can be sure that this is a serious and therefore safe business. The best known are currently Smava and Auxmoney.
Loans for everyone
You too can find the right loan
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Both services work similarly. Private investors who want to generate more returns for their capital instead of the low interest rates at the banks can opt for a financial investment here. Anyone looking for a donor must also register. And so interested parties and donors meet. Funders who want to invest in a “project” of a loan seeker can determine the amount themselves. The money will only be paid out when the desired loan amount is full. From now on, the lender receives interest from the respective provider. The borrowers receive the loan amount paid out by a bank. In the following, the bank will also collect the installments again. All of this speaks for serious work, so that neither borrowers nor lenders have little collateral in the form of private loans.
It can be seen on both platforms that creditworthiness features are becoming increasingly important. Private financiers must allow the Schufa query so that only those can take out a loan who do not have any negative features in the Schufa. The platforms put security at a very high level. Ultimately, a default should be avoided so that many donors invest their capital in new projects without fear that the money will not be returned.
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