With a loan from private individuals, financial bottlenecks can be compensated. Sooner or later everyone can come into a situation where they have to bridge a smaller or larger financial bottleneck.
Especially for purchases on a small scale, such as a PC, tablet or laptop financing, it often pays off to go to the bank. Some credit seekers can not get credit from the bank, so they want to borrow from private individuals.
A loan from private individuals can also be used in many ways. Some may wish to finance new furniture and kitchens, finance a debt restructuring or attend further education. The financing of a car or a vacation trip can also be the reason for receiving a loan from private individuals.
How do loans from private individuals work?
Loans from individuals are also known as P2P loans or peer-to-peer loans. Characteristic of this type of credit is that both parties are private individuals. That is, both borrowers and lenders are private individuals. Frequently, the social component plays a major role in private individuals’ lending.
The lender wants to use his money to support projects that make sense to him
Moreover, in the case of loans from private individuals, it is assumed that borrowers have a higher willingness to repay due to the partly personal relationship. Basically, credit seekers can take out a loan from private individuals even with friends or family members. More here and here.
However, over the last few years, the Internet has created some online marketplaces where credit seekers can apply for a small cash injection for their projects and purchases.
Frequently, a loan from private individuals is rather low in credit. Some private lenders also split the loan amount that they want to lend into multiple borrowers. If you want to take out a loan from private to private, you should have a good credit rating, just like a bank loan.
Find the right loan from private individuals
For private-to-private lending, some internet marketplaces have developed in recent years. Anyone who wants to take out a loan from private individuals is therefore in good hands on the internet. As individuals use different lending criteria than many banks, certain groups of people find it easier to obtain credit.
A self-employed loan is possible for individuals, for example. At Lending Family, for example, interested parties can obtain information about loans from private individuals and compare the loans of various providers.