Trend report: Personal loan. An option for lenders and borrowers
The situation is usually simple: either it flutters a unexpected Bill in the House or a consumer would no longer remove from the head – until it is ultimately bought. The liquidity of the affected individual is high, this initial situation is no problem. However, it becomes difficult if account balance can pay the necessarily Bill to pay, nor offers the possibility for purchases. The way out: a credit. But, as a credit for investors and borrowers can be equally interesting, should be a subject of this paper.
Make a payment to push a month, payment with the credit card helps, but who in the long run needs money to make a major purchase, for the personal loan can be an option
Option 1: Borrow money privately, without risking friendships
An old saying says “Money ruins the friendship”. With this wisdom in mind it is difficult sometimes very those who need money, to borrow it from friends. But sometimes a personal loan seems them as the only possible option, because a bank credit outside the personal scope, for example, through an Schufa entry. Borrow money from private investors is possible at auxmoney. The principle of developing personal loan is here explained: “publish as Kreditsuchender on auxmoney your desire to borrow money. Describe your project as detailed and convincing to investors to lend you money. (…) Be also as full and honest when indicating your monthly income and expenditure. The credit will cost you only a few minutes.”
Option 2: Give money and benefit from interest
Even if facing the current low interest rates today hardly anyone believes more return on exactly the same principle is possible, because the mediation of personal loans needs investment from individuals who can calculate interest with 2,3 up to 7.7 per cent. Various – much like in an auction house – borrowers to choose who explain their needs are the interested investors. Investors have the highest return on investment opportunities in a broad spread of their money.
The benefits of a regulated personal loan
Cheap, easy and still contractually regulated it is on the above described to the personal loan. In comparison to the bank credit is a loan with these advantages:
The payoff is usually quickly and directly.
The bureaucratic paperwork is reduced to a minimum. Arguments and justifications are not usually necessary to get the loan itself. But the borrower must present credible and honest, to attract lenders on him. Here is the substantive application of the borrower in the focus.
Risk groups have the chance for a personal loan. To limit the risk accordingly, interest rates will be increased accordingly. This is for the benefit of the respective investor (and not for the benefit of the credit institution).
The borrower his own happiness Schmid is a bit, because when he describes his borrowing needs transparent and plausible, his chance increases to a facility willing lenders.
Special redemptions are usually more easily possible than that of a bank loan.
The interest rate is not dependent on the institution, but is calculated with views of the borrower. The financial situation, as well as the Schufa information affect the interest rate.
Who can benefit from a personal loan?
Basically, each individual has the option to borrow money. Students, especially StartUps and freelancers use this investor option. Had very uncertain chances of a loan, in other places. The obstacles that lie in the template of a business plan or in the provision of a guarantor’s signature would be too high.
Basically, the borrower of a Privatkredites circumnavigates the creditworthiness, which is also mandatory for credit institutions. You have the implied duty (“law on credit”) to verify that the borrower is creditworthy. The application for a regular credit for those is difficult the
(still) not a fixed income can how about students who are nearing their first permanent position, but shoulder a moving or setting up a new flat must prove.
their credit needs while on a coherent concept of Start-Up, but not the business plans required by credit institutions and other calculations may submit.
already have a negative Schufa entry because of youthful indiscretions and have therefore no chance of a loan with a credit institution.
Figure 1: pixabay.com © stevepb(CC0 Public Domain)