Our logic has always been that we automatically thought of banks when we talked about credit. Today, there are alternatives to the banking system for borrowing money. Among them, we can count the loan between individuals.
Loan between individuals: formalization of conventional debts
When access to bank credit was not yet as accessible to the general public, individuals took out debts among themselves. However, the lack of a legal framework meant that many claims were not honored.
Today, loans between individuals have returned to the forefront, allowing them to take out loans between them in complete security.
Specialized platforms have emerged
To allow these loans between individuals, many platforms have been created. The principle is simple: investors deposit certain sums, which will be used to finance loans taken out by individuals.
The investors in question can be legal persons, companies, insurers, pension funds, or quite simply individuals who wish to make their funds grow instead of hoarding.
By taking out a loan between individuals, you can be sure that the steps will have nothing to do with bank loans.
Indeed, it is no secret that banks are very intrusive when they carry out their investigation on a pretender to credit, in particular with regard to his solvency and his cash inflows. With the private loan, the formalities are reduced because transparency reigns.
Furthermore, the 100% online nature of the procedures means that borrowers get a definitive answer in record time.
Flexible offers, depending on the type of project to be funded
The other advantage of using loans between individuals is that you can finance a wide variety of projects.
For example, you can take out a car loan on these crowlending platforms to buy a new car. You can also anticipate the coming of spring to begin your pool construction work, so that it is ready for the summer.
Generally, the amounts of loans that can be taken out via these platforms vary from 1,000 dollars to a few thousand dollars. But on Cream Credit for example, borrowers can claim amounts of up to 50,000 dollars.
Pay attention to the debt ratio
It should not be forgotten that a loan taken out must be repaid, because the signing of the contract is equivalent to a commitment. Remember to weigh the pros and cons before applying for a loan.
Among other things, you will have to question your actual debt level. If it is close to or exceeds 33% of your income, this means that taking out another loan is simply unthinkable.
You will also have to take a serious look at your repayment capacity, in order to establish the ideal loan repayment period.