You don't always have to take out a loan from a bank, you can also get it from private individuals. But a personal loan has its own rules, whether you borrow money from friends or get it from a group of anonymous lenders.
What are the advantages of a personal loan from friends or family?
A loan like Coronavirus Personal Loans from acquaintances has several advantages. You can make the contract easier and more informal than a bank does. Your family or friends will not obtain any information about you from the Credit Protection Agency credit agency. Relatives and acquaintances are also likely to demand less than banks when it comes to interest rates. This could be really helpful in this disrupted economic situation. You can now easily get it and know all the details as well. You can get special Coronavirus Personal Loans from Davenport Financial
The situation is similar when it comes to lending private individuals do not have to comply with the legal requirements for lending that apply to banks. This involves, for example, what information banks need to obtain from the borrower and how they have to check their creditworthiness (creditworthiness).
While a financial institution checks the creditworthiness of the borrower by default, for example by showing proof of salary and obtaining Credit Protection Agency information, relatives or friends are concerned about trust. The fact that you have to submit documents to them is rather the exception. In addition, a personal loan is not reported to Credit Protection Agency.
As a rule, collateral is also not necessary for private loans. In the case of bank loans, on the other hand, you often have to agree to the assignment of your income or hand in the motor vehicle letter for car loans.
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Can personal loans also be taken out through credit portals?
If you want to borrow money privately, the money does not have to come from your circle of friends; you don't even need to know the private lender. There are companies that broker private loans.
In such cases, personal loans work like traditional installment loans from a bank: you make an application and receive a loan after checking your documents, which you then have to repay with interest. However, the money does not come from a bank, but from private individuals who want to invest their money in these loans and earn money through interest.
The providers of these personal loans cannot do without a bank, after all, the granting of loans in Germany is regulated by law. For example, companies need an official permit. The providers of personal loans, therefore, work in the background with banks.
How do you get a cheap loan?
There are different ways to get a cheap loan. With smaller sums, in particular, it can be worth asking your family and friends. Keep in mind that you are legally on uncertain feet without a contract. And even with a contract, your personal relationship is at stake.