The individual loans are an option to consider when looking for extra funding to a financial hardship. we explain what loans to individuals are, what type they can be and by what means can be made effective.
What are loans to individuals?
As its name suggests, loans to individuals are those that occur between individuals without the intervention of a traditional financial institution. That is, it is a low or no interest money loan if it is a loan between friends or family. Also loans to individuals are those in which a third party is used, even if it is unknown, in exchange for paying interest.
The first advantage of this last option is discretion, since a private lender does not have to give you explanations of what the money is for. In addition, for the applicant is a way to prevent their environment from knowing the pothole that is happening. Although there are drawbacks that we will explain below.
Loans to individuals: going to a lender or family and friends?
The figure of the lender has existed for centuries. It is none other than that of a wealthy person who leaves money to another, in exchange for a greater amount. Differential money is the price of the loan; the interest rate, as explained in the post ‘ TIN and TAE, who is who? ‘.
It may seem like a bailed-out option when money is urgently needed, but it is also true that going to a private lender involves far more risks than other external financing. Starting with the price of money, it will be much higher. As the solvency of the applicant is in question, since it is not usually made an assessment of the same, the interest rates are much higher than in any other type of loan. And then there are the consequences to a possible default, which can be charged with any material possession of the borrower.
On the other hand, loans between friends or family are often much cheaper – often without commissions and at an interest of 0% – but are based on mutual trust between the parties and over time can end up giving dislikes. In addition, the borrower is forced to disclose his economic situation, a matter that is not usually dish of good taste for anyone.
Loans to individuals
In either case, whether through a lender or soliciting it to someone close, it is advisable to raise the loan to the public. That is, signing a loan agreement before a notary, which in the worst case is used to keep the backs of both parties?
Other financing alternatives
An intermediate exit and with all the legal guarantees is to request one of the fast loans that are offered today on the Internet. In companies like Kredito24, for example, you can order credits online from 75 euros to 750 euros, to be returned within 30 days. In the specific case of this entity, the service is controlled by regular audits of the Data Protection Agency, as well as by all legislation regarding personnel and credit granting.
On the other hand, these minicreditos can be obtained without payroll and even being in Asnef. This is possible because we do value of the applicant’s creditworthiness before approving a loan. It does this through a short questionnaire request and with the help of a last generation algorithm that analyzes information about the user. This scoring tool is capable of valuing thousands of data in seconds, so if the loan is approved, the applicant can have the money in his account in just minutes (depending on the times of the receiving bank). Finally, their other great advantage is comfort, since they can be ordered without leaving home. Just have a device (mobile, tablet or computer) with Internet connection.
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