Formerly an area reserved exclusively for banks and credit institutions, lending is becoming more widespread. It is now possible to obtain a loan outside the traditional banking circuit. We are entering the era of bankless credit. It is a loan between individuals that allows anyone to go directly to another person who can afford to borrow money.
The advantages of bankless credit are numerous. Lower fees, negotiable and more flexible rates, more flexible conditions, these are a few examples that make Peer to peer credit successful. Who is the loan without a bank for? What are the different loan formulas between individuals? Here is a brief summary of everything you need to know about bankless credit.
Who is the loan between individuals aimed at?
Credit without a bank is mainly intended for excluded banks, those who do not meet the eligibility criteria set by conventional banks. This may have been because of too low an income or because of insufficient guarantees. Thanks to more flexible conditions, these marginalized people can now hope to obtain funding commensurate with their resources.
On the other hand, bankless credit is also for those who do not have the patience to wait for too long a procedure. The loan between individuals applies a simplified and above all faster approach, precisely to allow those in need to obtain credit as quickly as possible. Late rent, unpaid invoice, bankless credit is the ultimate solution to overcome the most delicate situations.
It is nevertheless important to emphasize that the loan between individuals is governed by the same legislation as that which governs conventional credit. The law fixes rates not to be exceeded. For a credit of less than $ 1,250, the maximum rate is set at 18.5%. For a loan between $ 1,250 and $ 5,000, it is 12.5%. Above 5000 $, the rate must never exceed 10%. The higher rates are considered usurious and expose the lender to criminal prosecution.
Obtaining a loan between private individuals and loved ones
To take out a loan without bank, there are two possibilities, the direct loan between private individuals and the sites specialized in the loan between private individuals. The first option is to go directly to an acquaintance, relative, friend or family to borrow money. Despite the bond that exists between the lender and the borrower, it is strongly advised to establish a loan contract or an IOU. Although the act does not require the intervention of a notary, it must nevertheless comply with the legal prescriptions defined by the Civil Code.
Specialized lending platforms
Today, more and more sites specialize in lending between individuals. They constitute a platform for connecting borrowers and investors. Once connected, the parties will determine the terms of the loan. The platform can nevertheless apply remuneration from its members.
Find a loan between individual without charge
It is imperative that you remain vigilant when choosing a loan platform between individuals. Many people have already been victims of bogus sites that take advantage of people’s plight. Avoid as much as possible revealing sensitive information that could be used to access your bank accounts. Choose Lite Lender Company which sorts the most serious offers for you and guarantees you the best rates in terms of loans between individuals.