Personal loans of lending private investors
Private loans today differentiate between the lending of relatives or acquaintances and the personal loans of lending private investors. When lending under relatives or acquaintances usually a fixed amount is awarded with a term, but without interest. The advantage of having a loan is that you know that person and are aware of their repayment intent. A repayment within the family or between acquaintances is therefore usually relatively uncomplicated.
Loan seekers without a solvent relationship still have the opportunity today to take out a personal loan. For a few years, special providers, especially on the Internet, have been promoting lending between individuals. The principle is simple, private lenders provide a certain sum, which in turn is given to borrowers. In the case of the providers Smava or Auxmoney, credit-seeking persons thus present their credit request for which the amount to be absorbed is intended. If private lenders find themselves, a loan agreement can be concluded. Prerequisite in this case is also a sufficient credit rating and no negative entry in the Private Credit.
Upon approval of the project by the providers, private investors have the opportunity to invest money in this project. The maximum limit of investment is evident in the specific provider. Loan seekers can apply for personal loans at Smava or Auxmoney between 1,000 and 20,000 euros. The terms vary between 12 and 96 months, loans are available from an interest rate of 4.25%.
It should be noted that most investors want to invest in projects that promise a high interest rate of around 15%. For these personal loan investors, the providers provided collateral in order to be secured even in the event of non-payment of monthly installments. Through a complex system of cooperation with various banks, the providers ensure their “investing” customers a high degree of security.
Even self-employed people have the opportunity to get a personal loan. The basic requirement is a minimum of 24 months self-employment, a “clean” Private Credit and the submission of various documents (tax assessment, BWA etc.).