Loans do not necessarily have to be taken out from a bank. Alternatively, there is the original form of the loan: the private loan. What was once regulated with a handshake is now perfectly organized. Potential borrowers and lenders are brought together around a table via special portals. Processing is anonymous, professional and quick.
Payday loans are now an option for self-employed and freelancers to meet their financial needs.
Credit requests are advertised online
The portals that realize loans from private individuals were inspired by the original lending business, which was carried out exclusively at the private level. They offer interested parties the opportunity to formulate and publish their loan request. On the other hand, donors are addressed to invest in these wishes. For this they are involved in the interest payments. The private loan is therefore a two-stage model that begins with the tender or application and can only be successfully completed if there are sufficient investors.
The portals stand straight for a safe and perfect process. Depending on the provider, not only the actual loan request, but also the creditworthiness of the applicant is checked. The application will then explicitly indicate what the prospect’s creditworthiness is. The interest rate that the borrower is willing to pay is usually based on this. This fact also distinguishes private credit from bank credit: the applicant can tweak the interest rate a bit to appeal to more lenders.
Payday loans are possible from 1,000 USD
A bank that operates in the background later ensures the cash flow. It ensures that the donors’ deposits are booked, pays out the loan amount and later forwards the installments to the investors. A payday loan is possible from an amount of $ 1,000. The terms are the same as for a normal payday loan. And even with this form of payday loan, it is possible to get the desired loan despite a negative Credit Bureau entry – provided there are other guarantees that can be used to convince.