Private Loans

A private loan is a well-known alternative to a bank loan or a loan from other lenders. If you want to borrow money in a situation where the bank does not provide you with a loan, for example, if your income is insufficient or you have recently changed your job, a loan from a private person may be the only way to get additional money. With an active payment violation, a bank loan is excluded, but loans from individuals may be available even if you do not fully meet the conditions of the bank.

Features of a private loan

Private loans are loans that a private person offers to an individual. However, this does not only mean that you should look for advertisements with the content “I lend you cash.” A cash loan from a stranger is the riskiest choice, which can lead to big trouble later. It is much safer to take loans from individuals through crowdfunding platforms that allow individuals to invest in them, and those who wish to borrow money from there.

Private loans are popular among people who:

• do not have a job;
• do not want to prove their identity;
  have a valid payment violation.

However, to take any loan, you need to go through a certain identification process, so you should take into account that the loan will still be associated with your personality. However, crowdfunding platforms are more flexible in terms of the workplace; for example, unlike banks, they do not set minimum income requirements, and they are also ready to lend money in a situation where a payment violation has been eliminated.

If you are determined to take a loan from a private person, then in any case, it is worth doing it through a crowdfunding platform unless you borrow from a relative or friend you can trust 100%. If you do take a loan from a stranger, we recommend that you, at least, conclude a notarial agreement.

Crowdfunding platforms fall into two categories: some offer loans only to companies, while others are ready to offer financing to both businesses and individuals. If you are looking for a suitable mutual lending company, first clarify to whom they offer a loan, whether it can be used for any purpose, and what are the conditions for applying for a loan.

Once you have chosen a suitable crowdfunding firm, the further process for applying for a loan will be much the same as for other online loans. Be prepared to apply for a loan showing your current income and liabilities. Often, a bank statement from the last six months is also requested additionally, so this process is very similar to that of other credit providers. In enterprise-oriented crowdfunding organizations, people invest in specific projects and fundraising can take time, but a platform offering loans from individuals disburses loans almost automatically, and getting a loan should not take more than 2-3 days.