Borrowing money without bank intervention is becoming more and more popular. A number of new initiatives bring borrowers and investors closer together.
If you want to borrow money without the intervention of the bank, you will soon have to call on friends and acquaintances **. Loan standards are often less stringent and the loan interest rate may also be lower. However, a private loan also has pitfalls that lead to a cold or broken relationship. Would you like to borrow money from friends or acquaintances? Then read the rules for a private loan first.
Peer to peer loan
A number of credit services jump into the gap between a private loan and a bank loan. They bring together borrowers and investors via an online platform. This is called the peer to peer loan. The borrower can get a loan outside the bank, without personal obligation.
Supply and demand meet in an online credit market. It happens as follows :
- If you want to borrow money , you can make a call for a loan.
- The loan amount is collected from investors ** via the website.
- When the loan amount is whole, it is paid to the borrower **.
Borrowers can place their loan advertisement for free on the website. A number of documents are requested to verify creditworthiness. Part of the product will be retained as a service charge. The investor must take into account costs up to 1% of the sale proceeds.
Advantages of the loan between individuals
It offers the borrower the opportunity to take out a loan outside the bank. The interest rate can compete with the current borrowing rate. As the loans are made anonymously, there is no chance that there is a bad personal relationship with the lender.
The lender gets a good return on investment. This is quickly higher than the current savings rate. The interest rate and term are known in advance. The creditworthiness of the borrower being verified, an estimate of the risk can be made.
Disadvantages of Peer-to-Peer Loans
A peer loan is no guarantee of success. A loan with too few investors is ultimately canceled. There is also a risk that a loan will not be repaid. If the credit market stops, the loan contracts also lapse.
Money borrowing platform
The number of initiatives to lend money without a bank is increasing. The first crowdfunding initiative for mortgage loans was also launched. Compared to neighboring countries, the Dutch market for public funds is still in its infancy. Below you will find our range of investment fund loans. Do you want to invest yourself? Take a look at our crowdfunding investment page.