Finance companies and lending institutions grant loans under certain conditions or requirements often not available. To obtain the liquidity you need, you can use private loans, an equally valid alternative that can offer you numerous advantages. In fact, a loan between private individuals does not foresee expenses for the payment of intermediaries and more advantageous rates. To obtain a loan between private individuals it is necessary to know how they work and to deepen all the aspects, including legal ones, in order to obtain them.
Loans between individuals: what are they?
Loans between individuals are alternative products to those granted by banks or finance companies. They can be obtained through a private negotiation, or by accessing an online peer-to-peer platform. In both cases there is no bank intermediation, so the agreement is reached only between you and the private creditor. In the case of private loans you can contact a family member or a friend willing to lend you money. Instead, in the case of peer-to-peer loans you will enter a new reality, called social lending, which allows you to get money without having to resort to traditional systems. Social lending is a reality involving private individuals willing to lend via the web.
Loans between private peer-to-peer
In the social lending system operate authorized companies that manage the money through virtual platforms, which you can access to obtain the loan and without any form of banking and financial intermediation. The absence of intermediation assures you lower than average interest rates and in any case fairly facilitated. There are three subjects involved in loans between individuals: the lender of the sum, who requests the sum and reimburses it with the interests and the social lending platform, which allows the meeting between the two parties, as well as the payment and repayment of the amount with interest at a subsidized rate.
Of course, whether you are a lender or an applicant, you will need to subscribe to the platform that will also assign you a level of confidence (rating). The higher your reliability, the lower the percentage of interest that will be applied to your loan. The rating is assigned on the basis of the data provided by the risk centers. The legal requirements are streamlined, as the platform will take care of crediting the loan and the individual repayment installments to the lender.
Loans through family or friends
By contacting a relative or friend who is willing to lend you money, you can agree on lower and lower rates of interest. To be in good standing with the Inland Revenue, you will have to use payment systems that allow tracking, ie check or bank transfer. When the sum of the loan is high, in addition to signing a written agreement, it is also important to go to a professional (lawyer or notary) to assist with the drafting of the agreement and specify the reason for payment and the repayment terms. The private writing, for legal purposes, must have a certain date and must also be recorded, indicate all the details of the parties, the timing of the financing and of course the signatures of the lender and the applicant.