The personal loan is not given by a bank but by a private individual. There are many conceivable situations in which people are dependent on a loan.
Whether to carry out necessary repairs to the property, to buy a new car or to make the dream of a long-awaited vacation come true.
This loan does not always have to be issued by a bank, and private individuals are also allowed to use their capital. The Private Loans section may also be of interest if you can not provide collateral to a bank, or fall through the grid for any other reason and the loan request is rejected.
Often private loans occur within families . Here, the trust between the people concerned is very large and in emergencies, family members help each other. The personal loan is then usually granted interest-free and without formalities .
In the meantime, however, companies have also been set up in Germany that mediate lending between private individuals. Examples include smava and auxmoney. The principle is very simple. A liquid investor seeks a new form of investment for his money and comes across the possibility of private lending.
The respective borrower, on the other hand, is looking for a favorable loan. Through the intermediary, both sides meet more or less quickly and the business is done perfectly. The platforms also offer various features such as a rating system for the borrowers and the like for the security of the lenders.
To prevent the risk of insolvency , most recruitment agencies have established funds to hedge . This should ensure security for private investors. Nevertheless, personal loans are still scarce in Germany.