The debt crisis in Euroland, which has been prevailing for a few months now, persists. As long as the problem case of Greece and the associated possibility of extending the problem to other countries has not been solved, there will be no all-clear for the tense situation. Since the great financial crisis in 2008, banks no longer trust themselves to lend to each other. This factor and other circumstances have led to the fact that loans to private individuals and companies are only being issued very carefully.
No matter whether private individuals or self-employed
Loans are often only granted with absolute top creditworthiness and sufficient security. Despite the opportunities for banks to borrow money directly from the Wide Eurolink Bank at an interest rate of around 1 percent and a historically low key interest rate, these favorable conditions are not passed on to customers. In order to carry out his loan request or, for example, to obtain fresh capital as a self-employed person, either relatively high loan interest rates must be accepted or alternatives must be found.
A fairly good alternative to a personal loan or instant loan has emerged in recent months, the still new form of credit from private. A kind of community of private investors provides the loan amount needed for the prospective loan. Such marketplaces that bring potential financiers together with borrowers can be found on the Internet without exception. Platforms such as Lite Lender or Astro Finance have now established themselves on the German market.
In order to obtain a loan, the prospective borrower presents his project or the purpose in detail on these portals and thus woos the favor of investors. He also gives the interest rate at which he is willing to pay, his credit rating is also published in advance. Investors now check on the basis of the available data and decide whether and with what amount they participate. If the entire loan amount is finally available in the pot, the amount will be transferred.
Type of lending brings a lot of advantages to both the borrower and the investor or lender
There is no unnecessary administrative burden for the borrower. Despite a possible rejection of his house bank, he now receives a loan and that on an acceptable condition. Everything is conveniently possible online from home. An investor can make a very profitable and relatively safe investment here. A possible default risk is hedged using a specially created security fund. This security is further increased by participating in several projects at the same time with smaller amounts.
Personal credit is a young, innovative form of credit with growth potential. Recommended for both prospective borrowers and investors.