Loans between people – Refinancing debts

If there is something we like about interpersonal loans, it is that the process is different from the bank.

This is valued in a financial market where more and more people are looking for loans in places other than banking.

They know that banks are very slow when it comes to processing and signing credits so that you prefer alternatives like this one.

In we know this well because we know the reasons for processing financing nowadays.

People in spite of paying attention to the cost will also take into account other things such as speed or ease.

Trying to get the cheapest loan possible does not always bring the best results.

Not at all, in fact the financial market shows us every day how all these bank loans are very difficult to obtain.

Taking into account the numerous requirements that the entities put in the loan signature is logical.

Characteristics of loans between people

When we talk about these quick loans we have to understand that the person who loans is a private individual or company.

It is not as such a financial institution dedicated specifically to the signing of loans.

In fact it is not what happens in these particular loans .

The investors that lend what they do is invest their money in profitable and safe investments.

Money lenders are those who make these credits with the idea of obtaining a return.

For them the signing of credits is an investment opportunity.

A profitable and safe investment at least when the applicants provide guarantees.

Because in the same way there are private investors who only lend with endorsement those who are willing to sign without endorsement.

We can see it in the numerous platforms dedicated to the signature of loans between individuals.

In this way we can indicate among the main characteristics the following:

  1. Private investors are mostly non-professionals who invest their money.
  2. The profitability of these investments ranges between 8% and 15% per annum, although it depends on the type of financial operation.
  3. It is about safe investments since in the signature of the loan the investors lend a maximum of 35% of the appraisal value.

This means that the investment of the investors is completely guaranteed.

  1. We can say that they are also quick loans since the processing is done very quickly.

Different money platforms offer these credits

We can mention two different types of businesses.

  • Private financiers:

They are those companies specialized in the signature of private capital loans.

They are formed by professionals of the sector and are specialized in the signature of mortgage loans with property guarantee.

Finding people and companies that are willing to invest in private capital here is easy.

It is because there are guarantees that protect investors’ investment.

We can also meet with private financiers who make loans without endorsement but it is not usual.

It will not be because most of what they do is to lend only with endorsements in between.

  • Platforms between individuals

Instead of offering loans with endorsement for people, they are focused on loans to SMEs.

They offer financing through the Crowdlending also called Crowdfounding being some loans directed towards companies.

As you can imagine this financing will be much more complicated to achieve given the characteristics of this financing.

And there is more.

In summary, this is what we can say about interpersonal loans or private loans.