Credit without a bank or loan between individuals is a form of credit that can be done without going through a bank branch. The loan between individuals is one, because it is feasible between two parties, that is, the lender and the borrower, who can be individuals hence the name loan from individual to individual or pap. Its great advantage is to allow anyone wishing to make a loan to subscribe to a fast credit. The request has been made easier so that the release of funds is as fast as possible in this type of loan.
Loan between individuals, a new form of credit without a bank
Since this money loan is made between the two parties concerned, they set their own conditions. To do this, the lender and the borrower usually draft and sign a credit agreement that sets the conditions for the loan: condition and duration of repayment, monthly payments, interest rate and total amount of credit. It is a formality to justify their commitment. In case of dispute or disagreement, the document will serve as evidence. This step is crucial, even for those close to you, because a credit even without a pay slip is a commitment to repay. Having a debt acknowledgment signed is an essential precaution for the lender who guarantees the repayment of his money by the borrower. This document therefore takes the form of a contract. Some people skip this step, essentially between two family members or two long-time friends. An uncertificated credit can be a source of conflict.
What are the advantages of credit between individuals?
The loan between individuals is most often associated with a quick and easy credit. Compared to other types of credit, the procedures have been streamlined and simplified so that everyone can access them easily. According to the borrower, the process of applying for credit between individuals can be summed up as the signing of a simple acknowledgment of debt. In this case, there must be mutual trust between the two parties. Without banking intermediation and the possible expenses resulting from the different steps and procedures
Note that without bank intermediation and different fees, the total cost of borrowing between individuals is, in most cases, lower than the loans granted by banking organizations. And even if you go through an accredited organization you can always hope to make a good deal by trading for the best rate.
Can we lend zero rate money to an individual?
If you are looking for a zero rate credit, ie free of interest rate. The loan between individuals can be a very good alternative. It should be known that the interest rate depends on the agreement between the borrower and the lender. It should not just exceed the thresholds enacted by the law which is 20.35% for a credit of 3000 euros or less. If you borrow from a relative, you can negotiate a loan between individuals at zero rates.
Which project to finance with a loan between individuals?
The loan between individual can be likened to a credit without proof of use in the sense that you can use the sum borrowed freely.
- If you need cash to deal with an unexpected event: Since everyone is subject to the vagaries of life and can overnight find themselves in a difficult financial situation. The loan between individuals can help you face it and get back on track quickly
- finance the renovation of his house: eager to undertake renovation work? You can have the money you need to finance these projects without having to make a personal contribution.
- Financing your company: with the advent of crowdfunding or crowdfunding, young entrepreneurs can now have access to financing more suited to their needs.
- to buy a new car: need a new car to get to work? It could be an urgent purchase especially if your workplace is far away. The steps necessary to get a car loan can take time and rates are not always advantageous, which is why credit to individuals can be more suitable.
HomieCredit, the first personal loan platform
Among the many credit companies that offer loans without banks at the best rate, HomieCredit, formerly Pret-d’union, is the leader and offers the best credit offer to individuals. This platform helps people who want to make a loan, whatever their project to finance. However, it is aimed at creditworthy borrowers who are able to repay their commitments within the period communicated in advance. The rate of return at HomieCredit is considerably higher than the rate of conventional savings. Moreover, this credit institution is born from this observation. To reassure the Internet users as much as possible, he has been approved by the French Prudential Supervisory Authority (ACP) since 23 September 2011. Thus, the use of his services prevents the loan applicant from being scammed.