Do you have a problem with getting additional funds from a bank or loan company? Are you wondering if it is worth taking advantage of offers from individuals? Read the article, from which you will learn what private loans are, where to find such a loan and how to use it safely. You will find kreditvonprivat.cash helpful for you.
What are private loans?
You have certainly already come across various loan offers. You can get extra money, for example, from a bank or loan company.
But there is another option
Pursuant to the law, any person (including you) can become a lender.
- Image showing that anyone can grant a private loan.
Loans granted by persons who do not run a business in this regard are called private loans.
A loan is nothing but a contract in which one party undertakes to give the other a specified sum of money (or other things).
- transfer to a person taking a certain amount of money or things
- marked only as to the species, and the recipient undertakes to return the same amount
- Money or the same amount of the same kind and quality.
The law also allows for determining the remuneration for the person who grants the loan. These may include, for example, interest and various other fees that arise from the contract.
This construction of regulations resulted in a huge business around borrowing issues. According to International research “Why Poles are in debt” in 2018 75% of Poles aged 18 to 64 took credit or loan at least once in their life. 42% of them think that lending money is something natural as long as it is done knowingly and under the right conditions.
If you only have the right capital you can borrow money and make good money. You don’t have to set up a special company or bank for this. Simply putyou conclude a contract with the borrower and await the fulfillment of its conditions.
A private loan can have a different nature. This way you can borrow money from family, friends or completely strangers. Private lenders advertise themselves through newspapers, leaflets and on the internet. Everyone can benefit from private loanseven major companies, foundations and other legal entities.
Why people take private loans
IMAS International respondents indicate that the primary reason for borrowing money is that they need the thing to be too expensive to buy right away (44%). Another reason is temporary financial problems (29%) and unexpected expenses (27%).
For years, the money lending market was subject to restrictive regulations. The law obliged banks to thoroughly examine their clients’ creditworthiness. The non-bank loan market is also heading in a similar direction. These changes are aimed at limiting the lending of money to people who will have difficulty paying off their liabilities.
The situation is different in the case of private loans. Their functioning is based on the basic principle of economic freedomthat is, the freedom to conclude contracts.