Sometimes there is not enough money to fulfill small wishes. Because the amount may be too small, taking out a loan is not worthwhile. The possibility would still be the overdraft of the current account, if there is a overdraft facility and has not yet been exhausted. But there is the possibility of taking out small loans from private individuals. This option can even prove to be quite inexpensive, because here the loan seeker determines the interest rate.
Lite Lender Bank.
There are portals on the Internet on which small loans from private individuals can be found. The most famous portal is probably Smava. Here private individuals have come together to lend money with the aim of investing profitably. The interest for this is higher than with conventional forms of investment. This inevitably results in a higher return. This form of borrowing is almost ideal for small loans.
Who can borrow money here?
In principle, everyone can apply for a loan on this portal for small loans from private individuals. The user has to register beforehand and can then express his or her credit request. Here is asked about the purpose. In addition, he should indicate how much interest he is willing to pay. Each connected user can now agree to the loan application or not. In reality, this means that the loan amount is not paid out by one person, but by several people.
The participants of this platform secure themselves through a fund that steps in in the event of failures so that the members do not suffer any financial losses. But here it is all the more important that the applicant’s Credit Bureau is checked. Anyone who thinks that negative information is irrelevant is wrong. Private investors in particular want to see their money secured. Without a perfect credit rating, there is no money here either.
Such a way of borrowing is really worth it for small amounts. Higher loans cannot be financed with this. But that’s not what the portal is for. In contrast to banks, the self-employed and freelancers are very welcome here.