Borrowing by individuals through the p2p network is the latest fly. Regardless of whether it is possible to get a loan quite easily, many still find it stressful to fill out an application and expose themselves to reviewing and assessing a bank. So if you need a loan, where can you go except to the bank? You simply go where your bank gets its money from; people who have extra money over and want to get a decent return on it in exchange for letting the bank use this money to make money during the time they hold them.
The bank is just an intermediary. It collects money from people who have over and lends to people who need it. An intermediary always adds costs to a transaction, so why not remove the bank from the equation and go directly to the source? It is now quite easy to borrow money directly from other people rather than going through the bank.
By borrowing money directly from other people, you avoid a link that wants to make money on your loan and it is therefore more likely that you can get a better interest rate. Another benefit of borrowing money directly from other people is that it is a much smaller hassle! You do not have to go through a long application process that risks being rejected. When you borrow money directly from other people, your chances of getting the loan increase because the people who have money want to lend them to you so that they can get a return on their money through the interest you pay.
So how is it possible to borrow money directly from other people?
Borrow from private individuals with p2p loans
First you can turn to family members or friends, but they may not have the money you need or they do not want to set up a loan (sometimes on good grounds) as the risk of destroying relationships about things does not go as planned. too big. With a new internet service called p2p (person to person loan) you don’t have to worry about trying to get money from mom and dad or your best friend.
With a p2p loan, you fill out a simple online application and will immediately get people from across the country to participate in a bid to fund the loan. Also, since there are so many people bidding on your loan, chances are that the cost will be lower than you could have received at the bank.
Be sure to carefully read the terms and conditions that apply to borrowing from individuals on a person to person loan website before you register or apply for a loan. If you are not in a hurry, it is a good idea to let the loan stay out for bidding for a longer period, as it will then be able to attract more stakeholders who are willing to lower their claims for repayment time and interest on the loan.