Life in the capital Berlin costs a lot of money. It’s not just the rents that are usually very high. A few years ago it was still common to go to your house bank and ask for a loan. In today’s world, this is no longer the only way that you can create financial freedom. More and more consumers prefer a personal loan over a traditional bank loan.
Loans from private individuals as a modern form of loan
Some time ago, a private loan in Berlin was mainly granted by relatives, friends or acquaintances. The advantage of a personal loan from a known person is that the creditworthiness of the borrower is usually not checked.
As a rule, a personal loan from a known person incurs little or no interest. With a loan from a known person, however, you should note that a loan contract is still concluded. All agreements between borrowers and lenders should be set out in writing.
Get credit from a private lender
Even if the loan from a family member or friend has almost only advantages, it is not so easy to obtain such a loan. Often there is no one in the circle of relatives and friends who is financially able to grant a loan or who simply does not want to do so.
However, there is an alternative to a bank loan and a loan from a relative or friend, namely the loan from a private investor. You can also get a private loan in Berlin from a completely foreign person. More and more private individuals are willing to act as private lenders and to grant loans to private borrowers.
Credit from private investors also for the self-employed & freelancers
A private loan is not only enjoyed by private individuals in Berlin; the self-employed, start-ups and freelancers also enjoy the alternative to bank credit. These groups of people often find it difficult to obtain a loan from a bank because they cannot prove a regular income. Borrowing from a private individual is usually easier.
When lending from private to private, most of the provisions of the Banking Act do not apply, so the obligations and rights between the private lenders and borrowers are flexibly negotiable.
Loosened acceptance guidelines increase loan approval
Loans from private individuals do not have to comply with the strict regulations such as bank loans. If you want to get a loan from a Cream bank, you have to provide proof of a permanent and permanent employment relationship as well as a regular income. In addition, a query is carried out at Credit bureau before each loan is granted. This should inform about the creditworthiness and show negative entries. If you cannot meet the requirements, it is not possible to grant a loan.
The situation is different with private loans. With this type of loan, private lenders can usually decide for themselves who they grant a loan to and what evidence is required to grant a loan.
This is how it works!
Alternative application options:
If the borrower’s financial situation is not so good or the loan amount is high, the risk for the private investor is usually high. For this reason, a P2P loan can be realized by several lenders who then share the risk.