Loans from private individuals
On the internet we find many adverts offering loans from private individuals. However, these ads are very tricky. You rarely hit an honest loan. These people mostly advertise for money to customers only.
Fraudulent loans from private individuals
If you want to borrow from private individuals and respond to advertisements, always check the contact details of the person in question and pay no fees in advance. These people will convince you that the loan is approved, but you need to pay a bail or an administrative fee. The amounts they demand range from hundreds of crowns to tens of thousands. After paying a fee, you usually do not see either a business representative or money. The phone is deaf and no one is receiving emails.
Peer to peer loans
Not all loans from private individuals are fraud. There are several portals on the Internet where customers borrow among themselves. All you have to do is register, enter the loan details and wait for the investors’ offers. This is a loan auction. The site is managed by the administrator and has clear terms for both the investor and the customer who wants to borrow. You can use multiple offers at the same time for smaller amounts or the entire amount requested. You need to enter true information about yourself in your profile. Loan applicants are screened thoroughly. You can choose loans with or without proof of income, with or without collateral, and offer interest that you can tolerate. On the other hand, the investor decides whether your demand is lucrative for him and whether he will offer you his money. Loans from private individuals are an easier way to borrow. In the Czech Republic, this system is not as developed as it is in England, where the first loan auction platform or in America was created. Excellent conditions and an automated system are offered by Obstemo with a platform that has expanded to include branches in the Slovak and Polish markets.
What are the advantages and disadvantages?
For loan applicants, the drawbacks are minimal, namely the assessment of the ability to repay the intermediary; However, this form of trading carries risks for investors themselves. In particular, default and then recovery of these claims. The investor should be familiar with what this investment brings and minimize its risk by diversification. In the Czech Republic these portals are regulated by the Czech National Bank. On average, interest ranges from 5% to 15%. Applicants in insolvency, with execution and debt to the tax office or insurance company can also get a loan here.
I chose an offer from the investor what next?
Did you choose an offer from an investor? Now you will receive a loan application and loan documents by post. You must sign them and have them signed and sent back. This is the first time your application is reviewed and the loan approved or rejected. If approved, within five days money will be credited to your account. The disadvantage is the lengthy process of not only processing the loan itself, but the time of transferring money from the investor. If you are looking for a really quick loan, this offer will probably not be the right one.