Anyone who recently wanted to apply for a loan or loan from a bank will have realized how difficult it has become to convince the bank. A loan from private to private is an alternative, because you should get a loan at the bank, the conditions are usually very bad. It is understandable that more and more people prefer to take online loan . Instead of borrowing money from banks, private investors are responsible for raising debt, also known as crowdlending .
Secure loan from home to home
In the case of private-to-private loan , potential borrowers make a kind of request on the Internet, the so-called loan project. They describe what the money, their personal loan, is needed for, and are then supported by various investors through their investment amount. This creates advantages for both borrowers and investors. Because as a loan seeker you have the chance of personal loan despite rejection at a bank, and as an investor you benefit from average returns of 5.0%. All in all, the loan is developing into an interesting alternative to the normal bank. Business start-ups, in particular, can benefit from personal loans because they often receive no or only a very expensive loan from a bank.
Loan over crowdlending financing
More and more founders are seizing the opportunity to have their seed capital financed by various investors. Investors can invest money in loan projects from as little as 25 euros. The principle proves itself and has already realized 183,000,000 euro loan volume and has over 895,000 members.
As a borrower you describe your personal project and investors have the opportunity to invest the money in the project. Using the crowdlending model makes sense for both borrower and investor. Because as a loan seeker you have the chance to get your desired loan and as an investor you can support these projects with profitable returns. Furthermore, it is possible by diversification to reduce the risk of loss. This form of financing is a great way for founders to bridge the first difficult months of self-employment and get the capital needed to start the business.