You want to invest in equipment, offer an extraordinary trip, or subscribe to a consumer loan. What solutions are available to you today? You start by going to see your banker and set up a credit application. Since 2007 banks have been cautious and allergic to clients at risk or without excellent creditworthiness. Your banker refuses your request, how to do? It is not because a bank refuses a file, that it will not be accepted in another banking or credit institution indeed, these calculate the risks assigned to a banking operation in different ways, so try again! But there are other viable solutions, such as micro credit, crowd funding or loans between individuals. These methods of financing have proved their worth by allowing the launch of many micro enterprises (micro credit), projects or launches of young innovative companies.
What is a personal loan?
A financial loan from individual to individual is a loan of money between two individuals without the intermediary of a bank. It can be done between two members of the same family, within the circle of friends, with a neighbor or a colleague or by one or more third parties via a crowd funding platform.
Since the financial crisis of 2007 2008, individuals have sought to overcome the constraints and costs of banks or financial institutions. Loans between individuals and social and societal solidarity have become common currencies. This method of financing has experienced such a boom and revolutionized the financial system that it is now regulated by law. Concept, rules, peculiarities, pitfalls to avoid, all you need to know about loans between individuals click here. In order to know more about Credit 33 Legal Moneylender, you can always seek help online.
How a loan works between individuals
A loan between individuals can be realized in a simple and informal way, between two members of a family for example or in a more “official” way via a platform or other. This monetary exchange can be done for free or give rise to remuneration that is to say with interest rates (in the limit of attrition rates). In all cases, these loans are subject to the legal rules of bank loan agreements and it is strongly recommended to establish a loan agreement, regardless of its amount, the affected parties or the terms of the contract.
It is proof of remittance and facilitates the recovery of the loan in the event of litigation or nonpayment. This act must indicate the terms of the loan (possible interest rate, terms of repayment), be dated and signed. Each party must keep a copy of this contract to avoid any dispute. Namely Beyond the sum of 760 euros for the year, it is mandatory to draw up a loan agreement and make a declaration of loan contract to the tax authorities. Concerning the possible interest rates, these must be defined freely by both parties and respect the legal limit of the interest rates.