The Internet has made a completely new form of loan among private individuals possible: With an online loan from private to private, money is lent between people who are completely unknown to date. As this has some advantages for both sides, this type of personal loan has become increasingly popular in recent years.
Financial portals for online personal loan
The internet platforms that organize such personal loans are not credit institutions. These financial portals act exclusively as intermediaries and are therefore not subject to the restrictions of the Banking Act. They offer people who are looking for easy loans the opportunity to publish their loan request. Interested private individuals who would then like to lend money to the loan seeker can get in touch with them, agree on the terms and conclude a loan agreement. An online personal loan can in many cases be completed more unbureaucratically than through a bank. In addition, the interest rates are often lower than those of banks and savings banks, because with this form of loan no credit institution has to be financed from the interest margin. However, it is not possible to take up arbitrarily high amounts dollars. These loans are also particularly suitable for financing charitable projects, for example in the social field or in environmental protection.
Credit checks on an online personal loan
Most financial portals check the creditworthiness of the prospect before the loan request is published. Like banks, they usually do this with the help of a credit request. However, unlike banks, negative creditinformation does not always automatically lead to the rejection of the loan application on these Internet platforms for online personal loans. However, anyone who can credibly show how they will repay their credit has a chance that their application will be published and that they will find lenders. In any case, it is advisable to be honest and describe exactly what the borrowed money is to be used for and how high the regular monthly cash receipts are that are available for repayments. In order to limit the risk for thelenders, a certain percentage of the loan amount is paid into a security pool each time a loan is granted. Should a debtor default, his loan will be repaid from the pool.