Lending to individuals by banks is at a very low level today. And all because many customers are constantly faced with rejections. The difficult financial situation in the country requires tightening of the rules of verification, banks cannot trust borrowers, so they check them as carefully as possible. This situation has led to the growing popularity of alternative sources of financing, such as microfinance companies. There is still an opportunity to take a loan from a private person for a receipt . This method of lending is very beneficial, because you do not need to collect a large number of documents, long wait for a decision. Loans from individuals are issued quickly and without complications.
Private Loan: Benefits
As with microfinance organizations, borrowing from a private person is worth it only after you have studied all the terms of cooperation, make sure that there are no hidden fees and commissions in the contract. It is also very important to check the reputation of the person who gives you money, to find reviews about it. If all goes well, you will be able to appreciate the following benefits that private loans have :
- rapid decision making;
- minimum package of documents (usually enough passport and TIN);
- no influence on credit history – banks do not recognize that you have taken out loans from individuals for a receipt ;
- the variability of the conditions of cooperation is much easier to negotiate with an individual than with an official financial institution.
Having received a loan from individuals, it is very important to make a debt payment on time. Usually money is issued and returned in cash, other personal terms can be used to discuss other loan repayment terms.
Advantages of micro finance organization
If you do not want to understand how to apply for a loan from a private person , and risk taking money from a stranger, not an officially registered company, it makes sense to apply to the micro finance organization. Microfinance organizations also offer loyal conditions of cooperation, willingly give out money only on passports and TINs. Only in this situation will you still have the inner confidence that everything is happening legally and safely!