Imagine the following story in which you can surely become the protagonist. You need to buy a car, buy a motorcycle, make repairs in your home or simply expand the capacity of your venture. To make these wishes come true, you need a certain amount of money that you have to apply for on loan. There are two options: go to traditional banking institutions or apply for loans between individuals online.
What are loans between individuals?
The first option, the traditional way of applying for loans from banking institutions, has the disadvantage of requiring abundant documentation and requirements that make even the bravest give up; In addition, credit approval times are not the most expedited.
The second option, the loan between individuals, instead offers speed and agility in the transaction becoming an alternative that gains more and more users. Online loans between individuals are nothing more than credits granted between people, that is, the lender is a person who offers an amount and the borrower is a person who receives it and must repay it in the indicated installments.
FAST PERSONAL LOANS
► From $ 3,500 pesos
► Up to $ 250,000 pesos
► Up to 36 months
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► From $ 3,000 pesos
► Up to $ 35,000 pesos
► Up to 16 months
How do loans between individuals work?
Loans between online individuals, also called P2P or crowdlending, are financial operations carried out between two natural persons, in which the lender grants an amount of money to a borrower with certain conditions of repayment time, interest and guarantees.
As the transaction is between two people, without intermediaries, the operation of this type of loan is basic. Only with the registration on the website, where you must also give information about personal data and answer some questions to know the payment capacity and risk profile of the applicant, it is sufficient for the loan application to be processed.
It is essential to give real information about our financial situation and credit history because in the world of new technologies nothing is hidden. All our credit history is in sight in Veraz Report, a database that lenders use to make sure of our financial capabilities and thus determine the corresponding interest rate. The lie is always expensive in the loan application.
Conditions of loans between individuals
Not all are advantages when it comes to loans between individuals. There are always some inconveniences or limitations that, if you know how to get around them, can be insignificant before the rest of the benefits that P2P brings. Among the conditions of loans between individuals is interest rates, which due to high risk are not low. Another aspect is related to the total amount of loans, which are usually not high.
Another condition of the P2P refers to the loan repayment terms. In some cases, the options to make biweekly or monthly payments, for several years, will depend largely on the capacity of the borrowers. These conditions of rates, terms and years of credit can become a strength if you have the ability to know how to organize and plan.
How to apply for loans between individuals?
If you are interested in getting a loan through P2P, you should know what the requirements are for applying for a personal loan. Basically, they are those of being of legal age, being Argentine or resident with ID, having a positive payment history, demonstrating stable income and having a guarantee. If you meet all these requirements, which are not many, you are more likely to get the loan with the best conditions.