Many people are refused to banks or loan companies. An alternative to borrowing money is private loans which are offered by private investors.
Are private loans for those in debt secure? How do they work and what should they be considered? The answer to these questions can be found in the post below. We encourage you to read the whole!
Private loans – for whom?
We complete the application and there is a refusal. Another conclusion and situation is repeated. What do people who banks or non-banking companies do not want to grant loans with? They can take advantage of private loan offers. Regardless of how many applications were submitted before. How many companies have rejected their desire to borrow money. For your private investors, your past does not matter, for them the present counts and what you have at the moment. Of course, these are only general observations and it really depends on the individual decision of the company that gives private loans.
If someone is indebted to BIK, KRD, BIG and even ERIF, they also have a chance for private loans for those in debt. However, before taking it, it is best to check if there is a loan on the market without a loan, where you can get money without risk. Most investors do not check their clients in databases, but not everything is colorful as it seems. A high risk of lending money to a person in debt is associated with high loan costs or pledging of material things.
Private loans for those in debt – what can I pledge?
Usually private loans are for a small amount. Rarely can we find offers for over USD 10,000 and for a long period. Small amounts and short periods are not suitable for everyone, but when we are in a difficult situation sometimes we have no choice. If a company offers private loans for example: USD 100,000 with a period of 3 years, a red lamp should light up. Because? Read about it at the end of the article.
The ease of getting a private loan is deceptive. Investors who borrow their own money want strong security in the event that their client does not repay the loan. Private loans for indebted people are most often secured. Here, everything depends on the investor as well as the borrower himself. Loan collateral can be material things such as a computer, telephone, TV set. However, it is often found that people who are pledged for loans give up their apartment.
Quick private loans and the bailiff
If we already have a bailiff’s execution it will be difficult for us to apply for a private loan. The bailiff usually takes our salary. In this situation, how do we prove to the investor that we will give back the borrowed money? The court bailiff can also take over our belongings from the apartment or even the apartment itself, so we won’t be able to give anything valuable against the private loan.
A loan without verification in BIK may be a preceding step before we reach for private loans for those in debt. It’s worth checking out trusted and secure non-bank institutions first. Many of them do not check their clients in BIK, so its better to use their offer. Loans from private investors should be a last resort.
Private loans for those in debt – what should you watch out for?
You must write it clearly and clearly. Private loans are a very big risk! There are many companies on the market that offer private loans for those in debt. Let’s not be fooled by the marketing gimmicks of these companies. A person who has a difficult financial situation, is desperate, may not read all the tricks contained in the contracts. We present a list that is worth reviewing before taking a loan from a private investor.
- Verify the company – in the age of the Internet, we can easily verify the company. By entering her NIP in the browser, we can check if a given company exists, whether its data is in CEIDG or KRS. If the investor is a private person, check more data such as name, surname or even pesel.
- Terms of the contract – let’s read exactly everything. Check if additional costs are included. Is the collateral for the loan what we have offered.
- Tempting promotions – as we have already mentioned, many investors attract customers with “interesting promotions”. Remember that the Investor borrows his own money so he will not risk free loans and discounts. Even if you come across such an offer, it is worth reading the promotion regulations.
- List of warnings – before the last element that we should check is the list of KNF warnings. We will find in it all entrepreneurs that we should avoid.
- Decision – we remind you that private loans are associated with high risk. Think over your decision several times to see if you really need it.