Many banking establishments offer consumer loans which they present in the form of a personal loan, an unrestricted loan, a cash facility or even an overdraft. The personal loan between individuals is also part of the credit to individuals. The loan contract is made between two people who are both individuals: the lender and the borrower. Most often, this type of credit is made between family members and does not generally leave the friendly circle.
Credit to individuals: a loan without going through the banks
It is now possible to take out a particular loan, without going through a banking organization. The procedures for this new form of borrowing are more flexible and funds can be released more easily.
Even if the procedures are not really the same as those of banks, a loan between individuals still requires the drafting of a contract or an acknowledgment of debt. It is important to remember that from 760 dollars, the tax declaration and the establishment of a loan contract become mandatory. For its part, the borrower must declare his loan if his creditor lends money to him alone.
Borrowing money as an individual: the possibilities
If a consumer credit provided by the banks does not finance a real estate project, a loan between individuals can help make this project a reality, but subject to conditions.
This type of loan, like consumer credit, finances the purchase of a car, various household equipment, etc. You can also request one to pay for your vacation or training, to do some interior or exterior landscaping, etc.
Advantages and disadvantages of personal loans
Whether through a credit organization or between individuals, consumer loans include benefits and inconveniences. If the personal loan is an attractive possibility to finance its projects faster and in a simplified way, it can present a particularly high interest rate compared to the affected loans, like the mortgage and the car loan.
As the consumer loan terms are fixed, you will have no unpleasant surprises. Everything is detailed in advance: rate, repayment duration, etc. The withdrawal period after signing the contract is 14 days and early repayment can be done. However, with all the flexibility and convenience that consumer loans offer, the borrower is likely to end up in debt distress.