Differences between a private loan and a private loan

Since the beginning of the crisis, banks have closed the financing tap, both to individuals and companies, due to the risk of defaults. This situation caused less and less loans to be obtained through traditional channels and other credit alternatives emerged.

It was precisely in 2012 when different alternative financing platforms took off through which to obtain private and private loans. Currently regulated financing methods with which to raise capital almost immediately. From small amounts to amounts of up to 50,000 USD and in less than 48 hours.

Surely the terms private lender and private loan are not unknown to you. But do you know what the differences are between the two? From private Lenders we want to explain it to you.

Main differences between a private loan and a private loan

Main differences between a private loan and a private loan

Private lenders

Private lenders

This type of lender is made up of individuals, usually from the financial sector (although there are also parents. Normal and ordinary people), who decide to invest part of their capital to make loans. In most cases, private lenders work in groups to obtain a greater amount of financing. Many start ups access this type of financing to start their companies. Individuals also request small amounts to alleviate certain specific expenses that can accumulate in a month.

In exchange for their fees, private lenders earn benefits through interest. The interests and the terms of return are previously agreed between both parties. If the bank does not listen to you or you need immediate liquidity, private lenders can be your solution. However, keep in mind that you should see them as a temporary financing method, since the interest is usually higher due to the possible risk of the operations and the speed in the granting of credit.

Although there has been a lot of mistrust in this sector, since it has been associated on many occasions with scams, today there are true professionals who are dedicated to it. In these cases, they are usually regulated by the Ministry of Health and Consumption, as is the case with private lenders, and they are subject to current regulations.

Private Loan

Private Loan

Private lenders are usually made up of private lenders. The difference between one and the other is the degree of development. The union of several private lenders gives rise to authentic financial entities with a highly developed business structure.

Like private lenders, they must be regulated by the Ministry of Health and Consumption. And compared to banks, they are able to cope with significant amounts of capital in record time. As a general rule they are quite affordable and are characterized by the ease of offering liquidity. Most of them work through the Internet, as in the case of private Lenders, to facilitate all procedures for their clients. The documentation requested is usually simple and the loan is usually accompanied by a guarantee if you want to obtain large sums. A car, a property and even a work of art. Jewelery is usually not worth as collateral in this type of loan.

Private lenders offer more credit than traditional financial institutions. Through them you can obtain loans with Asnef or RAI or loans without payroll. Something unthinkable today in banks because they are considered high-risk financial operations.

Although this system began to flourish in Spain from 2012, it has been operating in a truly active way in other countries for many years. Both within and outside the European Union.

We hope this article on the differences between a private loan and a private loan has been helpful to you.

Mortgage loans with Financial Credit Institution

Not a candidate to obtain mortgage loans

Not a candidate to obtain mortgage loans

Defaulters are not viewed favorably by financial companies. Thus, whoever is in RAI, Financial Credit Institution or appears in any list of debtors, is not a candidate to obtain mortgage loans with Financial Credit Institution. The same is true for individuals who cannot present payroll or are out of work. In a compromising situation like these, what to do?

For those who urgently need cash, but are having a tough time in their economy, there are mortgage loans with Financial Credit Institution . As its name says, they are established based on the value of a property, which is placed as a guarantee of payment. It is the only exclusive requirement when it comes to having a private equity loan. The good news is that the house in question may belong to a relative or friend of the person concerned, not exclusively to him.

Accessibility to mortgage loans with Financial Credit Institution

Accessibility to mortgage loans with Financial Credit Institution

In addition to being more accessible, they are processed much faster than we are used to. Mortgage loans with Financial Credit Institution can be applied for online, through a virtual form, and approval or denial comes within minutes. Once the contract is signed, the client has the money – in less than a week – in his usual bank account.

Private investors are willing to offer mortgage loans with Financial Credit Institution for an amount that starts from 6,000 USD and can reach up to 150,000, or at most 1/5 of the price of the house put as collateral. They have no capital cap -this is indicated by the client in writing- and they also work throughout the country. Residing in Spain and being of legal age, anyone can apply for financing.

Which the client will know before signing the contract

Which the client will know before signing the contract

These lenders establish the relevant interest rates, which the client will know before signing the contract at a notary in his city. The cancellation deadlines to choose range from 1 to 15 years, and if at any time the user needs more time, amortization will be granted at 0.25%, a service that is enabled after the first year of payment. “These loans aim to make themselves accessible to more and more consumers, and therefore offer flexible financing terms . “

Simply put, home equity loans with Financial Credit Institution are a way to strategically manage your own income. When no one answers, there is an easy option to manage, quick to obtain and, by the way, very discreet to have money now. Investors do not need to know what capital requires or inquire into their economic situation.