Need money quickly to get out of an overindebted situation? Loans between individuals can be a solution. But be careful, some precautions are needed to make a loan without risk.
What is the loan between individuals?
Appeared in the United States after the subprime crisis, the personal loan between private or non-bank credit consists of setting up a credit agreement between two individuals without the intervention of a bank. However, this operation can be assisted through an organization specialized in this type of transaction. The duration of a loan between individual can vary between 3 and 5 years for amounts generally less than 10 000 euros.
There are also different forms of loans between individuals such as family loans, microcredit or peer to peer internet. Several websites offer this solution. Find out if you are in a difficult financial situation before sending your file to the over-indebtedness commission. However be vigilant to the scams that develop on the web. The website linking lenders and borrowers must be approved by the ACPR or have an Orias number. If not, run away!
The advantages of this loan without bank
Your financial situation may not require the opening of an over-indebtedness file you may need a significant amount of money very quickly, credit between particular may be a solution. Anyone can be affected by over-indebtedness or cash problems. So, we must dare to talk to his family. The entourage can, in certain cases, be the solution to get out of a difficult financial situation thanks to the loan between individuals.
Credit without a bank may also be an alternative for people registered with the FICP or the FCC at the Bank in France and who no longer have the right to subscribe to a personal loan or to benefit from a repurchase of credit. Banks are cautious to grant new loans to this type of profile.
However, some people are turning to credit between individuals because they just do not have confidence in the current banking system. By making this type of loan, the borrower avoids paying operating or record fees that are often very expensive, with variable rates between 4% and 19% for consumer credit.
Loans between individuals: the precautions to take
Loans between individuals carry risks if certain precautions are not taken. Even if there is trust between the various protagonists, a written proof of the loan must be kept.
A loan between individuals must therefore be recorded in a contract, or acknowledgment of debts, containing the signature of the borrower, his name, his address, as well as the sum in manuscript in words and figures. In case of a loan of more than 760 euros, it must be declared to the tax authorities via the printed form number 2062.
A possible redemption of credit under conditions
In addition, if you are not registered at the Bank in France, this type of financing can be taken back as part of a purchase of credits, subject to certain conditions.
The banks that take back the credits study case by case and sometimes agree to integrate a loan between individuals in a repurchase of credit. The bank that takes all the credits will ask for supporting documents (debt recognition, loan agreement).