Borrowers who want to borrow today can take advantage of numerous borrowing options. Where there was previously a clear limit to borrowing from some of the local banks in the area, today the variety of offers is only just beginning. In recent years, borrowers have been able to benefit from a significant increase in supply, especially with the numerous online banks.
Today, it is no longer only borrowers with an impeccable credit rating who can take out a loan. Borrowing is now possible under certain circumstances, even for people with a negative Credit Bureau or a low income if they can meet certain conditions. In addition to the numerous banks and savings banks with a fixed branch system, online banks and financial service providers are also available today as lenders.
Last but not least, credit intermediaries were able to draw increasing attention with the “democratization of the Internet”. Credit brokers today offer a secure credit from private to private, they only ensure the brokerage and smooth fulfillment of the contract from both sides. A credit from private to private is particularly suitable for borrowers with a negative Credit Bureau, since in most cases private credit intermediaries do not require Credit Bureau information when registering.
Credit from private to private – credit intermediaries make it easy and safe to apply
In order to be able to benefit from a credit from private to private, the first thing you always have to do is register on the relevant portal. In addition to personal details, information on creditworthiness must also be provided when registering. Precise information on income, profession and expenditure is usually sufficient so that the credit intermediary can get an overview of the creditworthiness. As a rule, proof of salary does not have to be provided; the same applies to Credit Bureau information. Based on the information obtained, usually in consultation with a partner bank, a ranking is created, the ranking below defines the options available to the borrower when borrowing.
Different models of borrowing
Two different models have been established for lending itself. One option provides for lending through the lender. In this model, the lender issues an offer with precisely defined terms, term, loan amount, usage, repayment, interest, etc. The borrower then has the chance to apply for the loan; if the requirements of both sides match, the loan agreement can be concluded.
Another model provides for the borrower to tender the loan request. The borrower has the opportunity to present his loan project in more detail and to convince the lender of the need for the loan. The potential lender can then bid on the loan within a certain period of time, here too the agreement of two declarations of intent decides on the conclusion of the contract.