What is a social loan?
A social loan, also known as peer-to-peer, social lending and private loan, is a solution that is very popular in Denmark, Great Britain or the USA. In Poland, the social loan entered the market at the turn of 2008/2009, so it is still a relatively new thing for us. Some people find it a great tool for borrowing money, but others find it too risky.
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What is a social loan?
The premise of a social loan is the possibility of concluding a loan between two people physical. They are distinguished by a flexible way of setting the terms of the contract. The process runs directly between the borrower and the lender, and it is a loan that you apply for online. You can get it from private individuals through online intermediaries, which means the entire process is completely anonymous.
When should you get a social loan?
What can you gain by taking out a social loan?
You have the option of agreeing with the lender the amount of the loan that suits you and the amount of the monthly installment, so that your home budget does not suffer. In addition, the contract will be more transparent for you, and you can take a quick loan without additional formalities, even with a negative credit history.
What can you gain by granting a social loan?
As a lender, you can choose the appropriate one yourself. you offers borrowers, where you set the terms of the loan yourself. From signing the contract, you are able to see
what profit you will have on a specific application, because the loan interest rate is determined at the very beginning of signing the contract.
A social loan is also a good solution for people in debt . Some people go into a debt spiral when they take out one loan to pay off the previous one. To get out of the vicious circle, the indebted person can take out a social loan in installments to pay off previous debts. This makes it possible to repay several smaller liabilities with one larger loan in several smaller installments, which will better bear the budget.
Another idea for getting out of the financial hole is to invest the money from the social loan in your own business. It is worth taking this idea into account. Often, however, the problem is not a complete lack of funds, but a temporary need for a larger amount. However, fate sometimes likes to play tricks on us, which often end badly for us, such as deterioration of health, a failed exam or other sudden fees.
Remember! Before you borrow money online, make sure that you will be able to pay off the loan on the agreed date. It is worth writing down the date so that you do not miss it.
Read the loan agreement carefully and sign it only when absolutely everything is clear and understandable in it. Check that you haven’t made any mistakes in the application, such as typos.