Obtaining credit is done through a traditional circuit involving the bank or financial institution and the applicant. However, it should be noted that this is not the only option for those who would like to borrow money. Indeed, the loan between individuals remains a serious avenue to explore but it is still necessary to know how to go about it. What are the steps to take to benefit from a loan without a bank?
What is the loan between individuals?
To better know the principle allows to identify its stakes and its mode of operation. As one can guess, the loan between individuals is done in a rather private circle. Thus the transaction can be carried out within the family or professional framework, the lender and the borrower dealing most often without intermediary. However, it is not uncommon to use a broker to give a more formal character to the transaction, especially if the loan of money is large. In particular, the borrowing process is fairly straightforward and the money can change hands easily. Although there is some formality to be respected, it is far from the administrative constraints that a bank may require. Whether in cash or by bank transfer, a family loan can be made without proof of the applicant’s creditworthiness. In addition, it is customary to produce an acknowledgement of debt in which the borrower commits to repaying the funds at a given date and according to specific terms and conditions.
What documentation should be provided?
Borrowing without the banks is an operation that must benefit from a minimum framework to reassure both parties. Thus, it is recommended to have written proof mentioning, in addition to the transaction and its amount, the identity of the lender and the borrower. It is possible to go further if it is for example a mortgage loan. In this case, it is recommended to request the services of a notary for the issuance of a notarial deed. There is a correlation between the value of credit without a bank and the level of formalism that can surround it. The larger the amount lent, the more individuals will tend to protect themselves by interposed documents.
Using a specialized agency
Applying for a credit implies being serious and individuals can, if they consider it necessary, contact specialized companies even for a family loan. Accessible online, these organizations offer a follow-up of the operation in order to avoid a default of payment or a possible scam. The procedures on these platforms are simple and quick. All you have to do is fill in a form with information about the borrower and the lender to create a file. The next step is to reach an agreement between the two parties, which will be followed by the provision of the funds to the applicant. By going through a specialist or by relying on written and legal documents, the borrower will not be able to show bad faith when it comes to paying off the loan, at the risk of exposing himself to legal proceedings.