Is a private loan a good way to invest money?

The loan between individuals is an excellent alternative to the bank loan. In addition to being legal, it is regulated by law. And the most interesting thing is that it is profitable for both parties. Find out in this article how the loan between individuals works and the interest to start.

Loans between individuals: is it profitable?

Exchanges between individuals offer the possibility for the borrower and the lender to benefit adequately from economic benefits without having to go through an intermediary.

This type of loan offers the lender very attractive benefits. The interest that is added to the loaned amount is a way for the lender to earn money, because the interest rate on a private loan is high compared to the interest rate on a bank loan. The profitability is therefore not lower. This type of loan is therefore an excellent idea for grow money.

The private loan also has advantages for the borrower.

Firstly, unlike the bank loan, the latter will not have to disburse money for the registration fee.

Secondly, the private loan is easy to get. And this, as quickly as possible.

Third, it may happen that the interest rate of some loans between individuals is lower than that of bank loans. This is especially possible when compared with the rate applicable to bank personal loans. Consequently, the loan between individuals helps the borrower to do savings.

This type of credit has developed a lot in recent years thanks to credit platforms. We invite you to discover Mintos, one of the best known and most trusted platforms.

Lending between individuals is like bank loans. Except here, the procedure is more simplified.

Here the loans are made on specialized platforms. These are responsible for connecting investors and borrowers. Investors must:

  • Have a bank account in the European Union;
  • Be at least 18 years old;
  • Invest at least 10 euros.

They enjoy a very attractive savings rate on their location.

To get credit, borrowers apply online by adding some information. This method is very effective and fast. The refund is made by monthly according to the contractual terms. Everything is clear before signing the contract.

What are the risks of this type of loan?

The loan between individuals is very advantageous, but it also presents risks. The main risk that all investors fear is insolvency. But luckily, some platforms like Mindos are strict on this. Do not hesitate to read another opinion on Mintos to convince you.

In fact, not all borrowers have the ability to make a loan. The platform studies their ability to pay pennies. This minimizes the risk of default.

The other significant risk is fraud. Some “scam artists” pretend to be lenders. They ask borrowers for a sum as collateral before even making the loan. In this case, it is everyone’s responsibility to pay attention.

In summary, the loan between individuals is an excellent deal for the lender. It allows him to lend money to his fellow men and to recover it later with interest. But beware of the risk of scams.

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