Loans from a private lender to a private borrower
Loans for people with a low income, a negative Credit bureau or even unemployment are no longer only offered by banks and online banks. Among the credit providers, there is an increasing number of credit intermediaries and financial service providers who broker loans from a private lender to a private borrower.
With the spread of the Internet in private households, the supply of personal loans has increased significantly. Loans for private unemployed can be securely applied for and processed on schedule thanks to credit intermediaries and financial service providers on the Internet. Borrowers who are unemployed can above all benefit from the advantage that the interest conditions depend mainly on the agreements between the two contracting parties; the credit broker often only specifies a certain interest rate framework.
The credit broker collects a commission for its brokering services, which can vary from provider to provider. Before the contract is concluded, a comparison of the individual providers should always be made. The Internet with its numerous financial portals lends itself to comparison today, here a comparison is free of charge and objectively possible.
Loans for unemployed people from private individuals
This is how lending works through a credit intermediary.
Lending through a private credit broker is similar to lending from an (online) bank. In order to be able to take out a loan, the borrower has to provide some personal and financial information. Borrowers should, if possible, name other means of securing credit.
Borrowers who are unemployed in particular can significantly improve their creditworthiness in this way. Most intermediaries and financial service providers do not obtain Credit bureau information. On the other hand, a well-known partner bank is often consulted to determine the creditworthiness. A ranking / scoring is then created on the basis of the credit check, depending on which the borrower can then select the loan offers.
When it comes to lending itself, two different models with opposing approaches have been established in the past. As with “classic borrowing” at many banks, the borrower also has the option of formulating the loan request independently when taking out a personal loan from a credit intermediary. When the loan product is advertised, the borrower can then provide information on income or social income in the event of unemployment.
Lenders have the opportunity to offer the corresponding loan offer and to bid for it. A contract is only concluded if the borrower agrees to the terms and conditions of the lender’s proposed interest rate.
Another procedure involves the tendering of a loan by the lender. The procedure includes both term, loan amount, repayment, use and much more. specified. Loans for unemployed people in this way should be “used with caution” by unemployed borrowers, especially for low-wage earners and the unemployed should definitely make use of the option of individual loan arrangements.