Private money lending has many advantages over the bank loan offered here. It is unbureaucratic, fewer questions are asked, even with difficult income relationships and with moderate or poor creditworthiness, a personal loan is possible. Credit marketplaces have dedicated themselves to these advantages on the Internet and created a new credit model from them: online loans without a bank. The pioneers include the major market leaders trucredit and creditity.
The participants in the credit marketplaces for personal loans
On the one hand, there is the operator of the online platform, e.g. trucredit, who works with a partner bank. This partner bank is responsible for the legally and financially correct processing of the loans, it organizes and manages the funds in general as well as the repayment to the individual lenders. However, this partner bank does not make any loan amounts available and does not decide on loan applications, which is why the term online loan without a bank is therefore appropriate.
The key players in the credit marketplaces are private investors or lenders on the one hand and people looking for a loan on the other. This can be private individuals as well as the self-employed, freelancers or companies. Creditity also offers companies the opportunity to act as investors.
Anyone can submit a loan application online in the credit marketplaces. The loans are set up as installment loans, the borrowers can choose from various options for the terms, and the loan amount can also be freely determined. The borrowing rate at which the loan is granted and which investors receive as a return is determined on the basis of the credit seeker’s creditworthiness for each loan project. Any bad creditworthiness can also be compensated for by a higher interest rate on these credit marketplaces. Several investors can bid on any loan application with any amount. Many small amounts make it easier to realize large loan amounts.
Advantages of online credit without a bank
Even marginalized groups who have little chance of getting a loan from the banks can get a loan through convincing loan applications that are emotionally moving and rely on the understanding of investors. These include, for example, the unemployed, single parents, freelancers, start-ups, mini-jobbers and low-income earners.
Investors who have been in a critical financial situation themselves are more understanding than banks, where personal fate is usually left out. Loan seekers can also do without the hodgepodge of documents and documents that banks would like to see with a private loan. Both investors and loan seekers benefit equally from credit marketplaces such as trucredit and creditity.