What is a bankless credit?
Credit without banks, or loans between individuals, is born of the emergence of a new economic model, namely the sharing economy, which is based on the exchange of goods or services between individuals. This new model also has repercussions on the world of finance, which is transforming itself and trying to integrate digitization and community spirit into its way of working. Collaborative finance thus defies the traditional banking system, leaving room for an alternative mode of financing.
The loan between individuals is financed by private investors. To apply for credit, you must go through an online platform, where you have the opportunity to describe your project and indicate the amount needed to achieve it. Private lenders consult credit applications one by one and choose where to inject their money. To reduce the risk of non-repayment, it is typical that they only finance part of the project, usually a part of the amount. Your loan is therefore financed by several people: it is the altruism of these investors that allows your project to come to life, through a credit without a bank.
How do loans between individuals work?
The loan between private individual allows to obtain a credit without bank: it is private investors who finance your project. The principle of lending by particular lender is relatively simple and little different from the traditional banking system. Indeed, you will need, as when you go through a bank, provide some credentials to the particular lender that you can however provide online without having to move. As for a traditional credit, you must be at least 18 years old, can not have credit contentious or be registered at the Centre Credit to Individuals. This type of loan can be useful for car financing for example.
The particular lender specifies in advance what amount it can lend by paying interest. The interest rate varies depending on the amount, the repayment term, the risk associated with the credit without a bank and the applicant’s loan history. The choice is up to him to decide who he wants to credit. Downstream, the borrower specifies the desired amount, the project to be financed and provides the following information: income, family situation, credit history, etc.
Is it possible to obtain credit without a bank?
The answer is yes. Today, collaborative finance takes more space than ever before in the world of finance and is growing very fast. Thus, you can find in Belgium online platforms allowing you to perform a simulation loan and then apply for credit without a bank with a particular lender. Conversely, it is also possible to invest in individual projects. The pioneer of personal loans in Belgium remains, which was launched in 2015 and offers different types of personal loans.
How to find a credit between serious individuals?
There are unfortunately many malicious people on the net who are likely to offer easy loans, quick to get and the amount you want without asking for proof. Be aware, however, that no legitimate financial institution will grant you a loan without first consulting your income. The techniques to gain your trust are different, but the goal remains the same: you extort money. To spot scams online, be careful of the following signs, which should immediately alert you:
- The site of the particular lender does not start with “https: //” and is therefore not secure
- The lender does not have a physical address
- The credit institution is not registered with the FSMA (Financial Services and Markets Authority)
- No proof of income is required
As you will have understood, it is essential to go to a certified platform to obtain credit without a bank, via a particular lender. To learn more about online scams, feel free to read our article on this topic.
What can I finance with a personal loan?
Personal loans are personal loans. These are credits for which you decide the amount needed and do not have to justify your purchases, unlike the assigned loan, which requires a proof of the object or service you want to acquire. These personal loans allow you to finance a car, the renovation of your kitchen, a trip, a wedding. And many more. To find the one that suits you, compare loans between individuals on Comparatorgo.
What are the advantages of credit through a particular lender?
The loan between individuals allows to limit the costs of banking intermediation and refinancing. In fact, the APR or Global Annual Effective Rate also includes your file processing fees. Since your request is online, they are lower. Online peer-to-peer lending platforms also offer some unique rewards. For example, Passare offers a discount to people repaying their credit on time. The loan between individuals can also be a solution for people in difficulty and can not qualify for a loan from a conventional credit company.
Can I get credit without a bank if I am blacklisted by the national bank?
In Belgium, if you go through a platform of loans between individuals, it is not possible to obtain credit without a bank if you are negatively listed at the Centre Credit to Individuals. However, it is possible to get credit from someone in your family or circle of friends. In this case, having a notarized loan contract is recommended because it provides additional security for both partie