Lending money has become an integral part of life. Previously, there was a certain stigma attached to it, especially when borrowing money from family members or friends. Anyone who indulged in it entered the risk that their relationship would irreversibly change. Even today, it is no better, which is why people prefer to look for loans to private individuals to banks and credit houses than to families. Main reason? – have no desire or will to explain why they need the money they have spent on what they have earned.
Financial institutions do not stare at intimacy, while with loved ones this is almost inevitable. And with that people are not ready to fight especially if their financial situation is not best. The idea that they will have to explain what they will spend their money on and justify why they did something is what turns them off in every way.
Retail loans: What does the bank look out for and what does the credit house look like?
Banks and lending companies have loans to private individuals . It is a special money-lending financial service with a short repayment term. Most often, these are smaller amounts of money for which documentation is minimized. Or so it is at least when it comes to credit houses.
By contrast, banks still check the creditworthiness of clients, while credit houses rely on financial orderliness.
The most important thing for them is that the client has a regular income and regularly settles his debts so that he can repay the loans to natural persons . Banks also check the indebtedness of the client with other banks, the type of employment as well as the employer itself. Many find it difficult to get a loan from individuals because they are employed on a fixed-term contract or their employer is not at their best.
Credit houses are more liberal in this regard and their most important client. Given that loans without a bank are smaller, a detailed search is not even needed as it does not pose too much risk for credit homes. Banks have softened in their demands, but they are still much more rigorous than others in the market.
Retail loans: What does the employer offer?
Retail loans are not reserved only for financial institutions. Employers also have the option of lending to their workers. But there is one catch. The state regulates interest and it is inevitable. The minimum interest rate on loans to individuals may not be less than three percent per year. Everything else is subject to penalties.
The employee, as well as the method and method of repayment, agree with his employer. Most often, these are smaller amounts that a worker can recover quickly. The most popular are repayment options in monthly annuities, and less popular are one-off loans to individuals.