A credit score between individuals avoids banking institutions for some, to have more beneficial rates for others or the just possible to get a loan in most cases. Nevertheless, it is also the credit score where the scams are the many numerous.
Banking institutions lend and credit, as you may know, to make money.
If you feel about it a little bit, if a person could lend money to a different individual, everyone would be a champion, since the intermediary is the financial institution. The private lender could make available a sum of money for a price higher than the average yield associated with his book A, as well as the borrower has a credit in a lower rate than the exercise of the bank, and with much fewer formalities.
Exactly why is credit from private people not more developed in Italy, then?
Ignorance, for me, but especially because it is hard to relate those who want to lend with those who want to provide. In addition, we do not always want to risk his cash, a bank is much more comforting. This is why this type of loan happens to be mostly a matter of close friends or even family, but it is becoming a lot more democratic, we will see it.
Loans from person to person are subject to the rules associated with conventional loan agreements. Therefore, it is not necessary to exceed the particular prevailing rates of put on and to draft a behave specifying the terms associated with repayment.
The lending company who gives you a HAP credit (individual to individual) will also have to declare the particular income tax. The drafting from the act is mandatory over a certain amount (760 euros within 2017). You have to be very careful, should you not have a written act, the particular courts will consider it turned out not a loan, but a present: the lender will have lost their money.
A credit score between individuals develops using the internet. Increasingly, websites provide online credit, fast to obtain. A private lender can hence offer its financial help, earn interest, and save its investment. Indeed, the website is responsible for obtaining the necessary ensures. In addition, the loans are usually pooled, a particular lender may lend to several people simultaneously. This type of site is very popular in Anglo-Saxon countries, plus arrives in France. This particular new approach allows people to do without banking, to have independent credit, at least upon small sums of money.
The other way to obtain a credit score between individuals is the vendor credit.
It is merely a credit granted by the vendor of the property that one really wants to buy. It’s a pretty specific credit, mostly used by company buyers. The most telling illustration is a young butcher who would like to buy a butchery from their owner, who is retiring.
Crowdfunding, also known simply by its English name associated with crowdfunding ( “financing from the crowd”), meanwhile, proposes to assist those who have a project to find funding. It’s not really credited within the true sense, but rather a method to find investors willing to eliminate their money if the task does not work!
No requirement to dream of a particular lender real estate property, it does not exist, there is no wealthy who is ready to put on the line so much money to an unfamiliar person! It is the role of a financial institution to make large credits, a person will always have a hard time making a credit score without collateral.
We know that the French are especially cautious about money no longer exists, hit by the difficulties imposed from the banking regulators, but specifically by the simplicity to make a household loan, as you can read on the complete article on loved one’s credit.
Some other sites have been created considering that, mainly with Frederic Credit score. To learn more about this French corporation, I invite you to find out my interview with Jones Beylot, one of the founders of the company, and to watch their particular short presentation video.
It’s pretty marketing in form, and virtually against the banks. Somehow, all of the better, we can not declare most of the banks have been excellent responsible companies since the problems they caused.
Fredery Credit is getting up with the French backlog associated with companies like Zapox. Upon Zapox, if you are a loan provider, you say how much you wish to lend. If you are a customer, you say how much you need to borrow. Zapox takes care of the remainder. So you do not lend simply to one person, which reduces the danger for lenders. Zapox, or even Fredery Credit, are right here to serve as a “bank”. This type of practice therefore boosts the loan security. This is obviously the future of credit in my opinion, a lot more relevant than ever with all the rubbish that banks have done recently. Some even say that this would be the answer to the banking crisis. All of this new system is based on expert to peer (P2P), the immediate linking of individuals.
Small note on what to understand wear
We have the perfect to lend money, yet we must know that we don’t have the right to ask in substitution for the interest that is too high: over a certain amount, we practice usury, which is prohibited by the legislation.
Wear and tear describe the interest of a loan in the rate abusive.
In France, to protect people and businesses, Article D 313-3 of the Monetary plus Financial Code defines an interest rate of usury, which is the utmost effective rate of financial loans.
This optimum rate is recalculated quarterly by the Banque de Italy, which does so based on changes in the use of credit: the most is set at 133% from the average effective rate billed by credit institutions regarding credit operations. same class. Almost all types of business and private loans are taken into account: financial loans to buy an apartment, for example, financial loans to purchase a television, financial loans to finance studies…
Example: If the typical effective rate of a set rate loan is five. 87%, entities that give at a rate higher than 133%, for example, more than 7. 83% will be illegal, simply.
How to live without a financial institution
- The family mortgage
- Loan in between individuals, instructions for use
- The credit of the Functions Council
- Credit score granted to the buyer with the seller
- Create a credit in bitcoins
The credit score between individuals is really for your family, close friends. The other people do not trust to provide, or they are scammers!
To summarize, credit for people can be done with a close friend or even family, with whom the relationship of trust currently exists. To put everything within black and white, you must write a credit agreement or a debt recommendation. It’s legal, and your buddy, or your dad exactly who lends you money to purchase your house can perfectly ask you for an interest rate as if it had been a bank, as long as will not exceed the wear price in effect.
This type of loan is obviously perfect when no more bank desires to lend us money, whenever we do not have the necessary guarantees mainly because we are at RSA or even unemployed. We know that banks just lend to the rich… Lenders and other bank bans do not need to worry too: everything is founded on trust between individuals, so in retrospect, it happens especially along with friends. If you are sure to pay back, why not ask a relative, whilst showing him your great faith by having with you the written act having lawful force?
It must be understood that other people do not lend money, given that they do not have the confidence to get this done! Banks lend, but in a swap for many guarantees, sometimes extreme. If we do not fit in the little boxes, there is no loan. Same task for current sites associated with a loan between individuals, susceptible to the same rules as banking institutions.