Surely you have ever heard about loans between people since although they are called in many ways, they are private credits .
And of all the credits that we see on offer, these fast loans are the ones that have grown the most.
For this reason, at MaoriArt we are going to give you our opinion about these loans between people with the aim that when the time comes you can make your financial decision.
We want you to know how it works in the market since everything seems to indicate that they will grow more and more.
Loans between people Why are they increasingly important?
They are because of how the financing sector is being structured.
If we analyze the different loans on the market, we will see how less and less banking entities position themselves as financial entities.
Of course, these banks will continue to make loans because that is their main activity, however their importance is decreasing.
Banks are still interested in lending money but after the last crisis in recent years they have become much more conservative in signing loans.
It has not only happened in the signing of mortgages and mortgage loans being what some believe, in personal loans it has also happened in the same way.
This has allowed the growth of calls as financial alternatives that ultimately have partly replaced banks in signing loans.
I would say both banks and financial credit institutions, because many of the online loans that we see now have replaced consumer loans.
Credits between people, Advantages and disadvantages
In our opinion, the main advantage is that we no longer depend on the usual financial institutions to get money because now we have alternatives.
If the bank rejects the operation, we should not be discouraged because we still have plenty of alternatives to access financing.
In addition, with the number of different financing companies that we see within private loans , the offer cannot be said to be reduced.
If you analyze the private capital market, this being the one seen in loans between people, we can see many financing options.
From private finance companies who are used to signing mortgages to those who, on the contrary, sign micro loans.
Virtually all the financing options that we see in here are processed through companies despite being private lenders who ultimately sign the operation.
Something that from our point of view many of the people who process these loans day after day are unaware.
In addition, these lenders when analyzing operations do not work in the same way that banks do.
That is why it is said that loans between individuals are more flexible.
As for the drawbacks, the only thing that we can point out as something negative about this financing is that they are more expensive.
As they are loans between people, investors will invest only in those profitable operations and therefore the cost for those who ask for the money will be higher