Loans between people have always been with us. In fact , a long time before the banks existed the particular individuals already left all of us money between us. All through history these practices are better or worse noticed according to the different epochs, however in any case it is something which is there and that we are unable to ignore.
Crucial to the operation of financial loans between individuals
With this blog we talk primarily about these types of credits, therefore it would be absurd not to begin by first explaining their simple concepts, what they are and how these people work. But first of all we should know a concept that is brand new and that is the key to the procedure of loans between people: the P2P.
What does P2P mean?
First, let’s briefly clarify what P2P is. The particular P2P concept comes from British peer to peer, translated straight into Castilian point to point. This particular concept derives from the systems for exchanging P2P data files. There are different applications plus protocols to use this type of systems whose fundamental principle would be to share files or details.
Loans among Individuals – P2P
At a time when credit score is highly restricted and delinquency rates have skyrocketed towards the peak of 1996, businesses and individuals seek conventional margin financing methods.
In this case, it is not regarding the dubious fast credits, the particular unification of debt or even of extending the home loan, but of a trend which has already spread throughout European countries and the United States but provides still barely set foot in The country of spain: personal loans between individuals or even individuals, from a strictly lawful point of view.
This really is summarized in that an individual can react directly as a bank, financing his money to a 3rd party and obtaining more advantage than he currently acquires for his deposits. To be able to obtain this, it advantages from platforms that offer the conversation and management necessary to create loans.
Procedure of the P2P Loans
The operation of these P2P loans is simple. You just need to enter as an user on the website that makes loans in between individuals in Spain, such as Fu Manchu. The amount is specific, the term in which you want to come back and the interest you are prepared to pay. From that instant on, the user will get different proposals from the loan provider users.
Regarding the lender / investor, you obtain a return on your money which is higher than any bank gives you for a deposit. The particular borrower, on the other hand, obtains credit at a much lower interest than the usual conventional financial institution would provide him and does not have to encounter any kind of commission. Finally, the particular intermediary, that is to say, the web page that serves to put in get in touch with and to carry out a power over the borrower and to confirm the information that the borrower provides, for which he charges the commission.
Eventually, these systems try to make use of the possibilities of interaction offered by the particular Network to skip towards the intermediary traditions that have up to now dominated the business. Its procedure has a lot to do with the particular rise of social networks on the web, since in the end they develop a community of alternative loan companies.
From a lawful point of view, in Spain there is nevertheless no specific regulation to manage this type of loans. They are usually performed through a private contract by which conditions are expressed plus which also serves in order to prove the existence of the mortgage, which on the other hand has a number of tax implications.
In the international market Great Finance, pioneer in this industry, and Good Lender would be the two main players within this newly created market of private loans. The first operates within five countries and has the database of more than 200, 500 users, which gives a sample from the boom that this business can be acquiring.