Are you looking for an alternative to a bank loan or a short-term online loan? Read what private loans from individuals with adequate financial resources are.
Situations in which expenses are financed by wealthy family members or friends are very rare – yes, everyday practice is borrowing from parents, brother or father-in-law smaller or larger amounts that are not interest-bearing at all, but only some can afford it.
Who are the loans from private individuals?
Poles are much less likely to take private loans from friends – this is due to, on the one hand, the lack of trust of people who have money to borrow them ‘forever’, and on the other for reasons of honor.
Many people prefer to borrow cash from an independent institution because they care about discretion. Until their life situation forces them, they will not ask for money from friends.
And such situations, unfortunately, happen – they are usually a sudden illness, job loss or another random event that makes you quickly need a certain amount of money. The vast majority of Poles do not have deposits and do not save their money for a rainy day, because it is prevented by daily expenses and low wages.
A private loan from a third party – what is it?
A private loan is a product that allows you to borrow from a private person an amount that would not be available to you in the bank or in most loan companies due to your creditworthiness. In this case, the provisions of the Civil Code, which emphasize that a given private person granting the loan must be the owner of the borrowed funds, apply.
A private loan is a loan taken from a natural person who has financial resources and wants to borrow them under certain conditions. In such cases, the rules governing banks or non-bank institutions and the limits they set apply no longer.
The terms for a loan from private individuals are agreed between the lender and the borrower, but if the amount borrowed is higher than USD 500, they must be recorded in the form of a contract. The parties provide the loan amount, interest rate, any commission, contractual penalties, as well as the type of collateral in the event of lack of timely repayment.
Private loans – where to look for them?
You can get loans from individuals. One form is ads published in the press or hung on listener listings. The most popular marketing slogans are private instant loans or private loans immediately.
However, you should be vigilant with this type of advertisement, because very often similar offers have an unfavorable interest rate and large penalties charged in the event of failure to meet the repayment deadline.
A much better way is to search for ads on the Internet on special forums or sites dedicated to so-called social loans. After registration and verification, you publish your advertisement on the website and simply wait for offers – this gives you much more choice.
Private loans – advantages and disadvantages
Private loans from private individuals have the advantage that you do not need any earnings or employment certificates, but only your ID card.
Private loans are immediately issued – even within an hour – and the amounts may be much higher than for the sums offered by loan companies, where the upper limit is usually USD 15,000. The repayment period may also be longer than for loan companies, where they are a maximum of 3 years.
Civil law says that the person granting the loan may withdraw from the contract and refuse to issue the subject of the loan when the return of the loan is doubtful due to the poor financial status of the other party.
However, the lender cannot do this if, at the time of the conclusion of the contract, he knew or was able to find out about the poor financial status of the borrower. The claims of the borrower for the money promised in the contract expire after 6 months – after that time the lender is not required to issue the loan.
The borrower’s obligations expire after 3 years. Pursuant to the law, the borrower may withdraw from the contract without giving reasons within 10 days of its signing, or may repay it before the deadline specified in the contract.
However, if the borrower has not paid the full installments of the loan on the agreed dates for at least two payment periods, the lender may terminate the contract after prior summoning the consumer, in the manner specified in the contract, to pay the outstanding installments or their parts within not less than 7 days of receiving the call under pain of terminating the contract. The contract notice period may not be less than 30 days.