Want to get a loan from people? Nothing special! Loans from people can be up to several times cheaper than instant loans. The interest rate on such loans often does not exceed 7% per annum.
This is a very small number given the fact that the quick credits can be several tens of percent. They are also granted in larger amounts than the latter. For example, a regular loan can amount to as much as $ 10,000.
But in principle, they are very similar to instant loans
That’s why their demand is so high. For such an emergency loan but without having to pay high-interest rates, loans from people are the best alternative. Like instant loans, these are also unsecured. Like other unsecured loans, people loans are issued relatively quickly. Usually, it is issued much faster than a consumer loan.
In fact, it is not even necessary to dive straight into these platforms. It’s much easier to start with ready-made offers for such credits and compare them all on one page (a feature we certainly offer). Then the credits from the people and the terms they offer will be absorbed much faster and easier.
Loans of this category are also special because they provide access to refinancing. None other than loan refinancing is one of the main reasons why their popularity is growing so rapidly. Refinancing rates can be even lower and start as low as 5%. Although you can find it today at most lenders on offer, people refinancing is exceptional for its cheapness and simplicity.
Why are loans from people cheaper?
At first glance, this may seem very strange. Why should individuals lend at lower interest rates or better terms in general? Unlike in the case of regular companies, the individual takes more risk and concentrates it. It would have to be natural for the interest rate to be much higher in order to pay off the higher risk, right?
This may seem logical, but only if it is not understood as giving out loans from people. If it was one person that would cover the entire loan amount, then yes, it would make sense. But today the reality is quite different. People lend mostly to unmarried people, but through the aforementioned peer-to-peer lending platforms.
In them, one loan is issued not by one person but by many. Any single loan is financed by at least several dozen individuals. If the loan is larger, this figure can go up to a hundred. In this way, each different person risks only a very small amount of their assets. Usually, he distributes his invested assets evenly across many different loans.
That does not explain why credit from people is so much cheaper than regular instant loans online. The answer lies in the very process of issuing such a loan. It is not enough for every person who wants to make a loan just to choose to contribute one amount or another. This is not enough as the whole process is competitive. Each person offers his or her own interest rate at which he or she would like to lend to the person in question. Only the people who offer the lowest interest rate can participate in the final loan process.
Competition is huge
Hundreds of people are simultaneously involved in such a loan. This guarantees that the interest rate will fall until it reaches the lowest possible level at which borrowers appear. It depends on many factors: loan amount, risk, available liabilities, credit history, etc. But in the end, loans from people are still comparatively cheaper than instant loans.
You can find out more about how and where to look for loans from people on a similar Amcredit.lt specialty page. In addition to all this, you will also find the very best loan deals that are already selected and offered. It’s best to even compare a few pages like this so you know if the people’s credit offers actually meet the conditions shown. Better yet, just visit the relevant platform page and verify for yourself the information!
Important: You can often find people offering to borrow from individuals on various ad portals or comment sections. Do not trust them as these ads are usually deceptive! First of all, you should pay attention to whether the ad is written in the correct Lithuanian language: if it looks artificial, then it is just a phony, trying to lure your money. In all cases, it is advisable to use only peer-to-peer lending platforms as they are supervised by the relevant authorities and therefore you can have no doubts about their security and legality.