How do home loans work? Is it something honest and safe? The loan between individuals has its advantages and disadvantages. This form of loan is made through family or friends. It is an option for those people who can not or do not want to get involved with banking entities. In practice, it means that in the particular loan, one has money, and the other does not, but needs financial resources.
When opting for loans between individuals, great care is needed, because in addition to the money involved, there may be some misunderstanding between family members and friends, and this may end up negatively affecting the relationship of both. It is important to make clear how the whole process works such as: what are the deadlines to be met, the form of payment and interest. And of course, the most important: everything must be recorded on paper and be authenticated. Forget any “word of mouth” negotiations, no matter how much friend and trust you have. Even because if you want to do everything right, and avoid some hassle, obey these tips.
There are several types of loans available at the bank, but payment options as well as high interest rates do not always please people. By talking about this loan between individuals charges interest? Can be combined between parties. When there is the opportunity to borrow money from a private individual, many do, not least because it is better than helping a person get out of a financial meltdown and return to a quieter life.
Today it is very common to find indebted families, with restrictions on the name and negativadas in the financial system. Whether due to the crisis, debt that has gone out of control, lack of organization and financial planning. While the motives may be diverse, the option of lending privately can be a difficult decision, but in some cases it is achieved without interest and without involving many bureaucratic issues.
Another point to consider is that it is not because you do not have banking intervention and because the loan is without consultation and dirty name that does not need to have interest, the person who lends can put the interest that you want, unless it stipulates the value of 20% a month with moneylenders, then the other person may even look for a bank because there are no advantages.
In the face of so many details, the best there is is a contract, and both must agree! The document must first be legally recognized with mutual contracts, and obey the rules, even to provide protection on both parties involved. The contract must be well drafted and also contain the legal guarantees. To minimize the risks, find information on legal advice sites, so that all the issues of the transaction can be clear.
Do you need a private money loan agreement? Of course! Better be done to avoid future problems. Because? Although it seems to be a more practical way, it requires care. It is fundamental that a contract be made in which all business conditions, including legal guarantees, must be stated. In this contract between private parties must appear until the final date of payment. This becomes a way of securing both the debtor and the lender.
A common question is whether you can actually lend money to someone else and then enter interest. First it is worth clarifying that the loan between individuals is not prohibited by law, except when there is charging of abusive interest, which is not the case. If there is a charge above 12% per year, it is not considered an acceptable rate, and one of the parties may lodge a complaint.
The loan between individuals is trustworthy when registered, but must both parties have some care. First, check that interest rates can range from 3% to 5%, but do not go beyond that. Another issue is the definition of payment terms and the expiration date. You can choose can deposit or transfer. It is much safer to get the money in hand.
And unfortunately you can not let the situation get worse. So when the payment is not made you should look for the court instances, even if it is a friend or acquaintance of yours. This is one of the bad points, because in some cases it can end up spoiling a friendship and even family relationship, so the importance of making a legalized contract, signed by both so that there will be no future problems.
The loan between individuals is not illegal, it is a good way to get acquainted if they help, but it is important that they know the rules, know the interest charged, what can happen in case of non-payment, among others. Our intention is that you know that the more enlightened the contract, the better it is!
Recently was launched a site that will encourage people to lend money between individuals, the site was created by one of the largest businessmen in Brazil, Social Bank is not a bank and not financial, in fact fintech has been authorized to market digital payments account.
Social bank – social loan between staff in Brazil
The difference between Social Bank and other digital accounts is that users can negotiate loans directly between people. In addition to the social loan, we also have the peer to peer loan which is done by private investors who choose other people to borrow money through online platforms.