What is a personal loan?
The word “personal loan” has a double meaning and can be understood both as lending by a private person, as well as the lending to a private person. In the first case, the borrower receives from a private individual a certain sum with the obligation to repay them by a certain date. In addition, interest still to be paid can be agreed. However, lending by a private individual is not legally bound to any form and could even be made from a conversation with a declaratory effect. For the purpose of securing evidence, however, written form is usually preferred, especially when a sum of money is lent to a person who is not known.
In the latter case, a private individual receives a sum of money from a lender, which is usually the bank. But it can also be another institution or a private person acting as a lender.
Conditions and contractual components
Insofar as the repayment of the amount can be considered as secured by the bank, a bank also grants a non-bureaucratic personal loan without information . “Credit rating assumed” is then often the fine print in the advertising text of such offers. This means that the bank requires proof of regular income, usually the salary payment.
An information with the can be omitted then, if the security moves approximately in the amount of the loan paid out . For example, the pledge service of the car letter is often accepted as security. The bank may then, in the event of non-repayment of the loan, identify itself as the owner of the motor vehicle and sell it.
In the described case, the lender usually relies on a sound customer relationship without checking whether the borrower has any other payment obligations to other creditors. “Calculated risk” is then called such a loan without debt information. Their financial advantage is usually in the slightly higher interest income . Closing fees and commissions to be earned
Record repayment modalities
The borrower feels burdened by the usually higher interest or costs themselves hardly. There are written repayment agreements between the lender and the borrower. In addition to the personal and entrepreneurial data, this credit agreement then includes the agreed repayment term , the interest rate, the repayment installment and other costs. These can be amounts that allow for early loan repayment but also other fees. However, termination commissions are not included in the loan agreement.
Part of every credit agreement of credit companies is the payment or repayment plan. This provides information about the division of the individual installments into the interest amount and the repayment installment of the money made available. This obligation already arises from the need for the tax assessment of loan repayment amounts.
A personal loan without bureaucratic information can prove advantageous where lure opportunities that are quick to access. At a later date, an acquisition, if necessary, would be much more expensive than the interest payable on a personal loan.
The possibility of personal loan repayment is also widespread. And if lower interest rates would have to be paid in contrast to an existing loan, such a “redeployment” can also pay off. The open and hidden costs, however, should be included in this calculation . Credit institutions are bound by law to the letter in the granting of credit. The general terms and conditions show the framework conditions.
Reasons for borrowing
Anyone who wants to take out a loan without the assistance of can have different reasons for doing so. Either one already has negative entries and thus does not receive credit from many banks or, for other personal reasons, does not want to give any credit institution access to his data .
Another reason may be that you do not want credit to be recorded in . For these reasons, more and more people are looking for ways to borrow without a query. One possibility is personal loans, which are offered online on many platforms.
Disadvantages of the query
A query is like a complete disclosure of financial concerns . Each disposition frame used, each cell phone contract, each installment payment, each reminder and any credit of a cooperating with the credit institution is recorded there. It is irrelevant whether the installments are paid properly.
On the basis of the collected data so-called scores can be calculated, which give information about the payment morality (payment reminders necessary etc.). All these data are not negative at first, but they can still affect future loans. Each entry represents a liability that reduces disposable income and thus reduces creditworthiness.
If payment obligations are not met, this is noted as a so-called negative entry in the . Negative entries may have reverberating consequences for loan applications, housing applications or installment agreements.
Lending with negative
Most German credit institutions cooperate with the , ie they are obliged to examine the information and report assigned loans such as loans or Dispo exhaustion to the on. Negative reports are indications of a poor credit rating or an unreliable or poor payment behavior.
Since the repayment of loans is not guaranteed, the usual credit institutions therefore usually do not lend to a negative . The risk of failure is too big.
A personal loan is a lending of natural persons / individuals to other natural persons / individuals. These loans are also known as p2p loans (peer to peer = equal to the same).
Good to know:
As a rule, such p2p loans are applied for and allocated online on platforms designed for this purpose, which is why only little effort and bureaucracy is necessary.
Caution: Banks often advertise for the granting of personal loans, but do not mean the loan from private investors, but a bank loan for private use, a so-called consumer loan . Like other types of loans, these loans are usually linked to the test and thus unsuitable for potential borrowers with a negative .
Credit seekers register on p2p platforms and provide information on their lending needs and their financial situation. Based on this information, the platform determines the default risk for the investor when lending. In order to give even credit seekers with bad credit the possibility of a loan, the interest rates for the investors increase with the height of the risk.
So if you want to get as high interest income and the risk is not afraid, who will give his money to risk investors.
For credit seekers with bad credit ratings, this is an opportunity to obtain a loan, even if banks and savings banks decline because of the risk .
Personal loans without exam
The providers of p2p platforms also conduct credit checks for the safety of their investors . However, these are less stringent than those of usual banks and savings banks. A weak or poor credit rating is not a hindrance to personal loans.
Quite without query, however, online platforms do not grant personal loans. Otherwise the platforms would run the risk of finding investors . A negative leads here partly to the rejection of the credit concern, but not with all providers. Here, the exam represents only one component of the credit check, which is just as much or less significant as, for example, the income test.
For negative entries based on hardship cases such as bankruptcy (declared, official insolvency) or arrest warrants, loan applications will also be rejected on p2p platforms.
Tips for applying for personal loans
A personal loan without query is not possible. In the following, possibilities and alternatives for credit seekers are explained.
There are p2p providers, where a negative leads to a higher risk rating, but is not a reason for rejection. Of course, correspondingly high interest rates and thus not particularly favorable terms, but with little bureaucracy. So if you want to do without because of the risk of rejection because of negative entries on the query, which must fear no rejection of these providers.
Also, the likelihood of obtaining credit is not diminished by the lower credit rating , as riskier investments provide investors with an attractive opportunity for high returns. This creates a win-win situation.
German banks and savings banks always work together with the , so that loan seekers can not get free credit. Alternatively, foreign banks provide loans to German borrowers. Since they do not work with the , there is no query. However, a credit check is still carried out, but here the amount of the monthly income is in the foreground. In addition, a fixed employment relationship is mandatory, as foreign banks in the event of late payment, the employment wage seizure.
This type of loan is therefore not intended for fixed-term workers, the unemployed, pensioners, apprentices or students. Since most of these loans are provided by banks based in Switzerland, it is commonly referred to as “Swiss credit”.
If you do not want to get lost in the jungle of loan options, you can hire a loan broker to look for the best possible form of loan . Credit intermediaries usually have a broad network of smaller banks and foreign banks, so they can do the formalities and negotiate good terms. Intermediaries also know best how to bypass queries and make loan requests to foreign banks, which is needed for evidence and collateral.
A credit application can be made so quickly and smoothly . If the customer has decided on a loan offer, a commission for the brokerage is due, which is usually already charged and included in the monthly installments.
Attention: On the market, there are not only reputable providers but also a lot of black sheep. A credit broker who is already demanding money for advice or empty promises is unlikely to be reputable. Likewise, if he praises a loan guarantee despite missing income and bad creditworthiness. In choosing the mediator, one should look at one’s own chances realistically and not fall for foam.
If you have no collateral and a negative , you can borrow from the bank with a guarantor. Local banks are also willing to accept this deal, since they have the security of getting the loan back, even if the borrower no longer pays . The guarantor should be liquid and have collateral. His should be consistently positive.
A query finds in this variant, however, still take place, both the borrower and the guarantor.
5. private loan
An entirely different possibility is a private loan, for example from a family member, friend or acquaintance . The conditions can be designed individually and there is usually no query instead. However, agreements should be made in writing so that the lender can not suddenly claim all the money at once or the borrower can miss payments.