If you need money and want to take out a loan, you can go to various places.
Here we discuss the most common lenders and tell you what the pros and cons of the type of provider are concerned.
Option 1: Loan companies
One of the most popular places to turn to for a loan remains ‘Private loan company’. Of course this does not refer to a specific person: with a so-called ‘Private loan company’ loan is meant a private loan (not to be confused with a personal loan!) Of a relative or a close friend. Almost everyone has, recently or longer ago, borrowed some money from his or her parents. And also uncles, aunts or friends who have more to spend, often like to lend a helping hand to someone they know well in times of need.
The advantage, of course, is that closing a loan with friends or family is easy and usually you will not have to pay interest on the loan. A disadvantage, however, is that sometimes problems can arise. When you can not pay the money back in time, or when the person who lent you the money suddenly needs extra money and wants the money back.
You can prevent the personal relationship from being put under pressure by, for example, putting things down on paper, by keeping it at small loan amounts, or by abandoning it entirely and by going to a commercial lender. .
Option 2: The bank
Outside the own family and circle of friends, the best-known lender is still the bank. Although many banks are no longer generous with the distribution of loans since the crisis, most people go here first when they want to take out a loan for, for example, a renovation or the purchase of something precious or when they are looking for a loan. suitable mortgage.
The advantage of borrowing from your bank is that you can keep your finances in one place. That is clear and you may have a familiar feeling with your own bank. Banks, for example, are not in the news as some providers of payday loans and when you have complaints, you can relatively easily denounce the situation. A bank has a lot of know-how and you get extensive information.
A disadvantage of banks is that they therefore less quickly approve an application for a loan than before. They will also want a lot of information from you before they make a decision and there is a chance that you can borrow a smaller amount than you want or that your application will even be rejected.
Option 3: Other lenders / private lenders
If you can not or do not want to take out a loan with your family or the bank, there are countless other lenders you can go to. These are usually private and specialized providers of loans that derive their income from, among other things, the interest and borrowing costs that people pay on their loans.
There are lenders where you can only go for small loans up to a few hundred euros but there are also providers where you can get up to a few tons, depending on your ability to pay the loan.
The advantage of this enormous offer is that you can almost always get a loan somewhere, even if you have received zero from the bank. A disadvantage is that sometimes, especially in the case of mini- credits or loans where no income check or BKR check is carried out, there may be higher interest rates or unfavorable loan conditions.
Now there are a lot of ghost stories about usurers but you can exclude the risks by carrying out thorough research into the lender you have in mind. Search for experiences of other borrowers on the internet, track consumer websites for information, inquire about permits and check with an umbrella organization.