Borrowing money privately and getting an instant loan without a bank, is that possible?
Money – what’s behind this name anyway?
The Internet platform “Money” offers the possibility to borrow from private investors as a private individual in order to use this money to finance their own projects. Thus, the platform beckons with the opportunity to bypass the bank and usually get even more favorable terms.
For settlement, Money works together with a “real” partner bank. The latter withdraws the agreed installments from the borrower’s account for repayment of the loan and pays them out to the investors. Also Money gets a small commission for the mediation service. Payment of this commission is also covered by the monthly installment.
Money loan expiration – How is the Money loan brokered exactly?
After logging in, a description of the personal loan project will be posted online. Submitting this request is free, without obligation and thus risk-free, which could be confirmed by “financial test”. The information required for this purpose is limited to the desired loan amount and the intended use. Personal information, on the other hand, will not be published, thereby preserving anonymity investors.
Money, on the other hand, checks each prospective borrower for his identity and credit rating. The result of this check is visible next to the “Financial Report” with information on the person’s in and out as “credit information” for private investors on the description page. The online loan portal assigns each borrower a credit-worthy, so-called “Money score” and sets on the basis of an interest rate for the loan project.
After this check, private investors can already sign up to finance the desired loan. Usually, within just a few days, enough investors agree to finance a portion of the desired loan on the basis of the loan project description. The investor then receives a message via e-mail. With the signature on the credit agreement, the financing will be finally “waterproof”.
What requirements do I have to bring as a borrower at Money?
Basically, anyone can take out a loan for their very own project at Money – both private individuals who want to rebuild their home, as well as self-employed or StartUps who need a financial basis.
To ensure that private investors get their money back, Money conducts a credit check on every borrower, the result of which must be positive.
Credit requirements at Money
- At least 18 years old
- Residence in Germany
- German bank account
- regular income or other collateral
- no credit for hard negative characteristics in the Credit bureau (insolvency, affidavit, open titled claims or arrest warrant)
How do I increase my chances of getting a personal loan from Money?
The more personal information you reveal about yourself and your intended project, the higher the likelihood that private investors will trust credit. After all, they have a choice who they want to entrust their money to. It is therefore of great advantage, a small self-description and a few words about the planned project and if possible also upload a picture of yourself. In this description, the borrower should be as sympathetic, reliable and repayable to the readers act. However, as the mass of investors is broad and diverse, the description should nevertheless remain more general.
Also, a good Money score, ie a good credit rating, creates trust on the part of investors in the borrower, as well as personal information about their own work. Particularly good are reliable and long-term employment relationships.