Personal loans are a sensible alternative to bank loans. They are particularly suitable for smaller amounts that are needed in the short term, but can also be awarded for larger amounts.

A personal loan is always concluded between two private persons. Term, interest and repayment are exclusively a matter of negotiation of the two parties. In general, a personal loan between two known persons is the most flexible loan that is available at all. Special repayments or payment pauses are often much easier to negotiate than with banks.

In addition, lending by private individuals sometimes leads to significantly cheaper loans, but in individual cases can also result in credit conditions being detrimental to the borrower as compared to credit institutions. For both parties, it is highly recommended to fix the framework conditions in writing. This protects both parties in case of discrepancies or default.

Meanwhile, there are also several online portals that provide personal loans. The investors do not have to raise the full loan amount, but can divide their capital among several borrowers. This reduces the risk of payment default. On the other hand, borrowers benefit from lower interest rates and a credit check that does not require Private credit.

A personal loan is therefore not only suitable for people who do not receive credit from their bank. On the contrary, he can offer very attractive conditions. However, in the case of a loan from friends, acquaintances or relatives, both parties should consider carefully whether this option really makes sense. Frequently, relationships change negatively as financial interests come into play, and especially the inability to repay the loan can cause lasting damage.