Private lending has recently begun to gain immense popularity. However, some people are still wary of such loans. This is not surprising, because the principle of such lending is that an individual takes money from another person at interest. In this case, a loan agreement is not concluded, but only a receipt is drawn up.
On the one hand, it is beneficial. Private lenders who give money against receipt receive profit, and the borrower does not have to provide a package of documents. However, today in this area there are also many scammers, so you need to be extremely careful.
What is a private loan?
Many believe that a loan can only be obtained at a bank or microfinance organization. However, you can get money from another person, that is, an individual.
If we talk about where to find them, as a rule, in reviews of private lenders, people pay attention to various online message boards, as well as profile sites. Basically, such loans are found through search engines. Some turn to friends or even bosses at work.
Offers to borrow money on receipt are found in advertisements of print newspapers, magazines and other things. Others even print out their proposals and paste them on poles around the city. All of these ads are very similar.
As a rule, in this case, interest is not required to be paid every month. Only the final amount. However, it still takes into account the period for which the borrower received the money. The longer the term, the greater the overpayment.
Disadvantages of private lenders lending money
First of all, of course, the main danger is that you can easily stumble upon a scammer. This means that as soon as the documents are signed, the person does not receive any money or any other fraud is carried out. Also in this case, you rarely have to rely on a long loan term. Cash is issued for several months, or even weeks. Moreover, in most cases, interest rates are quite high.
Also, many users in their reviews of private lenders draw attention to the fact that with such loans, interest is calculated not on the balance of the debt, but on the initial amount that was borrowed. In addition, the proposals vary greatly, and the conditions seem painfully dubious. However, one thing must be understood. It is impossible to take money from private lenders who simply offer to make a written receipt without the presence of a notary.
Also, many note that some individuals who offer money on loan feel when a person needs money very urgently. In this case, they offer to provide funds at too high interest rates, and they are forced to pay as soon as possible.
If we talk about reviews of real private lenders. Then they are usually found on official services specializing in this field. As a rule, on such sites all the necessary information about possible fraudsters and useful tips on the correct execution of the transaction are provided. Where to find a private lender? As users note, it’s best to search the Internet. In this case, you can find all the necessary information and, if possible, get acquainted with the reviews of other customers.
What must be indicated on the receipt
You need to understand that a notary public may also be fraudulent, so you should carefully read all the documents that are given for signature. The notarial receipt must indicate the exact date by which the debt must be returned. In addition, a certain amount of money is received that the borrower receives. On paper, the date of compilation of the document must be affixed. And in order to identify the receipt and correlate it with the participants in the transaction, the exact passport data, surnames, first names, and patronymic addresses of all parties are written off.
Although the receipt is not a credit document, it is still a very important paper, which in case of problems can save you from financial collapse.
How not to stumble upon a scammer
Getting borrowed money against a receipt, there is always a risk of encountering a person who fraudulently wants to seize the money of a gullible client. It should be understood that, by and large, a private individual can not give out any loans. Accordingly, the word “loan” is never indicated on the receipt.
As a rule, a document only says that one person has provided funds to another. This is a rather controversial document, in which there may be many nuances.
It is also worth being extremely vigilant during the procedure for receiving money. First, it is necessary for the lender to transfer the full amount to the borrower, and only after that the receipt documents are drawn up. For a transaction to be considered clean, everything must happen in front of a notary public.
How people are often deceived
Users in their reviews (who and where took money from private lenders) advise to pay attention to the fact that some fraudsters offer to formalize all relations first and only then give money. In no case should you agree to such manipulations. In this case, even if the borrower does not receive any loan, he will still be obliged to return the money, which he did not even have in his hands, since the document has already been drawn up according to all the rules.
In other reviews of private lenders, users share another scheme that fraudsters can use. They say that they cannot be sure that the person will return the entire loan to them, therefore they require a minimum prepayment. It is assumed that after this a receipt is drawn up and the client receives the money. In fact, the fraudster simply disappears, and the client is left with nothing.
Do not fall for tricks
There is also another very common fraud scheme. It consists in the fact that initially the scammer requires the borrower access to his bank card or virtual wallet. He promises that he will transfer money to them. In fact, he really does. It transfers funds, after which a notarized receipt is drawn up. However, a second after this, the fraudster withdraws all funds, and the client still owes him.
In addition, you must understand that when it comes to the monthly repayment of such a debt, then this must be indicated on the receipt. If it says that the entire amount will be returned on a certain date of a certain year, and the creditor requires payments every month, then in this case there is a risk of paying the full amount twice.
There are many more ways to cheat. Therefore, borrowing money from a private lender, you need to carefully check the reviews about this or that person. That is why users do not recommend using ads from poles on the street and not using newspapers. It is better to find a service that acts as an intermediary and is ready to accompany the user with at least minimal information about the lender.
Helpful information
First of all, a notary certifies a document that states the transfer of funds. Moreover, the receipt does not indicate any percentages. However, in order for the initial amount to converge with the final amount, you have to enter immediately the amount of cash, taking into account the overpayment. As a result, the client receives, of course, a smaller amount.
Many in their reviews of private lenders say that such a procedure is more like a fraudulent one. But actually it is not. In this case, there is no talk of any deception. This is necessary in order to protect all participants in the transaction. Otherwise, such an activity may be considered a serious violation that would entail administrative or even criminal liability.
Why it happens
If you specify only the initial amount and simply agree on the words of interest, the lender himself will be in an uncomfortable position. After all, the borrower can repay the debt to him without interest by providing an appropriate receipt. Therefore, usually both persons come to the only legal way that will protect the interests of both parties. As a result, the borrower receives the money, as agreed, and then returns them with interest. But they do not appear on the receipt. Just so as not to break the law.
Why is it profitable to borrow money from private lenders
If we talk about the feedback of users who found private lenders on the Internet or simply contacted friends or people whom they at least remotely know, then first of all everyone pays attention to the fact that such a deal is very beneficial for those who already have a damaged credit history . In addition, the advantages are that very often such creditors agree that the client will not make any monthly payments. If the borrower took 50,000 rubles from a private person for six months, then he can return the money only after 6 months or any other period. In this case, you can seriously improve your financial situation and get out of a difficult situation.
In addition, in such situations, there are no penalties. In banks, for every minimum delay, you have to pay pretty decent amounts.
Another plus is that you do not need to prepare any additional documents for such a transaction. Enough passport.
What is the percentage of overpayment
According to user reviews, the final overpayment can be completely different. Someone is very lucky, and they pay only symbolic interest. Others have to give almost 2 times more. However, according to statistics and numerous user reviews, which have already encountered private lenders, the average figure is about 3% per month. Although the amount is usually issued only 1 time and is returned in full, interest is usually taken into account depending on how much the borrower did not repay. Accordingly, it is much more profitable to return the funds as quickly as possible.
Finally
To take or not to take money from a private lender, everyone decides independently. However, in this area today there are a huge number of scammers. Therefore, if possible, it is better to consider banking offers.