I want to borrow money, but please immediately. The best method is a P2P loan.
Behind this abbreviation are peer-to-peer loans. The loan is privately held privately through a P2P marketplace.
Suppose a consumer wants to borrow 3,500 euros. Because of his negative Schufa he has received a rejection from all banks. But he owns a small car with a market value of 4,000 euros.
If he loses his job, he could sell the car if necessary. That’s not an argument for the bank. One can say that the Schufa is an omnipotent exclusion criterion. For P2P loans, other criteria count: good arguments and a solid repayment plan are enough for some donors.
Money lends immediately – the human being is in the foreground
A bank works according to internal criteria. They should ensure the highest possible return . The focus is on mathematics and not on humans. The consultant must submit to this. Even if he understands your situation, he can not approve the loan. Otherwise he might lose his job.
The P2P marketplaces follow a different strategy. The portal auxmoney emphasizes that “the Schufa information only as one of many credit features” applies. Despite low Schufa, you can get a peer-to-peer loan.
For example, when you deposit a car as collateral. Here, the loan-to-value ratio (LTV) is crucial: In the above example, the car would bring in about 4,000 euros. Since the debt is only 3,500 euros, the P2P loan would be 100% covered. If the vehicle had a value of 1,000 euros, the LTV would be 29 percent.
I recommend you to deposit a security. That leaves a positive impression on the lenders. So you can borrow money, and immediately. You also benefit from a lower interest rate.
At the other screen sits a real person. He does not follow any mathematical system. Maybe he has designed his own strategy. There are more than enough lenders to look at the requests individually.
From application to payment
The application process takes a few days. Auxmoney even advertises in a few minutes. Borrow money and this is actually possible with P2P loans.
In 7 steps to the P2P loan
1. Register with the platform
Opt for a provider. Registration is mostly free, so do not take any risks. Enter your data and complete the application. Depending on the platform, you can receive a P2P loan of between € 500 and € 75,000.
The income and housing situation are relevant criteria. If you own a property, you can deposit it as security. And the salary is self-explanatory.
You can not pay monthly installments of 800 euros if you only earn 1,100 euros net. Exceptions are possible: it could be that you live with your parents. And then 800 euros a month would actually be feasible. Because the “Hotel Mama” comes up for accommodation and meals.
2. Borrow money immediately: Explain the request exactly
Try to create a loan project. The example shows how important a description is. Nobody would trust you a rate of 800 euros.
Finally, an apartment costs more than 300 euros per month. That would not be feasible with 1,100 euros. But with a few more sentences, the application appears significantly more serious. You have no expenses for rent and food. Borrowing the chance of money – and that immediately – increases significantly.
A plausible description can decide about grant or rejection!
3. Confirm the identity
As with a bank loan, proof of identity is necessary. For this purpose, the providers are required by law under the Money Laundering Act. This is done via the online or postident procedure.
Some portals instead confirm the identity with a short video call using a webcam. I think the Postident procedure is a good solution. All I have to do is go to the post office and present my ID card.
Also think about other documents such as deed of ownership. The borrower has to prove that security really belongs to him. In the car it would be the vehicle registration.
4. Wait for the answer and grading
P2P marketplaces divide borrowers into multiple levels. This serves to protect investors: This allows the lender to see at a glance how good the creditworthiness of a consumer is. It also determines the amount of interest. At Lendico, there are the following ratings, from A for “very good credit” descending:
- A: 2.00-4.84%
- B: 2.81-5.88%
- C: 3.88-8.72%
- D: 6.39-8.78%
- E: 6,46-8,80%
5. Activation on the marketplace
Now you can confirm the P2P loan. It is located in the desired marketplace for up to 30 days. Many loans are funded after a few seconds.
So you can borrow money and even immediately. I have described the first four steps in great detail. Some platforms like auxmoney are fast-paced. After 24 hours the complete application can be processed.
Theoretically, you can submit an application on multiple portals. In the end, you decide on the cheapest offer. According to the 14-day right of cancellation, you can withdraw from the contract within this period. There are no fees. Note this saving tip when borrowing money, even if it should go immediately.
Many loan inquiries can negatively affect your Schufa. On normal comparison portals, a “request credit” is often asked. In the long term, this leads to lower interest rates. The P2P portals circumvent this problem by using the trade-neutral credit request.
6. Payment of the P2P loan
Now you have to wait until enough investors have found each other. Many investors work with automobiles. This means that reasonable inquiries in low risk levels are supported immediately. Otherwise, you will have to wait a few days to get funding .
If it is missing to investors, that is not bad. Because you do not incur any additional costs. Only a permit will be charged.
Most P2P marketplaces allow you to reinstate the loan directly. In that case, I would advise you to change the description. You may be able to run your repayment schedule in more detail.
7. One month later
After a month, the first installment follows. Try to settle the repayment on time. So that you can lend money in the future as well.
Conclusion: Yes, borrow money immediately is possible
A financial imbalance can be remedied with a P2P loan. More and more people are investing in personal loans.
The reason: The savings book throws too low a return of 0.3% per year. On P2P marketplaces over 10% are possible. This is a big advantage for the borrower.
So you can borrow money and immediately. There are enough people willing to help you financially!