What are social loans and how to apply for them?
People who need financial support have a wide range of choices. In addition to a bank loan, short-term payday loans or installment loans from non-bank companies are also available. However, social loans, which are an alternative to traditional financial products, are becoming more and more popular. What is this form of financing and how to use it?
Social loans – what is it?
Social loans, i.e. social lending, are not new to the market, but they are not as popular as standard loans and payday loans. They constitute a form of financial support that is granted between individuals without the participation of a bank or loan company.
The loan agreement is concluded via dedicated internet platforms, where private investors submit their offers. They grant loans on specific terms, by themselves determining the amount and interest rate.
Who is social lending?
Social loans are a beneficial solution for both parties to the transaction. It is a safe way to invest capital and earn interest. Additionally, this form of loan can be used by people who cannot take advantage of traditional loans and credits due to their financial situation.
Although platforms intermediating in such offers verify the credit history of potential borrowers, the decision to withdraw money is up to the private investor. It is, therefore, a great solution for those in debt, as individual terms of cooperation can be negotiated. It is also a good alternative for companies that need a quick injection of extra cash and wants to avoid the formalities typical of bank loans.
What are social loans?
The entire loan process is carried out through special platforms. One of the largest is the Mutual Loans Association, which acts as an intermediary in concluding transactions between investors and borrowers. Just register your account there to get access to current offers.
Users’ data are checked for reliability, which guarantees security for both parties to the transaction. Mutual loans are usually granted for 30 days, however, repayment terms can be negotiated or the payment deadline can be extended if necessary.
Throughout the world, social loans are an important pillar of financial services. However, Poland is a country where traditional loans from non-bank companies are still more popular. By analyzing the current lenders ranking, you can find an offer tailored to your abilities and receive payday loans on attractive terms.
The non-bank market is characterized by high flexibility, so you will easily find a loan with a low-interest rate, extended repayment period and minimal formalities.