P2P loans, what are its advantages and disadvantages

The first service to lend money between people was established in early 2008 in America. Over one million people borrowed here in one calendar year. Even Google has a stake in this company.

P2P loans are very popular abroad most in Germany and the UK. There are several companies that provide this service in the Czech Republic.

Is this type of loan safe?

cash

We can say for sure that it is. The provider of P2P loans is supervised by the Good Finance Bank. You do not have to worry about fraud.

Possibility of investing

money

Of course, you can also sign up for this service as an investor and lend to others. You will get an interesting appreciation of your finances. This service is anonymous so that debtors are not “threatened”. Only providers, not creditors, know your identity.

What do I get?

cash

If you apply for a P2P loan you can achieve better conditions than in a bank. Loans start at 2.99% pa, which is really advantageous. As an investor, you have the opportunity to appreciate from 2 – 12% per year. This service is an interesting diversification of the market for non-bank products.

You can also apply for refinancing of existing liabilities such as overdraft, credit cards or leasing. If you are a starting entrepreneur and do not lend you at the bank, they are a great way to raise enough capital.

It does not matter whether you want to borrow for home, new car, electronics or even for travel. Keep in mind that investing is not risk-free and there is a risk of losing the entire deposit.

Does it really lend to everyone?

money

Citizens of the Czech Republic and foreigners can get the loan. Of course you must be over 18 years of age. As a general rule, two identity documents are required: ID and passport or driving license.

A stable, documentable income is required. Unfortunately, if you are under execution or you are insolvent, you are not entitled to this type of loan.

If you are long-term unemployed, the chance of getting a loan is almost zero. This approach is understandable because it has to protect investors to some extent so that you do not often lose your money.

Would you like to compare more services such as MTPL, mortgage or accident insurance? An online grader called MicroCredit allows you to do this.