Personal credit is a form of credit where the lender does not act as a commercial person, but rather a private individual. Donors are then not as usual credit institutions, but it can also be relatives or other third parties. Private lenders can not only be found in relatives or acquaintances. There are real credit exchanges on the internet. For the quick cash options this is the best deal now.
Lenders and borrowers can find each other here. The lender needs to be aware of its higher risk because creditworthiness is often more difficult to assess in this type of lending. The borrower will already have been rejected by the traditional lenders due to poorly rated creditworthiness. That’s what makes him want a private lender. It may happen that the personal loan is also used as a synonym for a consumer loan to private individuals. To preserve the character of a personal loan, the borrower may only use it for private and non-commercial purposes.
Formalities for installment loan
An installment loan does not have the same formalities as, for example, a consumer loan agreement. There are some rights for the borrower away. Furthermore, the personal loan usually contains no dismissal protection rules. Basically, personal credit is subject to freedom of form. The advantage of this is that it can be completed informally. The disadvantage of formlessness is that it can lead to proof problems in a recovery. Therefore, the personal loan should at least be concluded in writing. Furthermore, it