Loan between individuals - Borrow money without banks
You can get a loan without going through a bank. It has become a popular formula among a section of the population. It is a recourse for people registered in the FICP of the Bank of United States for banking incidence, but also for people who simply wish to obtain credit to individuals. An individual borrows money from an individual. The system called social credit or community credit or p2p credit is adopted and is now called PAP credit or individual to individual credit . This formula has taken root among low-income households. It is a substitute for family loans which are based on kinship ties.
The use of credit between individuals
Personal credit works on the basis of trust and profitability. It is especially aimed at people who are socially, but temporarily fragile because of the loss of a job, of a temporary job and who does not allow access to the traditional banking circuit. The formula allows you to benefit from a small credit generally not exceeding 15,000 US dollars. And sometimes it requires moral or financial backing from a third person. The borrower launches a loan request online, clearly mentioning his identity, his address, but not necessarily the proof of resources and the destination of the requested funds. The lender studies his file. He can ask him for additional information. The two parties discuss the repayment terms and the rate which can vary from 1% to 20%. A loan contract will be established between the two parties if an agreement is reached. An IOU is drawn up and validated together for the loan between individuals over US $ 1,500. This document is used in the event of a dispute with the court.
Credit to individuals: A regulated loan
This operation can be done through certain specialized organizations which have, for this purpose, a specialized site which sometimes spurs the applicant towards other loans such as crowdfunding or participatory credit. The best known of these platforms being younited credit, formerly loan of union, a credit organization which specializes in granting loans to individuals The transaction is delicate because it does not rule out abuse. Community credit is governed by law according to the principles that govern credit contracts. Loan repayments greater than US $ 760 are subject to the rules of the mandatory tax declaration in which the terms of repayment appear. It is especially recommended that both parties submit to tax formalities. The borrower is required to declare to the tax service the existence of the loan and its interest rate. The lender must enter the interest received in this loan in his annual income statement.