There are situations where you need to borrow money, for example, if you have to make a much-needed budget purchase that was not planned. With electrical appliances, furniture or electronics, a sum is quickly reached that you can not pay from your disposable income or savings. Then you have to look for a way to borrow the money you need.
But where can you borrow money, many ask, who have need of debt. The following article will answer this question in detail. Basically, banks are the number one contact when it comes to borrowing money. Here it is possible to contact your account-managing bank or a third-party institution.
Borrow money from banks or savings banks
The vast majority of people have a checking account with a bank or savings bank. This is the salary and / or other income. And current expenses are also paid by this account. You can also go to your bank or savings bank if you want to borrow money. As a rule, you have to explain what you need the money for. Of course, all financial institutions check the creditworthiness of anyone who wants to borrow money there.
In order for this test to be carried out, the applicant must submit current salary statements. At the same time the responsible bank employee examines the data, which is available at the credit reference agencies, eg. B. the credit bureau, are stored on the appropriate person. If this process is positive, a loan offer or contract will be made and signed by both parties.
If the conditions are right, you can then borrow money from the bank. The borrowed capital is paid back with interest over a certain period of time. But you should make sure that the rates here are not too high, so you have enough money for the livelihood and other expenses. This reduces the risk of becoming indebted.
Lend money online
But you do not have to go to your house bank if you urgently need a loan. Today there is also the possibility to conclude a personal loan online. This will save you a lot of time. You can also send the necessary documents to the credit provider online.
A credit comparison ensures that you can lend as cheaply as possible. So that the interest rates are low and you have to raise a lower monthly rate. Borrowing money online can often be cheaper than the classic instant loan from the local branch bank. A rescheduling can be worthwhile. This means you replace your previous expensive loans with cheaper ones. Often, the new lender will even help you with this.
Sometimes it is difficult to borrow money from the bank. Especially if you do not have a good credit rating. If you want to borrow money then you have to look for other options. There are portals on which private lenders have joined forces.
These usually expect a relatively high interest rate and are willing to lend money even in uncertain cases. Even if you borrow money in this way, you have to pay it back within a certain period of time. You then conclude the loan agreement via the respective credit platform. The loan is usually financed by several private individuals through their investment.
Borrow money from the employer
Especially large companies are usually interested in their employees being able to overcome a financial bottleneck. In some cases, therefore, they provide them with the opportunity to borrow money, especially for long-time and well-earned employees. Often, such loans are also paid interest-free. However, this path may result in some dependence on your employer. Maybe this looks for granted that you z. For example, you can spend more overtime once he has lent you money. Therefore, some caution is needed in this form of borrowing.
Borrow money from private individuals
There is also the possibility to borrow money from other individuals. For this purpose, you can place an ad in the newspaper or online. There you indicate why you want to borrow money and how you may want to pay interest on the sum. Interested parties can then contact you. In this case, you must clarify in a personal conversation how the credit agreement should be structured in detail. Private borrowing is also particularly useful when it becomes difficult at the bank to borrow urgently needed money. But you should not get involved in paying usurious interest.
Borrowing money within the social environment
Of course, you can not only borrow money from foreign individuals. It is also possible to get a loan within the relationship or from friends and acquaintances. But then you should pay particular attention to repay the installments on time. It would be a pity if friendships or family ties break down because borrowed money will not return.
That’s not worth the thing. Therefore, choose the sum only at a height that you can repay without difficulty. Then there is no stress within the family or among friends. In the beginning it will take a little overcoming to ask friends or family for money. Often, however, these people are just willing to give you favorable terms. An attempt can be worthwhile.
Lease leasing as an alternative to money
Before you have to borrow money, you can also think about leasing. This can be interesting, especially with car financing. They often have a leasing rate that is lower than a classic car loan. However, the car does not belong to you after the lease has expired. You have to return it and sign a new contract.
In some cases, it is also possible to take over the car by paying a final installment. You can then finance them again. Leasing can be of interest to self-employed persons if they can deduct the rate from the tax.
Borrow money via dispo
In many cases, you can also borrow money from the bank by overdrawing your account. Especially if you have a regular income. Here you simply take your Dispo to complete, if you need one or the other purchase. But you have to keep in mind that you usually pay high interest rates for the overdraft. It is then better if the overdraft is converted after some time in a form of financing on better terms.
Lend money, our conclusion:
In addition to the bank loan, there are other ways to borrow money from private lenders. Borrowing money privately is growing in popularity. Because thanks to the Internet, it has become possible, in contrast to earlier borrow not only money from acquaintances or relatives, but also from hitherto completely unknown private persons. There are various detailed solutions that can be used successfully.
Many people who need debt capital, of course, want to borrow the money immediately without much work and time. But there are some important factors that should be considered before signing a contract. Especially the professional status and disposable income count towards this. Anyone who is an employee or civil servant who receives a demonstrably fixed and secure salary from his employer on a monthly basis usually has a much easier life than a self-employed person.
For the latter group of people has a much harder time borrowing money from the banks. The reason for this is that credit institutions expect a significantly higher default risk for self-employed and freelance borrowers than for permanent employees.
Thus, the option of borrowing money privately is especially recommended for those in this group, especially if they have already been bankrupted. But also workers and civil servants who are not with the z. If, for example, you are in agreement with your house bank, you can opt for a private loan.
It is important that anyone who lends money, he notes that he must repay this debt plus interest again to the lender in full. Therefore, the maturity and the monthly repayment installment must be in line with the existing funds, so that the loan repayment works smoothly and does not lead to financial problems.
Of course, the reasons why people need a loan are very diverse. One would like to borrow money to settle debts due or make private purchases, while another would require capital for an operational or commercial investment.
When lending the respective purpose is not insignificant. Many creditors are prepared, for example, to grant a real estate loan, since the respective property can indirectly serve as collateral. On the other hand, the number of lenders who invest in a risky business idea is lower, as a total credit default can not be ruled out here.
Also, the fact that neither a private lender nor a commercial loan provider gives a loan to people whose credit rating is inadequate must be mentioned here.