For whom is the loan between individuals a solution?
Drastic selection, high rates: banks do not facilitate access to consumer credit. But what many French people do not know is that they can lend money to each other, with many advantages, without going through a bank.
Loans between individuals, what is it?
The practice of loans between individuals (PAP) or peer to peerlending (p2p) has developed in the United States after the scandal of subprime and is experiencing a growing popularity in France. It consists in generally asking a small amount (less than 10 000 euros) to an individual, for a repayment period which oscillates between 3 and 5 years. This type of loan is a solution for those who have trouble borrowing, especially when the family can not help them. These are classic contracts, similar to those that an individual can sign with his bank when it seeks to borrow. Some rules, however, remain to be respected:
- the rate of pay must respect the wear rate limit, the thresholds of which are published at the end of each quarter;
- the loan is to be declared to taxes.
Loan between individuals, the solution for the forgotten credit
Banks are increasingly reluctant to provide credit and require substantial income and / or a stable employment situation. Access to consumer credit is often complicated to:
- a person in the RSA, whose income is considered too low by the banks;
- a retiree, whose incomes are declining and whose age is a concern for traditional lenders;
- an interim worker, whose income fluctuation does not meet the stability criteria of the banks;
- an unemployed person whose situation is considered too risky;
- an employee on fixed-term contracts, whose solvency will be problematic at the end of his contract;
- a person in a situation of banking prohibition, to whom access to credit is blocked in fact.
It is in this kind of situation that the loan between individuals can be particularly useful, since it simplifies the process including limiting the credentials to provide. Those who have difficulty in obtaining an agreement for a loan redemption or a loan can thus again borrow.
Loan between individuals, the solution for a performance investment
If the borrower can see his interest, the investor is not left behind. With a higher yield of about 5% gross on its savings, investing in this type of loan is much more profitable than traditional investment types.
To lend to individuals is also to participate in the real economy, a more concrete investment than stock market speculation. It meets a goal of solidarity between individuals.
However, it is advisable to be vigilant: the loan between individuals live is not without risk! Go through an authorized intermediary has much more security: this is called collaborative credit
What is the difference between collaborative loan and personal loan?
The confusion is easy between the two terms:
- Collaborative loans such as those granted by Credistair, the only online platform approved by the French Prudential Supervisory and Resolution Authority (ACPR), are distinct from those of a “direct” loan platform between individuals;
- with collaborative credit, there is no direct contact between lenders and borrowers. The funds are invested in the platform, which pools the risks. We are talking here about a community of investors who “lend” to a community of borrowers.
Another notable difference? In the case of loans between individuals, they must be registered with taxes, an acknowledgment of debts must be established and you will be wary of the scam and check that the lender will not disappear after he got your money especially when the transaction is done on the web.
Collaborative credit: more restricted access than loans between individuals
If the loan between individuals knows as limits as those fixed by the lender, collaborative credit obeys rules of access that are close to conventional institutions. It is not intended to aggravate the situation of beneficiaries, but rather to propose a real solution to meet a need for liquidity. A collaborative online credit platform will systematically reject:
- non-creditworthy people;
- individuals in debt distress proceedings;
- people registered in the Bank Prohibited Banking Files (FICP) of the Banque de France.