Payday loan between individuals: non-traditional option to finance your Payday loan without emptying your wallet
Not everyone is eligible for a bank Payday loan . And in some cases, it could make you worse. With peer-to-peer lending, you may be able to get a Payday loan at a lower rate from one or more investors – without paperwork related to visits to a bank. However, this non-traditional option is still in its infancy. You must therefore make sure that your lender is legitimate before submitting your application.
How do Payday loans between individuals work?
Payday loans between individuals operate through an online marketplace where borrowers are in contact with potential investors. You submit an application with details about your financial situation, including your income, employment, debts and credit history. Your application then receives a note that investors use to determine the amount they are willing to lend you as well as your interest rate.
Many peer-to-peer lending platforms have algorithms that can handle your application in minutes. However, since an investor may choose to partially finance your Payday loan, the time to receive your funds may be longer than with a traditional personal Payday loan from a direct lender . If your Payday loan is fully funded, it will be deposited to your account, usually within a few days.
What are the Payday loan options available?
Although peer-to-peer lenders offer various types of Payday loans , you will typically find that most of them offer one or more of the following:
- Unsecured personal Payday loans . Payday loans between individuals are often not guaranteed, which means you have no guarantee to provide. Payday loan amounts typically range from 1,000 to 50,000 euros, and you can use your funds for just about anything.
- Personal Payday loans guaranteed. If you have security, such as a car or valuables, you can take out a secured personal Payday loan through a private lender. If you have bad credit, a secured Payday loan can give you a better chance of getting approved and getting a lower rate .
- Debt consolidation Payday loans . If you have several types of Payday loans and credit cards that run out of your budget, a debt consolidation Payday loan from a private lender can be helpful. You may be able to reduce your monthly payments by combining your debts into one Payday loan.
- Business Payday loans . A new type of financing is personal Payday loans to businesses . These business Payday loans can help you grow your business or make it work.