In addition to well-known payday loans, a new product has recently appeared on the non-banking market – social loans. In this case the lender is not an institution but a natural person. Learn the details of how these loans work and see when it pays to use them!
A social loan is, in fact, a civil law contract between two individuals.
The subject of this contract is a specific amount of financial resources that one of the parties undertakes to make available to the other under certain conditions.
Unlike products offered by payday companies, social loans are not subject to any supervision. A person who grants such a loan can therefore demand any commission for it (see more about loans without commission. He can also check the potential borrower in the debtor’s register, but there is no mandatory obligation of such control. In other words, practically all conditions of a social loan depend on this , as both parties agree.
Where to find a social loan?
Several intermediary services between lenders and people in need of loans have already been created on the internet. These include, for example, such portals as finansowo.pl or kokos.pl.
The principle of operation of such platforms is very simple. If you need a loan, all you have to do is publish your ad there, specifying the amount you are interested in and the repayment period. People who can provide financial support have access to posted ads. If a lender decides to lend you money, he or she will contact you through the website.
As we have already mentioned, the costs and terms of such loans are already set directly between who needs money and who lends it. However, when using intermediary platforms in this type of transactions, you must also take into account the commission charged by the website itself. Sometimes these platforms earn half the commission agreed with the lender, and sometimes they may charge a separate percentage for themselves.
Are social loans secure?
The anti-usury act in force since March 11, 2016 imposed a limit on payday loans for loan companies. Even before this document took legal effect, the financial industry predicted that its effect could be an increase in interest in social loans.
Indeed, our customers are increasingly asking about these types of products. We usually get social loans much easier than payday loans (for example, due to the borrower’s lack of control in the debtors’ bases). Nevertheless, whether it is safe to use them depends on us. Therefore, it is worth assessing your financial capabilities at the beginning and choosing the amount that you can easily give back. We also cannot agree to conditions in which the interest rate on the loan exceeds the legal limit of 10% or to a commission that is inadequate for the amount borrowed. Before signing the contract, make sure you read the arrangements there, and if you have any doubts, ask the lender for details or consult the lawyer.