Do you know any new loan alternatives ? The famous social loans, this is the new craze to get financial resources with low cost and near zero bureaucracy. It is not today that the internet has come to “facilitate the life” of the citizen and in the social loan operations are carried out entirely in a virtual environment (site), suitable to complete the exchange of money between people.
I have said here in the portal that Brazil in terms of lines of credit and loans to individuals is light years behind other countries. The social loan is one of those lines of credit that was barred by the “Owners of the Country”.
New Alternative Loans
Also known as a “peer-to-peer loan,” social loans is a widely used form of consumer credit in Europe, North America and Australia, the main idea is to get you in direct contact with private credit providers through use of online platforms appropriate for this type of operation.
The concept of the line of loans (capital loans) is to create a virtual environment that facilitates the exchange of money between individuals, realizing a true market of personal loans where creditors and borrowers find ideal conditions to arrange the financing of the concession and also the reimbursement of credit with the payment of a certain amount of interest agreed between them.
Alternative Peer-to-Peer Loans
The Peer-to-Peer site is the intermediary of a meeting between a creditor and a money-maker. The site is also able to ensure the suitability of the business and the participants. In this particular financing model, the intermediary (site) earns a commission, generally paid by the person requesting the loan (the commission varies between 0.5 and 2%).
The interest rates of the social loan is also good, it is usually charged between 2% and 5% depending on various factors, conditions and terms. The fact is that this mutual benefit to the lender and contractor has helped make this form of loan a great alternative to bank loans that have higher fees and exaggerated bureaucracy for granting.
Alternatives to collective loans
The form of personal and occasional loan between two individuals that takes the form of collective loans in Brazil is considered illegal and there is no regulation provided by law, here only financial institutions holds the right to offer money at interest. In more advanced countries, the Civil Code itself qualifies the creditors and allows contractors to freely hire private interest.
Although everything happens in virtual environment, it is necessary to sign contract with all qualifications and financial reports to be validated and legitimate, including the date of repayment, type of loan, personal information of both parties, total, interest rates etc. ., the legal consequences are the same as a financial operation of the conventional system.
“Personally I doubt that here in Brazil this new loan alternative will be released at least in the next 5 or 10 years”
UPDATE : After a few years after writing this article, the scenario changed completely and was once considered as a threat to the profits of the big banks, today is the purest reality, the debit is in full swing and you who are a consumer of credit is the favored one, if you want to know more about everything related to peer-to-peer.