Borrow money without a bank? Keep in mind that this is not easy, but on the other hand there are possibilities
to exist. In any case, find out for yourself why you want to borrow the money and why you do not want to do so at the bank. Do you not trust the banks, do you have bad experiences with it or do you want to borrow the money without a bank, because you already have a negative BCR check has? On the basis of this, try to find out whether it is wise in your case to take out the credit.
Take out a mini-loan
Do you want to apply for a loan without a bank and is it a few hundred USD? Then you can decide to take out a mini loan, since you do not need the bank for that. Instead, it is sufficient to state what you receive in monthly income or benefits and whether you have a permanent contract. If that is the case, you can request the mini loan. You can then borrow money without a bank, to pay for groceries or, for example, to buy a new refrigerator after it has broken.
Borrow and pledge
Do you want to apply for a credit without a bank and do you have any valuables that you would like to use? You can decide to use certain jewels or perhaps your car as collateral. The advantage of this is that you can continue to use it, while on the other hand they make it possible to take out a loan. Please note that the credit provider will enter the car Personal loan when you can no longer meet your obligations. Find out if borrowing money without a bank is a good idea in your case and how you will ensure that you are earning income.
Friends and acquaintances
You can of course also turn to friends and acquaintances. You can then borrow money without a bank, although it is still wise to draw up a contract and, for example, to ensure that it is clear what amount you are borrowing.
When you as a creditor are going to lend money to friends or family it should be clear:
- Find out if there is another way to help that person get out of debt: eg. search behind a job, administrative support for debt mediation, provide transport to the necessary authorities, drive to the store instead of the night shop etc..
- There is always a reason for a debt. Assume that there may be months when no money comes in. If you do not take this into account, tensions can quickly arise that destroy the relationship between family or friends.
- Is a month not paid back? Try to communicate openly but do not aggravate the situation. Quarrel can lead to non-repayment of the loan. Do you already see your friend or family in court?
- Find out what the money is for.
- Always prepare a document that both parties must sign and, if necessary, have it regularized.
- If this person has large debts, then it is more appropriate to contact debt brokers.
When borrowing from family or friends, the following should be clear:
- Calculate how much you can repay: Prepare a repayment plan for yourself and keep it reasonable. If you only have income of 1200 USD, it is unreasonable to pay 600 USD a month. A monthly amount of 300 USD is certainly achievable and will not put you in the shoes.
- Put everything down on paper: How much are you going to borrow, do you have to pay interest, over what period are you going to borrow, how much do you pay monthly, when will you pay, what if you can’t pay (collateral or the like), what in case of mortality?
- Correctness of the document: When everything is on paper, have both parties sign it. So both the lenders and the debtor sign the document on date and for approval. If you want to play completely safe, you can have the document regularized at the Notary. This is only possible when a contract is signed by both parties (and not by the creditor alone).
Of course you do this on the basis of trust, but what happens if you or the lender dies? Thanks to the contract, borrowing money without a bank is still clearly clear and at least no problems can arise within families.
No BCR check when borrowing money without a bank?
One of the benefits of borrowing money without a bank is that there will be no BCR check. Do you already have another loan, or perhaps even a payment arrears? Then the provider of the money will not find out, so you can take out the loan. On the other hand, this also entails a risk that you are responsible for. You can therefore only apply for a loan without a bank if you make a plan for yourself to repay the money and not (further) end up in trouble.
Do you have debts with suppliers? Then contact the creditor and explain that you are working on a solution.
If necessary, go to the OCMW and ask for debt mediation and budget management. In this way, your finances are arranged by the OCMW itself and debts are eventually paid off.