If either the house is to be financed, or a short financial bottleneck has to be bridged, then the bank is the first port of call. After all, the bank is the most popular place when it comes to credit. She can provide advice and provide the best conditions. But it’s usually not that easy. Because if the loan is needed very quickly, or if the own credit rating should not be as high as desired, then it can be difficult to get a loan from the bank. But there are plenty of other ways to get a loan without a bank. What alternative possibilities are these and which prerequisites are needed?
Reasons to prefer a loan without participation of the bank
There are usually two reasons why the bank should not be involved in the process of lending. The first reason is that the lending process takes too long. Especially when it comes to small amounts, then the money should be paid quickly and easily. Maybe it’s just about closing a financial gap at the end of the month?
Then it is not advisable to go to the bank, because here the decision for or against a loan can be very tedious. It is better to switch to other alternatives.
The second reason to do without a loan from the bank is insufficient creditworthiness. The credit rating indicates the probability of default. If the default probability is too high, then the bank will not grant credit, or only on very high terms. Banks act in these cases according to a standardized calculation method. Individual reasons and peculiarities are not considered here.
But even if a loan is sought in other ways, the credit rating is of great importance. In any case, therefore, there must be a security to the lender, so that he is ready to grant a loan. What opportunities to obtain a loan without the involvement of a bank, there are actually?
Ways to get a loan without bank deposit
The bank should be the first point of contact in any case. However, if it has signaled that the terms of the loan are very high or not willing to lend, then there are other points of contact that can also provide legal and secure credit.
One way to quickly and easily get a loan is to go to the Pflandleiher. Objects can be handed in at the pawnshop. The pawnbroker estimates the value and passes on a corresponding proportion of the value to the customer.
If the item is not triggered within a certain period, so the money including the fees can not be repaid, then the item is auctioned. In most cases it is advisable to give jewelery to the pawnbroker.
The pawnbroker usually pays the money immediately as cash. There is no need for a lengthy decision-making process. Instead of interest, the pawnbroker charges for storing and storing the item. These are usually below the fees that would be due for a loan.
However, note that the full value of the jewelry is not paid out. Finally, the pawnbroker bears the risk of receiving the final value at the auction. Thus, the pawnbroker is a good way to quickly get cash.
But there should also be the certainty that enough money is available to trigger the pawn again.
The instant loan
If only a small sum is needed as a loan, then there are more and more contact points for such microloans or microcredits. Especially on the Internet there is a large selection of different providers who offer a loan in a short time.
Here, the credit rating is not really crucial and after a very short check, which happens within a few minutes, the loan is approved or rejected. Usually the loan is approved and can be available within 24 hours.
The money is transferred to the bank account and can be withdrawn from there. There are also faster deals that can provide the money with a transfer within 6 hours.
However, interest rates are usually relatively high and such a loan should only be taken if there is an emergency. A consumer credit is hardly useful for such interest conditions.
However, this is a quick way to get money if there are no suitable items for the pawnbroker or too far away.
Ask a relative or friend
Although the limit of shame is usually quite high, asking a relative or friend for money is no shame. These have certainly been in financial difficulties and are happy to help in the emergency situation.
The advantage here is that friends and relatives when borrowing the money are rather generous. If there is a relationship of trust, then this usually serves as security and interest is due only to a small extent, or even not guaranteed.
Nevertheless, it must be aware that a financial dependence can burden the relationship with relatives. Therefore, only small and “bearable” sums should be borrowed from friends or relatives.
5 tips for a loan without a bank
There are also opportunities and measures for borrowing without a bank, which lead to higher chances of success and lower terms. The following five tips should be applied so that the loan can be both legally secure and on more favorable terms.
Provide a guarantor
If there is no material security to take out a loan, then it is advisable to take on a guarantor in the lending business. No matter where the loan is taken outside the bank, if the spouse or a close relative is liable with its material assets, the interest charge can be reduced.
Again, it should be noted that financial dependency can become a burden on the relationship. Therefore, the guarantee should only be concluded if the guarantor does so voluntarily and is not pressured.
Set up contracts
When a loan is taken by a relative or friend, it is usually done informally or by verbal agreement. This leads to the risk that there is no evidence of the total and the terms. Thus, it may happen that the lender may have demanded higher interest rates or had completely different sums in mind.
In order to avoid misunderstandings and to ensure legal certainty, contracts should be set up and signed by all parties. So there is an objective overview of the lending business.
If a loan is to be completed quickly and easily without the participation of a bank, then there is a risk that the first credit offer will be accepted. No matter if this happens with the pawnbroker or with the instant loan on the internet.
The conditions can differ drastically, so it makes sense to compare different contact points. Pawnbrokers are rarely transparent and it is difficult to keep track. For instant loans on the Internet, however, there are portals that represent all offers clearly.
Seek help from the state
If there is a financial emergency situation, then in certain cases the state steps in and can alleviate the financial bottleneck. For this, however, narrow conditions are created.
For example, if the washing machine is broken, then the state can provide a loan for the purchase of a new washing machine. The loan is inexpensive and can be paid off in small installments. The loans are earmarked and the money can not be freely used.
However, if such an emergency situation exists, it should be examined to what extent the state can help out.
Do not accept payday loans from strangers
Taking credit with relatives and friends can already lead to a very tense relationship. Due to the personal relationship, these are more willing to help out.
Should be avoided at any cost, the inclusion of a loan to foreign individuals. These usually have very unfavorable credit conditions and are on the verge of legality. Should the default of the loan threaten, then it can happen that the borrower is both mentally and physically put under pressure.
Loans from such loan sharks can never be a solution, but only exacerbate the financial situation.