Discovery of the loan between individuals via financing platforms

Picture of Nicolas Dabbagian, founded and CEO of Capsens
Nicolas DABBAGHIANJun 15, 2021
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Unexpected day-to-day situations can sometimes require the use of relatively large funds. However, turning to family, friends or colleagues can sometimes be very embarrassing. The choice to go to the bank or a financing institution is an expensive choice and does not always offer the desired satisfaction. There are many guarantees to offer and the interest payable can be daunting. To effectively overcome these problems, financing platforms for loans between individuals now represent an excellent compromise and an alternative to banks for fast and low-cost loans. What about the loan between individuals made through financing platforms? Details in this article.

What about the loan between individuals via a credit platform?

The loan between individuals via a credit platform is comparable to a bank loan. It connects two parties with complementary needs: individuals in need and others looking for an investment for more profitable savings. This type of credit requires the payment of interest charges just like with the bank and has many advantages. However, it is important to beware of scams and to choose a reliable, secure and recognized peer-to-peer lending platform.

Mode of operation of the loan between individuals

The process for obtaining a loan between individuals on a responsible and reliable platform is simple and fast. With Finfrog for example, which is a peer-to-peer lending platform recognized in France, the loan request is made entirely online with a response given within 24 working hours following the submission of the request. The loans are spread over a short term ranging from 3, 4 to 6 months. The system set up by this platform is efficient and secure. Indeed, Finfrog works in close collaboration with MangoPay, one of the most efficient and widely used online payment system.
These loans are perfect for solving unforeseen events such as a bank overdraft to fill, a car breakdown, a health problem or a small personal project.

What are the advantages offered by the loan between individuals?

Opting for a peer-to-peer loan online is an excellent option when this loan is taken out through a quality platform. This type of loan has advantages for both the borrower and the lender. Opting for a peer-to-peer loan online is a quick and easy way to get credit. Long administrative procedures and multiple appointments are avoided; most importantly, the cost of loans made through these channels is much lower than those generated during credit procedures contracted in traditional credit organizations.

The advantages of peer-to-peer loans for investors

For investors, loans between individuals represent a real boon. They are open to people who are at least 18 years old, have a bank account in the European Union and of course have a minimum amount required by the platform concerned. The advantages offered by this type of investment are numerous:

  • Attractive and very satisfactory returns: investing in a secure online credit platform is an effective way to run your savings and earn substantial annual interest;

  • A fast and free investment: to invest in a peer-to-peer lending platform, the procedure is simple. You will only have to register for free by following the conditions established by the platform of your choice and to offer your services without any delay;

  • Investments to match your possibilities: the vast majority of online credit platforms allow very low investments. So, no need to own a fortune to get started. You can invest from 10 euros and increase your stake as you go. This investment is open to everyone and represents an excellent choice to make your savings work;

  • Secure investments: loans between individuals also offer very good guarantees. The risk of losing your investment is therefore moderate compared to many other types of financial investments.

Crowdfunding and loans between individuals: what is the difference?

crowdfunding idée

crowdfunding idée

You have certainly heard of crowdfunding before. This is a type of peer-to-peer loan whose financing method differs from that implemented by peer-to-peer lending sites as defined so far. Indeed, to benefit from crowdfunding, it is necessary to present an innovative, interesting and absolutely creative project. The crowdfunding platform is therefore responsible for presenting your project to interested investors. If it attracts attention, it can be financed according to different modalities selected. A donation, a loan, a capital increase: the terms are numerous and attractive.

Picture of Nicolas Dabbagian, founded and CEO of Capsens
Nicolas DABBAGHIANJun 15, 2021
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