Car financing without a bank is now possible through online credit marketplaces from private to private. This increases the chances for loan seekers, who often have to overcome many obstacles at banks.
In addition, when deciding for or against a loan, there are emotional components that banks and credit institutions ignore.
Online loan brokerage for personal car loans
Borrowing money from private individuals is something everyone has probably done before. Most of them are relatives, family members, but good friends and acquaintances can also be considered lenders. Borrowing money privately shows a different dimension than the loan from the bank, as the lender hopes to understand his situation and provide personal support.
Credit brokerage portals for personal loans have also adopted this basic idea; the major platforms. Private individuals who need a loan and private individuals who want to make money available can register here. The “money lenders” are referred to as investors because they receive interest on the money they make available for loans. Depending on the platform, companies can also act as investors or act as loan seekers. Car financing without a bank is particularly suitable for all those who cannot come up with the usual conditions such as regular minimum income, for example for low-income earners or the self-employed and freelancers.
Private car loans
The loans, including private car loans, are set up as installment loans with fixed terms and a fixed monthly repayment rate. The loan interest is determined based on the creditworthiness of each loan seeker. A partner bank is involved in car loans without a bank, but it acts as a processing partner for lending and money management.
A prospective borrower submits a loan application for private car financing on the platform and is visible to investors over a certain period of time. This works in a similar way to the well-known internet auction houses. Interested private investors can then offer a sum X for this loan. Since the crowdfunding principle applies to online credit marketplaces, a certain amount of credit can be realized through different amounts of many investors.