Credit between individuals: what is it?

 

This is a personal loan transaction carried out between individuals through the intermediarymediator of an organism. Credit or loan between individuals, or PAP/P2P, is also called credit without a banker, because generally the peer-to-peer lending organizations are not approved financial organizations or banks.

Whatever name we give to peer-to-peer lending, it is a revolution in the financial field; it competes directly with institutional banks by positioning itself as a credible alternative. At the same time, the personal loan between individuals constitutes a real means of recourse when the family or friend circle cannot ordoes not want to lend money (because he does not have the necessary amount, or because he has difficulty granting trust).

Like Airbnb for housing, BlablaCar and Uber for transport, collaborative credit has a card to play in the future, in France as everywhere else.

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Loan between individuals: the response to a need urgent money

In terms of credit, the bank holds a significant market share compared to peer-to-peer lending establishments. However, the enthusiasm of individuals for this method of financing is real and growing. And for good reason !

First of all, personal credit between individuals is quick to obtain. Immediately after making your express request, you will receive an immediate definitive response. Then you receive your funds in record time.

Second important point to raise: the relatively flexible conditions for obtaining loans between individuals. You should in fact know that this financing model is accessible to borrowers who do not meet all the conditions to obtain a bank loan. We are thinking in particular ofx young entrepreneurs who do not have solid guarantees, or to individuals registered in the Individual Credit Reimbursement Incident File (FICP), or even in the Central Check File (FCC), who find themselves deprived of any possibility of taking out a personal loan from a bank.

This credit without a bank is also aimed at the borrower simply wishing to get out of the banking system and its sometimes prohibitive rates. In the case of credit between individuals, private lender and borrower agree on the interest rate that applies. Result ? Loans are much more attractive!

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Good to know: mandatory tax declaration after a certain amount: The law requires lenders and borrowers to declare to the tax authorities any loan between individuals of an amount greater than or equal to €760.

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Information and form of a loan contract between individuals

The loan between individuals is governed in the same way as a “classic” loan. This inevitably requires the establishment of a contract between the borrower and the private lender. This writing can take the form:

• Or a loan contract (form no. 2062, ifbe kept by the borrower and the lender, who each keep a copy).

• Either an acknowledgment of debt (to be drawn up, dated and signed by the borrower; an original for the lender, another for the tax service, and a copy for the borrower). Above 1,500 euros, this document must be drawn up by a notary.
   

Said contract must mainly mention:

• The full names and full addresses of both parties;

• The conditions of the loan (amount, duration, frequency of monthly repayments, interest rate).
   

Credit between Individuals: what is the link?

Over-finance has created a collaborative credit system unique in France. This system connects a group of individual borrowers and professional investors and Over-finance is the simple intermediary. In fact, Over-finance sells credit to individuals on the one hand and credit as an investment product to several types of profiles on the other.

Over-finance therefore does not exclusively lend between individuals in the sense that associations, private or public companies are among the professional investors who, by financing household projects, make their money grow.

Our system offers participatory, collaborative and virtuous credit, which is not a bank where credit is only financed by a single organization.

Finally, you may have noticed that most credit institutions apply PRA (prepayment penalties). This is not the case at Over-finance, regardless of the amount reimbursed. Our transparent offer is free from all hidden costs.

Need money at short notice to start your business, repair your broken down vehicle, do work on your home or even regularize your bills? Thanks to the Over-finance peer-to-peer lending platform and its community of private lenders, quickly validate your credit file and finance your project at a lower interest rate, and therefore at a lower cost!
 

The three key points to remember about the loan between individuals
 

• It consists of a loan of money between two natural persons (or between a natural person and a legal entity), via a collaborative platform specialized in loans.

• For individuals, it is a viable alternative to bank credit.

• It makes the personal loan accessible to any individual, including young entrepreneurs and people registered in the Individual Credit Reimbursement Incident File or in the Central Check File.

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