Reasons to take out a loan between individuals
When banking institutions no longer lend to a certain category of people, obtaining credit by means of loans between individuals is still possible. As such, all negotiations are between individuals and can take place between friends, neighbors or between family members. Financial institutions can also put a private lender in contact with a debtor so that the latter can benefit from a credit. In order to guarantee the reimbursement of the funds paid, it is advisable to leave written documents detailing all the negotiations.
Advantages and disadvantages of taking out loans between individuals
The option for the loan between individuals is often the ideal solution for those who cannot borrow from banking establishments to meet money needs. If this type of loan is made with friends or families, it can have certain advantages especially for the borrower both in terms of duration and monthly payment. The repayment tenure is often flexible and it is possible to have a zero rate loan.
A particular lender, especially if he is part of your entourage, in fact rarely applies a rate to borrow money. It is also one of the ways to really benefit from a loan between individuals without costs, neither before nor after the negotiations. So that the creditor can be assured that his money is fully reimbursed, it is always advisable to check everything in writing.
The amount borrowed, in numbers and in letters, and the duration of the repayment must appear. Each party must then affix their signatures. If the borrower later does not honor his commitments or has difficulty in doing so, the lessor can use them to succeed.
The zero rate loan or PTZ
Apart from loans which are contracted between people who know each other, the State is currently encouraging households with modest incomes to apply for the Zero Rate Loan or the PTZ, in order to allow them to buy housing which will serve as their residence. main later. This type of credit is granted on condition that the house is new.
It is possible to request this operation if a person wishes to carry out renovation work so that his house acquires a certain level of energy performance. In this case, to obtain the credit, it is necessary to present documents justifying that you actually carry out work in this direction. The company in charge of the work then establishes a detailed estimate mentioning all the tasks to be done, and it is this latter which will be taken into account by the financial body so that it can grant the financing called eco-loan at a rate zero.
There is no interest to pay in these zero rate loans but it can be combined with home loans just as the applicant can bring his personal contribution. The repayment term can be short or extend up to 25 years depending on the borrower’s income. In order to guarantee full repayment of the credit, the institutions offering these PTZs must necessarily sign an agreement with the State.