Obtaining a credit without a bank: is it really possible?

Posted on April 16, 2020
credit without bank

The loan is often an alternative which saves many households in difficulty. When it comes to loans, it's okay to look to the bank. However, the conditions for obtaining a loan can be quite restrictive. Fortunately, there are other alternatives that allow you to get a loan without going through the bank. If you are banned from banking, if you have made requests to credit institutions, but collect refusal after refusal, discover here the other possible solutions for you.

Credit with friends or family

Among the alternatives to bank credit, the loan concluded with family or between relatives is certainly the simplest. Indeed, the loan between the members of the family or between friends makes it possible to obtain money more easily and quickly compared to a request for credit with the bank. However, even if the procedures for a loan between relatives are not difficult, it is always advisable to provide in a written act the terms of credit and repayment.

Even if you trust the person completely or the loan is for a small amount, the existence of a writing helps to formalize the commitment. You can set up an IOU or a notarized loan. This written proof helps to deal with any disputes or problems during the loan agreement. For the recognition of debt, it is important that it includes a date, a signature and also the sum of the loan in letter and number. The borrower should keep the original and produce a copy for the lender.

Credit between individuals

If your family or loved ones can not grant you a loan, you can always consider the loan between individuals through specialized sites. Indeed, this kind of site offers the possibility to individuals to obtain financing from other individuals that they do not know. It is a site for connecting borrowers and investors to facilitate obtaining credit. The procedures for a loan between individuals are more simplified compared to a bank loan.

The loan between particular on specialized sites will be done completely online. You just have to give all the information about your project as well as the amount of your loan. When completing the online application, it is important to give correct and not incorrect information. Indeed, the site will seek to know if you are not registered with the FICP (File of credit incidents to individuals) or that you have an over-indebtedness in progress.

Crowdfunding

Crowdfunding or crowdfunding is a very good solution for credit without a bank. This is financing that often involves more than one investor. The lender who wishes to set up his project will therefore present it to investors to request their aid. Thus, investors will analyze the project to determine if it deserves funding. Creation of a start-up, personal project, real estate project or even travel project, everything is possible.

However, although there are more and more crowdfunding platforms today, the repayment does not always take place. In fact, most often the projects which obtain funding benefit from donations without counterpart. When a reimbursement is planned in the context of crowdfunding, we speak of crowdlending. These are funds from individuals that will be used to finance the projects of other individuals. Thus, individuals who wish to carry out a personal project, undertake renovation work or even buy a car can seek help from other individuals through crowdlending.

The pawnshop

The pawnshop is an ideal solution for obtaining emergency liquidity. Indeed, the loan is granted directly after the deposit of a pledged object. The amount of the loan will be determined according to the value of the object at public auction. The credit will be spread over a period of 6 months to 1 year according to the Municipal Credit.

The pawnshop is fast, simple, but also accessible. Effectively, anyone is eligible for the pawnshop, as there is no income or credit check requirement. Thus, we can say that the pawnshop is a very good alternative to the bank loan. However, since this is a loan, you should never go headlong. Always take the time to check your repayment capacity before committing to the loan.

Social microcredit

Among the alternatives for credit without a bank, there is also social microcredit. It is an ideal financing solution for people who have no source of income and no possibility to prove their solvency. This small credit allows you to benefit up to $ 5,000 without going through the restrictive procedures of conventional loans. The amount granted is considered as social assistance intended to get the person back on track financially.

Thus, microcredit is granted to allow a household to improve its economic situation. It can be linked to an acquisition of goods or services depending on the needs of the borrower. For example, you can apply for a microcredit to buy yourself a vehicle as a means of transport for a job search. Among other things, microcredit can also be used to finance the start of a business. Not only will you have the opportunity to overcome a financial difficulty, but also benefit from social support for financing.

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