The credit system of recent years has changed. A loan without Private Credit is no longer just a foreign loan. The credit from private to private without Private Credit has arrived in Germany. The market for personal loans is expanding explosively. More information about the background and possible alternatives offers the contribution.
Loan from private to private without Private Credit – backgrounds
Private-to-private credit without Private Credit is one of the most recent developments in the modern credit market. The prerequisites for the success of this business idea are provided by the CB (Central Bank) and the euro crisis. In 2008, it was “lazy loans” from the USA that triggered the extreme public debt of the euro countries. With the decision to save the banks, politics has risked a lot. As the story unfolded, the euro collapse could only be prevented with the greatest risks.
Such a scenario should not be able to be repeated, according to the wishes of the politicians of all countries. The contracts of Basel were closed. In the wake of these contracts, all banks tightened their lending rules. In addition, the CB cut interest rates to a record low. The savings books of the small savers thus became a capital destruction machine. They do not even generate the inflation compensation. The starting signal for successful private loans was thus given.
The personal loan as a problem solver
The personal loan portals offer savers and borrowers a way out of the problem. For savers, the personal loan offers a secure investment opportunity and a fair return on capital. Borrowers, which are increasingly considered a risk to banks, can provide capital. Affected is also the credit without Private Credit.
As a foreign loan, it is increasingly difficult to obtain, because the Swiss banks must also comply with the new rules. The credit from private to private without Private Credit was therefore only a logical step. When formulating the loan request, everyone is free to choose what information is published.
However, the personal loan without Private Credit is not without restrictions. The portals offer security certificates for lending. This allows each lender to get an idea of a borrower’s repayment behavior. Without the purchase of a Private Credit certificate, the chances of larger loan amounts are very limited. By releasing the certificate, however, negative Private Credit entries become visible and have a deterrent effect.
Alternative – credit through the credit intermediary
In response to changes in the capital markets, credit intermediaries also had to reorient themselves. They no longer offer credit without Private Credit as foreign credit. German specialist providers also grant these loans in the meantime.
They also deepened their relationships with private investors. The credit from private to private and without Private Credit can therefore also come today through a credit intermediary.