The Individuals 'bypass' the Banking

Loans offer citizens the possibility of social loans, a new form of financing conducted directly through people willing to lend their money. Before the economic crisis in which we find ourselves, traditional financial institutions are making credit more expensive.
moneyp2p
Whether is done through friends, relatives or strangers on the Internet, people are turning to subsidiaries responsible for granting micro loans, rather than turning to credit institutions, as traditional banking. This trend is experiencing a growing popularity because it often provides a more favorable rates than can provide traditional lending institutions interest. For its part, the person offering the loan also benefits from this type of transaction, as you gain greater economic performance compared to what you would get to put their money in a conventional method investment, receiving higher interest rates directly from receiving the loan.

Introduction to loans person to person
Almost no one would pay money to a stranger. So cold, the idea does not appeal much. But new technologies, Internet and development of social networks have brought to the consumer a new way to find funding and lend (invest) certain amounts in exchange for an interest. Platforms are loans between individuals: anonymous citizens that solve your money problems without the intermediation of traditional banking.

The concept of P2P Banking comes from a very normal practice done throughout history, long before the development of the banking system or the use of currency. Loans made directly between relatives, friends or acquaintances have always been a source of funding for those who need liquidity. Normally the amounts provided are small compared with the agreements of the big banks so that shape what we would today call "micro finance". These loans are generally constituted without collateral or guarantees, the money is paid based on a previous relationship that allows the loan; indeed collateral for these loans is trust.

If you are really interested in the social aspect of this "jump to the bench," become a bank yourself.

Bidding System
The mechanics are simple. If the borrower is legit, begins an auction among lenders interested in taking that risk, to change static -clear a juicy interest rate: between 8% and 10-12% in most cases. A higher level of creditworthiness of the borrower, the lower the cost, because less risk is assumed. One also minimizes that provides irrigation because many different people simultaneously.

Borrowers can apply up to 50,000 euros to pay a maximum of four years. The default is highly controlled.