In a situation where there is no creditworthiness and the poor history in GFI (or other debtors’ registers), even temporary companies are reluctant to grant loans, family or private (or community) loans remain. The only question is about security issues.
For example, are private loans also covered by the anti-usury act? As far as I know, the Anti-usury Act applies to all forms of borrowing money at interest. Well, maybe with the exception of pawnshops, but pawnshops are a slightly different form of service.
Returning to the subject, it is the anti-usury act in loan agreements that protects borrowers from excessive, uncontrolled costs. Of course, there is also a whole gray area where contracts simply do not apply on paper, but for a word – but there are slightly different rules.
Social loans are quite ok. What is the difference between social loans and other forms of loans? Well, in the case of social investors, anyone can be an investor. I can be, you can be. You invest, but you also earn interest. This model is popular in many countries.
Especially in those countries where there is no major problem with debt collection. But what is scared here? A contract should be formulated … the contract should include the obligations of both parties. In the table of fees and possible commissions, specify in which situations the borrower is obliged to incur additional costs (they usually result from exceeding the repayment deadline) and basically that.
There is also something like a consumer advocate (in every point). You can go to him with a question in case of doubt. We don’t live in some wild country, where he is right, who has the strength or more money. At least, this is how it should look in our composition.
People should not be afraid of the consequences of their decisions. After all, this is not selling a house for USD 3 million, but a simple loan, very often for a few hundred. Let’s not go crazy. There is a contract, there are obligations – does the source of loans really matter?
After all, there is a contract that regulates it all. From the consumer point of view, it doesn’t matter if it’s a loan company, a bank or maybe a community loan.
We don’t have many interesting offers like social loans, but I think that as society gets richer, there will be initiatives that are so popular in Western Europe – especially in Anglo-Saxon countries. Usually, these are more favorable offers than typical quick loans.
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