Borrow money privately

Do you not receive a loan from a lender, or do you not want to run a risk of a so-called 'BKR registration'? Then you can also choose to take out a private loan. In the Netherlands there are many wealthy individuals who are happy to lend you money.

It is interesting for the individuals who lend you the money , because the interest rate on the loan is a lot higher than, for example, on a savings account. Good agreements are often made in advance, so that you as a borrower are obliged to pay the interest and repayment.

Why do private individuals lend you money?

In general, borrowing money is also a lot advantageous for you as a borrower. You do not have to deal with the (enormously) high interest rates of the American lenders. Individuals often charge a lower interest rate than lenders. In addition, with a private loan, you do not run the risk of a (negative) BKR registration, after all, private individuals are not affiliated with the AFM.

Make clear agreements for private loans

It is important for both you and the person from whom you receive the loan to clearly record the agreements. Does it concern large amounts? Then it is not a bad idea to have the agreements recorded at the notary. Borrowing money privately is also sometimes used to finance start-up companies, this is also called 'crowdfunding'.

Borrowing money, costs money

Of course, also with private borrowing money: Borrowing money costs money. The people who lend you money will of course not do this for free, you will eventually have to pay interest on this loan. In addition, it is of course not wise to take out a loan for your current debts, but that also applies to any other loan form.

Need money quickly?

Do you need money quickly? Then borrowing money privately is often not ideal. It takes quite a while before you have found a good lender, after which the agreements must also be recorded. When you need an amount up to $ 600, you can try to take out a mini loan. More information about the mini loan can be found here.