Are you wondering about private loans and what that means? There are several ways to interpret it. To make it easy to understand, you might ask yourself:
Do I borrow as a government institution, profession or private individual? In the case of a private person, this is also a private loan. Now that it’s in place, we can take a closer look at how this kind of loan can be broken down into easier chunks.
Good Finance offers a type of private loan called consumer loan with installments. You can borrow up to 25,000 for consumption and quietly repay the loan without stressing the deadline.
With a Good Finance loan, it goes fast at first and afterwards you can decide the pace yourself. We offer a quick application process and approval as well as quick money in the account.
At the same time, Good Finance is one of the most flexible loan providers, so you have every opportunity to manage your loan in just a few clicks.
When you borrow privately from Good Finance, you choose:
- Put your installments on standby
- Extend your installment period
- Increase your credit amount
- Make extra payments at no cost
- Redeem the loan whenever you want
If that sounds good, try looking at some more concrete figures in our loan calculator and apply for a 2-minute loan.
Want to know more about home loans? Let’s go through it together.
What is a Private Loan?
Private loans are a term that covers all loans for private consumption. If, as you mentioned, you think it is in contrast to business loans and government loans, it will be easier to understand.
It is not a specific type of loan or credit, but a whole category of loan. And it is most likely under just the exact category you are looking for now. So let’s split it up into smaller pieces.
Consumer loans for individuals
Private loans can come in many editions, but they are most often categorized as consumer loans. What is it? A private consumer loan is a loan designed for private consumption.
It can be a new phone or holiday you want to lend money to, it can also be a credit card that you use for many different, smaller purchases.
All the loans you take out for private consumption and not business are private consumer loans – and they can be with or without security. So we divide it into even smaller chunks.
Private loans with collateral
Private secured loans, for example, are car loans or home loans as well as consumer loans for which the lender requires collateral.
To take out such a loan, to put it simply, you need to pledge something you already have or what you are going to buy. For example, your upcoming residence.
If you cannot repay the borrowed money, the lender can obtain them by selling what you have provided as collateral for your loan.
Private loans without collateral
Private loans without collateral work like this, so that, instead of linking your loan to a particular asset, you pay slightly higher interest rates and credit costs. These costs are called AOP and act as a form of security.
This type of loan can be payday loans, cash loans or credit cards. They can also just be called consumer loans by the lender.
These loan agreements vary in relation to the loan amount, cost, maturity, and whether the repayment deadline is fixed. One factor, however, is common: There is nothing called “private loans despite GFI” when it comes to loans with no collateral. They all depend on your name not being in this register.
Have you been clarified about private loans?
If you are still in doubt about something about home loans or borrowing money from Good Finance, don’t hesitate to ask our knowledgeable customer service. Click on one of the contact options you can see at the bottom of the page and let us hear your questions. We look forward to helping you!