Private credit for private
is a German online banking marketplace that brings together private loan seekers and lenders. For the settlement of the loans, Trucredit relies on the Bank as a direct bank and partner company, but only very few loans are concluded directly through this financial institution. Instead, the users of the platform have the opportunity to present their projects in detail and thus arouse the interest of private lenders. The terms such as term or loan interest rates are negotiated individually prior to the conclusion of the contract, whereby a large number of lenders can invest proportionately in the same project.
Trucredit was founded in 2007, from the very beginning the focus was exclusively on brokering loans via the internet. Peer-to-peer procurement remains the most important source of credit brokerage to date, bringing together potential lenders and borrowers in an easy way. Due to the free framework, who receives a loan through Trucredit, the platform is also interesting for self-employed or credit seekers with a bad credit rating. However, whether and on what terms it lends to Trucredit always depends on the trustworthiness of the individual loan seeker, their financial situation and their willingness to take risks.
How is the credit rating checked by a loan seeker?
Based on over 9 years of experience, scoret Trucredit prospective creditors with their own TrucreditScore. This was developed by the experience of recent years. In total, more than 300 characteristics are included in the calculation of the score.
How long does it take to edit Trucredit?
Loan requests from people who have successfully passed Trucredit’s credit check (score classes AA-E) are funded very quickly or even directly. Between credit application and loan disbursement are often only a few days for persons who have been successfully scored. The period depends mainly on the extent to which and how fast the prospective customer is involved (eg signing the loan contract).
The special feature of lending at Trucredit at a glance
To obtain a traditional loan is rather complicated for private customers and requires the confrontation with a bank or a bank. Frequently, the granting of the desired credit on the creditworthiness fails because the applicant can not prove sufficient security for the lending. Certain professional groups, such as the self-employed and freelancers, are struggling to obtain a loan from a traditional bank due to a lack of regular salary payments anyway.
About Trucredit, these problems do not arise because the lender is not a typical financial institution. Rather, private individuals invest in their own project, whereby the financing is scattered by several investors. In order to get them to invest money, those seeking money can describe their intentions and leave extensive information on Trucredit on the current salary and other collateral. The team behind Trucredit also estimates its own financing plans and shows potential investors whether this seems more or less risky. If the repayment interest is correct in the eyes of investors, they can invest in the project. If the required sum is 100% reached, the contractual settlement takes place via the Bank and the borrower pays back the loaned money as usual in installments. These are distributed pro rata to the participating investors each month.
At what conditions a loan is concluded with Trucredit
Credits between 1,000 and 25,000 euros can be taken out. When hiring a new project, loan seekers at Trucredit can directly enter for what purposes they need this amount. Typical cases are the investment in new furniture, a new vehicle, as an entry-level capital at the start of the self-employment or the rescheduling of an existing loan or the compensation of a credit line.
The loan amount is freely selectable, the interest rate is determined by its score class. By distributing a project to many investors, however, they are quicker to support even unsafe projects, as the loss of the individual is limited in extreme cases. Should it come to arrears, the Bank as a partner of Trucredit comes to this circumstance, in addition, a residual debt insurance for impending payment defaults can be completed in advance.
For whom is a loan from Trucredit particularly suitable?
Basically, the online platform is open to anyone who needs money for a private project and does not want to go straight to a bank or another bank. However, the service of Trucredit is particularly often used when the prospect of a classic bank loan is rather low. This applies z. For example, for self-employed persons based on their professional group or for private individuals who can not present a good credit rating for the protection of a traditional loan.
Compared to a traditional bank loan, higher repayments are therefore to be planned when financing via Trucredit. According to the website, donors currently expect an average return of 6.70 percent, and even double-digit interest rates are not uncommon, depending on the project. The borrower should therefore know that he has to repay a higher loan debt than a bank loan, which many accept, however, in order to even get the chance of a loan.
A cheap loan through Trucredit?
Of course, with substantial collateral such as a high monthly income and a less risky project, it is still possible to attract investors for very low interest rates, making the Trucredit loan to the classic bank loan absolutely competitive.
The possibilities of Trucredit for investors
Basically, Trucredit is open to all persons who are looking for an alternative form of investment and want to use their assets to help other people with the implementation of their projects. Compared with traditional savings products of today, the return prospects of private lending are particularly attractive. To participate, investors only need to register for free on Trucredit. Afterwards, they can immediately look at current applications and decide on the right projects for their risk appetite and imagination on an attractive return.
Unlike a savings bond or call money, the interest rates mentioned are not guaranteed, as it can theoretically lead to defaults, even the personal bankruptcy of the borrower. The Trucredit team minimizes the risk of this through multi-level credit control, and the processing of loans through Bank also leads to a serious review and settlement of arrears. There remains a residual investment risk, but this is not different for other high-yielding financial products such as speculative funds. However, it is all the more important when investors carefully examine interesting projects of those seeking money and deliberately spread their invested money with a well-calculated investment amount.