Loans between individuals are increasingly popular in Switzerland. But watch out for scams!
Have you seen an ad for personal loans on the internet? Couldn’t your credit be accepted officially and securely? You may then be heading to the peer to peer loan forums.
This alternative is not really one since these forums are often, and for the most part, haunts created to scam people.
How does a loan between individuals work?
You contact a person following a loan proposal announcement. The message and the loan proposal seem interesting and credible to you. The rates are better than the competition and you don’t have to justify your income.
Suddenly everything becomes complicated. For the payment to be made you must pay administrative fees of up to several thousand francs preferably in cash (to avoid money being traced) or pledge valuables. This is the moment when you absolutely must stop everything.
It may also be that with so-called “credit checks”, you are sent a check with a certain amount and then asked to pay management fees for your file. Again, the case is clear. We must stop everything.
Know how to spot a scam.
Loans of over a million, even 500,000 to 2% interest are 100% scams. Loans as simple, without proof, and above all, simply, as soon as a sum of money is requested, even the smallest, then it is the end of the transaction, you must end this request, it is a scam.
In reality, the law is very simple. To lend money in Switzerland, you need a “license”. It’s like a dentist, or a doctor, who needs a diploma, to practice his profession. To lend money, you must either be a bank or be a certified banking partner.
It is important before taking out a loan to take several precautions. Check the identity of the company, on the commercial register here. If you have any doubts, make an appointment and meet the company that offers you money. Above all, above all, never borrow money from an individual.
It is an extremely risky practice which it is better to keep away from.
Between individuals, or by individuals?
There is a new way to finance private credit in Switzerland, with individuals. We call it crowlending. These are not banks, but online platforms that bring together borrowers and investors. These are very serious companies, which offer new conditions to customers. Our partners YeSavers Finance, or Delta-77 Finance already offer this kind of loan, but the offer is growing months is also an important player in this kind of crowlending loan.
It is important to differentiate between these companies, loans offered by unsavory individuals, who only seek to build a scam, and offer nothing in the end.
Want a risk-free loan?
So don’t wait! Switzerland is a country which has its share of administrative complications, but which provides consumers with offers in complete safety.
Apply at an approved company. There are many very good companies in Switzerland, serious, which assure you a credit in full safety. Good Lenders Credit processes your request in a few minutes, free of charge and without obligation, in search of the best rate and gives you an answer within 24 hours.