Our list of social loans presents only current loans – all data are updated and updated on a regular basis. The current offer of social loans in one place is a good opportunity to make a comparison of social loans, taking into account all relevant parameters: interest, interest rate, costs, minimum and maximum loan amount, APY, form of payment, promotions and bargains.
What is a social loan?
A social loan is also known as a social loan or – from English – social lending. This form of borrowing money is very popular, among others, in the United States, but it is rather a novelty for us, which many people approach with a large reserve. Social lending is based on an agreement between two private individuals, one of whom has money and the other wants to borrow it. In order to collect both sides of the loan agreement, websites are created, which provide tools enabling mutual search by the lender and the borrower. For their services, portals naturally charge fees, usually in the form of commissions on concluded loan agreements. A bank or any type of financial institution is not involved in a social loan. Each participant of the community integrated within the portal can play both the role of the borrower and the borrower. The internet portal does not participate in the loan procedure and there is no outflow for arrangements between the parties to the loan agreement. The function of the portal is only to collect a loan community and initial verification of the registering persons – thanks to this, it can be a cheaper and more flexible option to borrow money than, for example, a weekend.
Are social loans safe?
All persons who register on dedicated, online loan websites servicing social loans are carefully verified. Any person who creates an account can be checked for credit history in order to ensure maximum security for lenders. Just like in the case of traditional loans and credits, the loan agreement provides the interest rate and the repayment date of the loan. In social lending, no certificates or documents are required – the procedure is maximally simplified and often such loans are available even for those who have been denied in banks, parabanks and loan companies. The loan is granted on the basis of a subjective assessment of the borrower’s credibility, which is carried out by the lender on the basis of the information available in the “loan request”, where the needy specifies the amount, repayment date and purpose of the money. The interest rate on a social loan is very flexible, as it is agreed between the persons signing the contract. If the lender judges that the risk of the loan is low, then he can agree to low interest, whereas if the borrower appears “suspicious”, then the offer will be less attractive. Thus, from the point of view of a person in need of money, a social loan is safe, cheap and easily available.
Advantages and disadvantages of social loans
The decisive advantage of social loans is their availability. In this form of borrowing, we avoid the formalities required in the bank: workplace certificates, US and ZUS. The interest rate is usually lower than in companies offering payday loans and all details (interest rate, repayment date, loan amount) can be negotiated. All this translates into a low total cost (RSSO) of the loan, compared to the offer of banks and other institutions involved in lending activities.
For people lending money, social lending is a way to earn and multiply their own capital, but this type of activity involves a risk that you need to be aware of.
The first loan is usually limited to a few hundred zlotys, but the next loan may be higher and even large amounts. There is no technical limitation on the amount of the loan, however, this situation is associated with higher risk, therefore obtaining a high amount is rather difficult, though not impossible.
Is it worth using a social loan?
A social loan is, in a way, a novelty, and that’s why many people do not trust this form of financial aid. Otherwise called social lending is an online loan available 24 hours a day, throughout the week. It is an alternative that many people still use, because it has many advantages that banking products do not have. Like everything, a social loan also has drawbacks, but in some cases it can be the only way to get cash fast on favorable terms. In the social media age, a social loan is part of the current trend to build communities that connect specific needs.