Loan risks between individuals

With the crisis, the lending of loans by banks has been severely limited, which is why large credit platforms have appeared among individuals that cover this current market need. This type of business is booming and has achieved spectacular growth in our country.

An example of this is Legendary 


A newly created company that only managed to manage more than 25 million euros in 6 weeks with interests that varied between 3% and 15% although these may be higher. These loans are made between individuals where lenders can invest from 25 euros in exchange for getting interest close to 20% of the cash per year.

Community is another of the most important platforms in this sector in Spain and since 2009 it has managed to manage several million euros with this type of operations.

First glance it may seem beneficial for both parties

First glance it may seem beneficial for both parties

And although at first glance it may seem beneficial for both parties, the reality is that there is a high risk, in the first place, for the formalization of the loan, since in many cases, it can be understood by the Treasury as a donation in which it would be necessary to pay the donation tax and secondly, the risk on the part of the borrowers of a default. In Spain, it has meant a new way of investing since instead of depositing savings in a bank, they are transferred to these platforms in order to get a better return after a few months. There is no doubt that it is an investment and therefore, as any of them, it implies a risk that must be assumed.

On the borrower’s side

It is also necessary to emphasize that these types of private loans are not regulated by the Bank of Spain and are helpless in case of possible abuse. In addition, to proceed with the credit, the DNI and the mortgage guarantee are required as a value, so that if the money cannot be returned, the lender could take the property to public auction.

Therefore, if you need a quick solution to your liquidity and financial institutions do not grant you any loan go to the Good Credit search engine where we will help you get money quickly and safely by granting legally regulated mini credits and where you are backed by Registered company

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