Roll-over credit, P2P and microcredit – what is it?
Over the years, there may be situations in both the private and professional environments where borrowing is necessary. The savings are not enough for the upcoming issue, which in turn can not be deferred. In doing so, every loan seeker stumbles across technical terms, such as roll-over credit or P2P credit. But nobody knows, without being more concerned with what these terms really mean and for what you can use these loans. The loan seeker can choose between very different loans in the commercial and private credit markets. Three not so well-known forms of credit are briefly introduced and explained here.
Roll-over loan with current interest rate adjustment
The roll-over loan is usually a medium or even long-term loan, comparable to a home loan. The agreed effective interest rate does not apply to the entire term of the loan, but to a first fixed-interest period. Their duration is agreed in detail with the lender. Here differ the offers, so that at this point a credit comparison is worthwhile. Usual fixed interest periods are several months to one year. The loan as such will not be renegotiated, but it will be over the interest rate. Reasons for changing it may be a new situation on the credit market or a change in the creditworthiness of the borrower. The roll-over loan can be terminated after the respective period expires or it can be continued with a newly agreed interest rate.
P2P Credit – Private individuals lending
The English peer to peer, to German from private to private, makes it clear that in a P2P loan money from private individuals to private loan seekers will be awarded. The P2P loan is therefore a real personal loan because the lender is not a commercial enterprise but a private person. The P2P loan is offered on its own online platforms on the Internet. The loan seeker receives here the opportunity to present his application and explain in detail. For the rating, the private credit score is decisive, but usually not decisive. For legal reasons, the personal loan is settled with repayment and repayment via a bank licensed as a universal bank under the German Banking Act. We can recommend the following providers for this:
Microcredit as start-up financing for micro-enterprises
For start-up entrepreneurs and young entrepreneurs with a financing requirement of a few thousand euros, microcredit is an alternative to the bank-standard installment or credit line. The Federal Government has set up its own fund for this group of people in the early 2000s. The microcredit is applied for by certified and accredited microfinance companies. You are the first and direct contact person for the loan seekers. The microcredit is handled by the joint bank for loans and gifts, GLS Bank, which is based in the Ruhr district of Bochum. In addition, the local bank offer their own microcredits in some federal states in order to promote the establishment of small and very small companies.