Today, banks are actually the main players in lending. When people need money and therefore want to take out a loan, it has almost become automatic to go to one of the different banks for this. Logical, because this has also grown over the years and for many people this is just the normal course of events. However, things can be done differently and you can also borrow money without using one of the banks. That is why we already list all the pros and cons when you are going to borrow money without calling on a bank.
BORROW FROM SOMEONE YOU DON’T KNOW
If you don’t want to rely on a bank to borrow money, you can do that through someone you don’t know, for example. In itself it seems strange to borrow money from an unknown person, but the big advantage of this is that the person you are borrowing money from does not know your own situation. This means that, unlike one of the banks, that person may not refuse. A disadvantage can be that the person you lend money to will do everything to get his money + interest refunded. That is why borrowing money from someone you don’t know is really not recommended.
BORROW FROM AN INDEPENDENT SPECIALIST
In addition to the well-known banks, there are now also many independent specialists who really have a lot of knowledge in the field of loans and installments. Often these specialists work together with various lenders, so you can count on dealing with people who are interested in providing loans and not in offering other products.
BORROW FROM YOUR FAMILY OR FRIENDS
When people urgently need money, friends or family are often the first people they want to turn to. They ask their help and then ask if it is possible to borrow a certain amount, at a favorable rate of course. The big advantage of this situation is that you know your person and that you can usually also borrow money at a low interest rate or interest. Moreover, the money can also be available quickly. A disadvantage can be that borrowing money can affect your personal relationship with one of those people, such as your family or friends. For example, should there ever be a misunderstanding related to the financial situation, this will undoubtedly have consequences for your further personal relationship.
BORROW FROM YOUR EMPLOYER
A final option where you could borrow money is from your employer. This can be done, for example, by requesting an advance on your wages or salaries and thus gaining extra money. An advantage of this is that you know the person you are lending money to and that you can borrow money at a low interest rate or interest. A big disadvantage is that it is your employer, with which you do not always want to share all personal information. It is also possible that your work starts to suffer from this financial agreement.