If you need more money than you have at hand, you can take out a loan. If you cannot get credit from your bank or get want you can also may take out a personal loan. You lend yourself the money “simply” with friends, relatives, your employer or other private persons. We tell you here, when a personal loan is worthwhile and what you should borrow when borrowing from a private person.
Banks issue consumer loans for private purposes or to individuals. Such loans are often referred to as personal loans. This refers to a loan from a bank for private individuals. The word personal loan is also commonly used for loans from private individuals. Unless otherwise apparent, we use in this text the word “personal loan” in terms of “credit from private individual to private individual.” The use of the private money lender Singapore is important here.
Personal loan: advantages and disadvantages
- Borrowing money from friends or relatives has several advantages over a bank loan. One thing is certain, that if you know someone who has the money and is willing to entrust it to you, you can easily get the money. As a rule, the lender knows you and trusts that you can and will repay him. On a credit check is waived with such a rule in most cases.
- Even high interest rates are generally uncommon. In most cases, the loan is considered a friendly service, following the motto “just give it back to me and if you really do not want to thank me with wordsand then just invite me for a beer and you’re done”. In a friendship, it should also be possible to renegotiate the repayment, if financially something should intervene and you cannot repay the money for a month.
- But this can also be the biggest problem with such personal loans, because the sentence “When money listens to the friendship” is not completely out of thin air. Not only many partnerships and marriages are breaking due to money disputes. The dispute over money can also destroy friendships between best friends who have been sandboxed for over thirty years.
Probably your best friend will not even think about making you a scene when you unexpectedly need to drive into the garage and need the money. But if something like that happens all the time and he always has to run after his money, he will surely end his patience at some point. It’s the other way around. Suppose your friend gets into a situation in which he wants to have the borrowed money back quickly. If you cannot afford that, then a fight is inevitable.