Loans from private individuals

A loan is usually associated with a bank, but there are alternatives. People of all ages, up to pensioners, can apply for a loan without a bank, whether they are employees, civil servants, freelancers or self-employed. These private loans are generally financed by private individuals who are willing to grant a loan without a bank.

Loan without a bank through online portals

Various online platforms offer the possibility of obtaining loans from private individuals and thus secure financial freedom even without a Schufa entry or in case of a negative Schufa entry, which is a clear advantage. For the private individuals willing to invest their money in a loan without a bank on these platforms, the return is of course decisive. Basically, no special prerequisites are required for this type of loan.

Application for loans without a bank

Anyone who needs financing and requires a certain loan amount can submit a non-binding application for a loan without a bank. Even people with negative Schufa entries and poor creditworthiness or existing loans at a bank can apply for this loan. Certain documents are also required for an online loan without a bank; these must be sent to the loan intermediary after the loan offer has been received.

If the borrower is employed or in service, this usually includes a copy of the employment contract and copies of the last payslips. For online lending, including for a loan without a bank, the documents are often sent using the so-called Post-Ident procedure. In this procedure, the borrower goes to a post office branch and the staff there confirm the borrower's identity to the lender by inspecting the identity card.

Loan inquiry: purpose and terms for a loan without a bank

The inquiry regarding a loan without a bank is completely free and non-binding. The borrower simply fills out the forms provided by the providers and submits them online.

It usually does not take long until the borrower is offered a free quote for the required loan amount, even for a loan without a bank. Up to that point no loan contract has been concluded and the borrower can read and review the documents at home at their leisure.

A loan inquiry for a loan without a bank does not negatively affect the so-called Schufa score values. Only when the borrower agrees to the loan without a bank and returns the signed loan application along with supporting documents, and this is finally reviewed and accepted by the lender, does the contract for the loan without a bank come into effect.

The granting of loans without a bank via private individuals and corresponding brokerage platforms is not tied to a specific purpose. It does not matter whether the loan is used to purchase a new vacation, for a major renovation or refurbishment of one's own house, or simply for the debt restructuring of other loans.

Repayment for loans without a bank

Additional services such as special repayments or skipping one or two installments per year can also be agreed for a loan without a bank. In many cases, these services are already part of the contract to offer the borrower more flexibility.

If something unexpected happens, a payment break can usually be arranged quickly to relieve the financial situation.

Conversely, if more money is available than expected, one-off special repayments can usually be made once a year to repay the loan without a bank more quickly. For smaller amounts and with various providers, an instant approval for a loan without a bank is possible.

The different lenders, also called investors, offer terms ranging from 12 months up to even 120 months. This gives the customer, even for a loan without a bank, the greatest possible flexibility regarding the term. A loan calculator can be used to get the best possible overview of which term makes sense for which installments.

Alternatives for obtaining a loan without a bank

Of course, there is also the possibility of receiving a loan without a bank from friends or relatives. Such a loan does not have to be merely a favor, but in most cases it is considerably cheaper than a traditional bank loan.

The lender for the loan without a bank, in this case a good friend, acquaintance or relative, is able to provide the required sum of money and lend it to the borrower under certain conditions. The chance of getting an instant loan is particularly higher with friends or relatives. An instant loan guarantees quick disbursement of the loan amount. Disbursement can be made in cash or by bank transfer.

This loan agreement should also be put in writing to protect both parties. Preferably with a witness. In this written loan contract the loan amount, the term as well as the monthly installments and any interest should be agreed in writing.

In most cases no or only very low interest is charged for these loans without a bank, so they are a cheaper option compared to bank loans and other loans without a bank.

Who can apply for a loan without a bank?

In principle, anyone can apply for a loan without a bank, whether employee, civil servant, self-employed, small business owner, freelancer, civil servant, trainee or pensioner. Even people without regular income or with negative Schufa entries can apply for a loan without a bank.

The lending and the conditions attached to it then depend on the different providers of such loans. As a rule, however, it is much easier to obtain a loan without a bank if no loan was granted by their house banks.

Thus, people with poorer creditworthiness also have the opportunity, for example, to finance the car that is absolutely necessary for a new job, and founders have the opportunity to acquire the necessary working capital to get their newly founded company up and running. Where banks may place more emphasis on collateral, this point is often not as decisive for a loan without a bank.

Anyone who wants to apply for a loan without a bank should, in any case, as with any other loan, inform themselves thoroughly about the different options in advance. Compare different interest rates and terms and, after careful consideration, submit the loan application to the provider they consider best.