This can be also termed as the comparative lending or social lending. This is the way in which lending money will take place between the individuals. For example,a personwho is having extra cash will agree to give it as a loan to the other. By this you are going to agree on the interest, repayment time and the amount. It is better if the individuals know each other and the lending takes with the smaller amounts and this will become more informal and better. When they are going to meet each other again, they can clear the loan, and this can be better with smaller amounts. If the amount which is going to be lent is higher then it goes with the written agreement with the repayment time, period, interest mentioned. You can also get more info regarding this at http://www.carma.fi/vertaislainat/.
Getting the loan
Offering the p2p loans or the peer to peer lending will be on the basis that the concept of the business by the companies on the ancient principle. Lending each other the money. Today with the help of the technique of the state of the art, it became very easy to people get connected who are wishing to borrow the money and also who like to lend the amount or the money than it was which was a little difficult task. Some of the companies within this business are being particular or specialized in mediation of the loans to smaller business instead to the individuals who areprivate, and this phenomenon can be termed the crowd sourcing. For the sake of the larger development, all these kinds of loans and the investments are a part where in financing with the new ways develop alongside banks and the other financial institutions which are the traditional ones. We can call it as the sharing economy.
The nature of the contracts will be divided into the number of two. Trusted lovers and the relatives who are in this loan are social in the genes and if we see in deep, the richer or the wealthier will like to help the other and therefore this is the reason they want to lend the money on favourable terms generally. For this we can take an example like parents can lend money to their children for them to buy a flat or an apartment. The second trend is that it is more in the investment nature with the money at the higher interest rate the terms can be agreed with the securitieswhich are put in place. This loan may be an investment which is partial. here the lender will receive a stake in the company or also they can change into shares the part of the debt which is lent.