Loans from private persons is not a new thing: many of us at least once in a lifetime lent several hundred rubles from friends, relatives, colleagues or neighbors. Unfortunately, not always the friends are able to take a large amount, especially if money is needed for long term. In such a situation are ready to help private lenders – citizens offering loans for a fee.

Who becomes a private lender?

Most individuals that provide similar services – they are former employees of credit or financial institutions, with experience on granting of loans. Among them are just wealthy people who have cash and want to earn an income from their placement.

Where to find private lenders?

Advertising services results private loans are easy to find in the Internet, in Newspapers, free ads and just pasted on lampposts or fences located in public places. By calling in the announcement of the phone, you can learn the basic information related to conditions of borrowing, as well as to obtain some information about the person willing to provide loans.

How to choose the right lender?

Needless to say that, before you sign a loan agreement, it is necessary to learn about the personality of the creditor. Experts believe that you should not trust people that offer you to meet somewhere on a bench in a Park or at a stop of public transport, so the risk of running into financial scams. Respectable and self-respecting private lenders usually have an office where you do business, often they have their own website online where they advertise financial services.

What should be written in the loan agreement?

First of all, it must be specified the basic characteristics of the loan, namely:
- sum;
- loan term;
- the interest rate;
- the procedure for the issuance of the loan;
- procedure of payment of interest and repayment of the principal;
- penalties for delay in the payment of interest or non-payment of the debt.

In addition, the contract must contain: date and place of its drawing up, a surname, a name, a patronymic and passport data of both parties.

How can we protect ourselves from scams?

Of course, Yes: it is necessary to observe some simple rules:
- carefully read the agreement and check whether it contained suspicious or extremely unprofitable for you;
- assure the loan agreement at the notary or sign it in the presence of 2 independent witnesses;
carefully check the authenticity of transferred you money;
- always generate receipts when you send money: the loan, its repayment and interest payment.