Month: September 2019

Advantages and disadvantages of borrowing money from family

by admin

Do you want to borrow money from family? Borrowing money does not always have to be done at a bank or other financial organization. For example, it is increasingly common that (especially young people) choose to borrow money from their families. This can not only be about the parents, but also about, for example, an aunt or uncle, an uncle and so on. Borrowing money from family naturally has the advantage that you borrow from someone you trust. If things go well, you can also borrow on financially interesting terms. However, it must also be borne in mind that borrowing money from family is not always interesting. To ensure that you have a clear picture of all the advantages and disadvantages that borrowing money from family brings, we have listed them all extensively on this page for you!

Benefits of borrowing money from family

Benefits of borrowing money from family

The moment you choose to borrow money from family, there is actually a so-called 'private loan'. Such a loan is, as the name suggests, not taken out with a financial institution, but with, for example, a friend or a family member. This brings a number of very interesting benefits that we obviously do not want to withhold from you.

Private loan

In the first instance, borrowing money from family means borrowing money from a person you know and trust. This immediately gives a lot of (potential) borrowers a better feeling than if they chose to use a bank or other professional lender. Moreover, it is not uncommon for a credit agreement between family members to be concluded orally. Despite the fact that this often causes problems in practice (more on this later on this page), it does cause a relaxed feeling. The financial pressure with a private loan between family members is therefore often much less.

The costs are more limited compared to those at a bank

It is often not the intention that the family you grant a loan does to make big profits on the contrary. In the majority of cases, a private loan is concluded between family members as a form of 'goodwill'. The consequence of this is that the costs can be considerably lower compared to a traditional personal loan from a bank. In the most optimal case, it is even possible that the loan you took out with your family will not cost an extra amount. A family member who grants a loan is not legally obliged to make a profit from it. The credit must be repaid at a certain time. If not, there is a gift and there are strict (er) rules attached to it.

For temporary payment problems, high costs are not immediately charged

The moment a family member shows willingness to lend you a certain amount of money, this usually means that he or she has the best intentions with you. It is therefore often not the case that in financially less favorable times large costs will immediately be charged on the private loan that you have taken out. This of course does not mean that you have to abuse the situation. Try to avoid payment problems as much as possible, but if they do occur unexpectedly, you can usually come up with a solution together with your family member. This is usually a lot less simple with a normal bank, certainly when there is a personal loan.

Disadvantages of borrowing money from family

Disadvantages of borrowing money from family

The above advantages will of course sound like music to many potential borrowers. Nevertheless, it is important to bear in mind that there are by no means just advantages to borrowing money from family. In certain cases, things go completely wrong, causing the bond between the two family members to be damaged once and for all. It goes without saying that you will do everything to prevent this. In order to make you aware of all the possible disadvantages associated with taking out a private loan with a family member, we have also carefully listed these points.

Always prepare a written agreement!

It is very common for a private loan between family members to be granted on the basis of an oral agreement. Of course it is normal that you trust each other, but it is and remains a financing. At the moment that something goes wrong, neither party has the possibility to invoke a certain legal basis, on the contrary. This can ensure that agreements made are distorted, causing considerable damage to confidence. Make sure that you both have the necessary security and always record the agreements made in a private agreement. Only in this way will your good (trust) bond always be preserved!

What about financial problems at one of the two parties?

A natural person is not a financial institution. This means that there can always be a certain situation that causes the lender itself to get into trouble. If you then have a written agreement for the private loan, you can rely on it, but fun is of course different. The same applies to the borrower of the private loan. He can also be confronted with extra costs at a certain moment, which could jeopardize the agreed repayment. In both situations this can cause considerable damage to the bond between the two family members. So there is a chance that your relationship will never be the same afterwards.

Conclusion; borrow money from family, do it or not?

Conclusion; borrow money from family, do it or not?

For many people it is not so much a choice, but rather an obligation to borrow money from their family. For example, they may have a BKR code, which means they do not have the possibility to borrow money from a regular bank. If you are confronted with unexpected, high costs, for example, a private loan with a family member can be a welcome solution. The moment you start borrowing money from a family member, it is always important to take into account the possible disadvantages associated with it. Are you experiencing problems at a certain point, as a result of which you cannot repay the loan amount in accordance with the agreement? That could possibly irreversibly damage the bond between you and your family.

A mini credit via a balance dip

by admin

Eicredit

Eicredit

Eicredit is one of the providers of mini-credits, which can be taken out online or via a text message. The name of the website is derived from the term 'balance dip', which e veryone may experience at the end of the month. The money has run out and the new salary is still waiting. At that time you can use the services of Eicredit, namely borrowing a small amount. A mini loan is in fact no more than a small loan with a very short term.

Eicredit and Zaloan

Zaloan can be considered as the first company that has offered the possibility to provide mini-loans in the Netherlands. They were earlier than Creditmash, Creditmini, etc. Eicredit was founded on the initiative of Zaloan, which has extensive experience in offering mini-loans and flash loans, and Zaloan is therefore not without reason considered to be one of the European market leaders regarding the provision of mini-loans.

Register without obligation at Eicredit

Register without obligation at Eicredit

One of the big advantages of Eicredit is that everyone can register without obligation. This is an advantage, because an application can be processed quickly when it is made. Your data is then already known at Eicredit. Moreover, there are no costs associated with registering, so you only have to pay if you actually use a mini loan. Borrowing money through Eicredit naturally costs money, because there are service costs for the money that is lent.

Mini loan from 50 euros to 500 euros

Mini loan from 50 euros to 500 euros

At Eicredit it is possible to borrow amounts between 50 euros and 500 euros. No higher amounts are provided in the form of a loan, as research has shown that consumers mainly borrow amounts up to a maximum of 500 euros. For borrowing large amounts you can go to regular institutions, which also have a longer duration.

Duration mini-loan at Eicredit

Duration mini-loan at Eicredit

A mini loan at Eicredit of 50 euros has a term of fifteen days. For amounts between 100 euros and 500 euros you have the choice of two durations. In that case you can opt for a duration of the mini credit of 15 days or you can choose a duration of the mini credit of 30 days. The costs of the mini-credit to be charged will be lower with a term of fifteen days than with a term of thirty days. If you opt for the short term, then you will lose fewer costs. Incidentally, for borrowing an amount of fifty euros, you can try out the service of Eicredit for free. No costs will be charged for an initial application of fifty euros. This way you can get acquainted with Eicredit in a non-binding manner.

Mini credit application process

Mini credit application process

If you are already registered with Eicredit you can immediately use the service and otherwise you must first register yourself. The registration will be assessed immediately and if the conditions for acceptance are met, a customer card and pin code will be sent immediately to the address provided. In that case it usually takes a working day to be able to use the services of Eicredit. All the more reason to register in advance, so that you can always rely on the service and receive a mini credit. With the received pin code it is possible to receive money online or via a text message in the bank account. This only requires confirmation of order, after which the desired amount of money is deposited into your bank account. You can do that within ten minutes.