Social loans allow you to get an additional sum for practically any purpose. We can get them online without leaving home. We borrow not from the company, but from other people who also use social lending services. We can also become a lender on such a website – the lenders are then called investors.
We can also use social loans in Poland. Thanks to them, we can get money quickly and conveniently, on terms that we determine ourselves. All we have to do is register on the social loans portal and pass the appropriate verification. These services are used not only by those who want to borrow money, but also those who want to earn.
How to become an investor on social loans portals?
If we want to decide to become an investor, we should meet the requirements of the social networking site we chose. Most often we have to go through the appropriate verification, for example by making a transfer from your bank account.
Therefore, everything can be done completely via the Internet, we do not have to leave the house to settle everything.
How much can we earn from social loans?
Most often, the minimum investment amount is PLN 100, while the largest one for the auction of one lender, we can invest about PLN 5,000. On one loan, we can earn from a dozen to several dozen zlotys depending on the interest rate.
The average return on investment resulting only from the loan interest rate is around 16%. However, the maximum profit resulting from loans is up to 28% during the year. It is therefore a much better result than in the case of deposits and other investment methods.
As an investor, we can choose the loan auction ourselves, in which we want to invest. We must pay attention to who we want to borrow money from. This is what the security of the offer depends on.
How to reduce the risk of social loans?
Above all, we should pay attention to selecting a borrower who will be well-verified, preferably to have already several loans repaid. Such borrowers are more certain, because then the chance that they will pay off the commitment is greater.
Of course, we must also remember that there is always a risk that we will not receive the return of the borrowed money. We must also take into account that the loan will not be repaid in a timely manner. In this case, recovering money can be quite a big problem. Generally, we can sell our debts to a debt collection company through the system, but we also have to remember that we will not get back such a high sum as the one borrowed.
Let’s also remember to diversify loans, that is, do not devote all of our money, which we want to invest, just for this purpose.
It is better to borrow a few smaller sums than one large one. Then, even in the case of problems with one loan, others will be repaid.