The so-called private lending refers to loans applied by private lending institutions other than banks. Usually, the audit of such institutional loans is not as strict as that of banks, but private loans often bear relatively large risks and the interest of private loans is generally higher than that of bank loans. So what are the ways of private lending?

What are the ways of private lending?

1 pawnshop

Usually, the loan applied in the pawnshop belongs to pledge loan or mortgage loan, which is a common way of private lending. Generally, the loan amount and interest rate are determined according to the value of the pawn.

2 private financial companies

Generally speaking, private guarantee companies help loans to handle credit services. Usually this kind of loan is relatively loose and easy to pass.

These are the two main ways of private lending. It should be noted that when choosing private loans, you must choose legal lending institutions, otherwise you may fall into usury if you are not careful.