That the financial world is quite creative in naming financial products is not only known since the great financial crisis. Even today, a name appears more and more frequently in finance, which until now was hardly known: we are talking about the so-called swarm loan ! Never heard? It may well be, but the idea along with its designation is not completely unknown, because the origin of this supposedly new form of credit lies in the terms crowd investing / crowfinancing. These terms may well be familiar to most people, right? But what is a swarming loan? A real innovation or just a new title for something already long known? Let’s just do a bit of education with this article.
Old wine in new tubes – the swarm loan
In principle, the swarming loan is based on the following circumstance: Anyone who wants to lend money privately has already tried in the run-up to many banks and was rejected. But that does not mean that you do without your credit. So you usually go on the Internet looking for alternative financing options outside the bank. The result of this search usually ends with – right: personal loan, as it is offered on numerous specialized platforms. As the name implies, a loan from private individuals is given to individuals outside a regular banking system. If one assumes now that several private individuals participate as investors in a credit project of a loan seeker, this is usually understood as a “swarm financing” ergo this is according to the latest understanding, so a swarming loan. Does it sound familiar, but under a different name? Absolutely right, because usually such a loan has been understood as a so-called personal loan – at best as a peer to peer loan.
Decisive question: is the personal loan or swarm loan worthwhile in the first place?
Basically yes, because a personal loan or even swarm loan is interesting for all those who have not received any loans from the bank. However, it is wrong to assume that this is a loan without SCHUFA. This is not the case, but the evaluation of SCHUFA information by the potential lenders is quite different. In the form that you hedge for a higher credit risk with significantly higher interest rates. What shows up in a current interest rate range between 3.5 and 16 percent. In addition, a one-off fee of up to four percent is due on the known platforms for a Swarm Loan. In addition, there are fees for credit management and account statements added. As a result, although the personal loan / syndicated loan may represent a loan alternative, but is also correspondingly expensive.