Private Personal Loans

Private personal loans have one main characteristic - they are given from one person to another, not from a bank to a person.

While this type of loan is generally given from one friend or family member to another, there are also individuals who provide personal loans as a way to make money for themselves. These loans usually lean toward the hard money end of the spectrum instead of toward the traditional bank methods.

When you take out a private personal loan, the lender will usually place a lien on one of your assets. If you don't pay back the loan, they take your asset.

When people lend money this way, they usually operate on a 'point' system. They will usually charge you one point (interest point) in interest for each month you require their funds. In a year's time, this usually ends up being quite a large amount of money but if the term of your loan is short it won't end up nearly as bad.

The dirty truth about this type of a loan is that it definitely isn't recommended for individuals that can secure their funds through a bank. A bank will generally give you a better interest rate on your loan and will also be more lenient when it comes to repossessing your property. Generally speaking, a private lender can take your asset immediately upon default.

External Resources:
List of Private Lenders
Hard Money Lenders