When people started financial crisis. We look into many other sources where we can get way to reach those needs. Here also same thing. People who's credit history is bad and not able to find loans.
They look into many other sources like Private funding, Financiers and NRI funding. We will discuss later about NRI funding how it happens who is going to fund?
Who are the people involved in Private Funding? Here people who have financial stability the give out for higher rate of interest. Like mortgage some of the materials or land house documents. They need security for the same. Second thing is which giving out private finance the value of the mortgaging things should be higher than the borrowing amount. Say for example if your borrowing amount is 10k, the value of mortgaging item should be 20k. Then there will be period of agreement between them.
What are the risk involved?
When the borrowed person if not able to return on time. The way financier treats is little rash. Or any legal actions to be met.
Private financing is really dangerous.
Good info. But whats the alternative for private financiers ?
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