Hello Malers,
I have been observing Smava for quite a while. However, I am neither active there as a borrower nor as a lender, but occasionally read along in the forum.
The interest rates there vary greatly because the rating is based on the Schufa score. The worse the score, the higher the default risk, and the higher the interest rates. Since apparently many unpredictable customers are referred to Smava by banks, the default risk is higher than with regular banks, and accordingly the interest rates are also somewhat higher.
The maximum loan amount currently at Smava is €50,000. However, depending on personal financial circumstances, the maximum loan amount can also be lower.
The requirement for self-employed individuals is that the business has existed for at least 3 years and corresponding financial statements/tax returns are available.
You have 2 options there:
1. Private loan
There, you can try to approach the optimal interest rate within a certain time frame.
You start with a low interest rate and then slowly increase it.
From a certain interest rate, the first lenders start to participate in your loan in increments of €250. If you offer too low interest rates, the loan will not be fully or partially funded.
You can then decide, for example, if you are satisfied with only €40,000 or if you want to set it again with a higher interest rate.
But at least 50% of your loan amount must be reached.
2. Instant loan
Here Smava assigns an interest rate where they know that the loan will be fully funded by lenders immediately. So you will quickly have your maximum loan amount secured.
Option 1 can therefore be cheaper in terms of interest rates but is also riskier if you urgently need the loan in terms of time.
Since no collateral is deposited for this loan, it is more comparable to a consumer loan than to a mortgage loan. Generally, only terms of 36 months and 60 months are selectable.
All other terms from 12 to 84 months are processed through some banks.
Disadvantages of Smava
- Terms too short for mortgage financing
- No options for special repayments
- Higher interest rates than secured mortgage loans
Advantages of Smava
- No collateral is required
- Full repayment is possible at any time free of charge
- Often self-employed also receive loans.
A small tip from me... if you decide to do this via Smava, then read something in the Smava forum beforehand and describe your project (do not use the predefined text blocks from Smava). This is better received by the lenders who want to see what they are investing their money in. By now, the returns for lenders after deduction of fees, pool payments (protection against defaults), and taxes are quite small.