Recently p2p lending service Smava.de introduced a new offer aimed at borrowers that want to refinance a loan they have at a financial institution. If the loan request at Smava is funded by lenders, Smava will deal with the financial institution directly acting upon a certificate of authority signed by the borrower.
The loan amount of the new loan is not paid out to the borrower – instead it is directly transferred to the financial institution paying off the previous loan.
There is no extra charge for this service (the normal loan fees apply). Smava makes it easy for the borrower to replace conventional bank loans by peer-to-peer loans.