A personal loan is a short-term loan availed to meet financial emergencies. Personal Loans are also called Emergency loans. These are unsecured loans as the lender doesn’t ask for any collateral/security. This is the reason why banks charge a higher rate of interest on personal loans vis-a-vis other loans.
Getting personal loans with no bank account is almost impossible. Banks ask for statements as a proof of ability to repay loans. After the loan is sanctioned, money is sent to your bank account. If you don't have a bank account, things may get complicated. So, does it mean you have to open a bank account to avail a loan?
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Can you postpone emergencies just because your loan gets rejected? In these situations, you may consider payday loans and peer-to-peer loans that don’t require bank statements.
A bank account is not just used to transfer the loan amount. The bank statement is a summary of the transactions routed through that particular bank account. It is a reflection of your financial transactions like salary receipts and bill payments. Thus, a bank statement is evidence for income and ability to service EMIs.
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Many people opt for personal loans when it comes to emergencies. However, in the absence of a bank statement, you may consider these options:
1. Payday Loans:
Most salaried individuals who are early in their career live paycheck to paycheck. But emergencies don’t consider this. Hence, Payday Loans. These loans are offered in exchange of proof of monthly income like a pay slip. Usually, payday loans don’t require collateral.
While most lenders offer payday loans without a bank statement, it is good to check if this facility is extended by the lender.
2. Peer-to-Peer Loans:
Peer-to-Peer Loan is popularly known as P2P lending, social lending and crowd lending. Peer-to-peer lending allows you to borrow and lend money without having a bank account and the involvement of an official financial institution. While peer-to-peer lending eliminates the need for a middleman, it is more time consuming and requires a lot of effort and is risky compared to bank loans.
Whether or not income proof is needed, depends on the peers or the concerned parties. If the peers are family, friends or acquaintances, they will probably have an idea on your financial position. Hence, they may not require you to furnish any income proof.
If you and the peer have not interacted closely, they’ll probably not know your financial position. They might also not know how responsible you are with payments. Therefore, they might ask for income proof like a bank statement or pay slip. After everything has been settled, both parties will sign a contract that will make them hold onto their end of the bargain.
See also: Types Of Cheques
The process of applying for a no bank statement loan is as follows:
1. Fill out all the details in the online loan application form.
2. The lender will contact you and offer a quote.
3. Get all your documents together. You may need a copy of your ID proof and income proof.
4. Wait for lender approval.
It might take longer than bank loan approval. After they are sure of your intention and ability to repay the loan, they will process your documents and sanction the loan.
Few banks sanction personal loans without income proof and documents. They count on the relationship that you both share. If you’ve maintained a good relationship with the bank, if you have been making timely repayments and if you have a clear credit history, the bank may offer a personal loan based on only the details already available with them.
You may try the following to avail a personal loan without documents:
The internet is filled with scams and scammers. Individuals with bad credit start looking for unconventional methods to get loans.
Do your own background verification of the lenders and read their reviews. Don’t read the reviews blindly. Look for legitimacy. It’s not hard for robots to comment these days.
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