How to Get a Personal Loan without Bank Statement?

29 Sep 2020

Some of you are self-employed. Some of you don’t have bank statements. You need cash. Will you be able to avail personal loan? Read out this blog, it will help you out. Even most of you are thinking that whether there is a provision to get a personal loan without bank statement or not. The answer to this question is yes. Read further to know more.

When your personal loan gets approved, the money will be credited to your account. However, if you do not have a bank account, it becomes a tad difficult for the banks. You may be having lots of reasons for not keeping a bank account on your own. You may be going through a bad financial phase, you have not got a chance to open your first account as yet or your account may have been closed. Irrespective of the reasons you have, banks are often reluctant to approve a personal loan for you if you fail to submit a bank statement.

Why are the banks hell-bent on bank statements while granting a personal loan?

You must be wondering why banks are often hell-bent on the requirement of a bank statement while they go about the process of approving your personal loan. It may seem outrageous to you as to why you should be turned down a personal loan just for a simple reason like not having a bank statement to produce. Well, to a bank, bank accounts are not just a tool to transfer money between bank and individuals. It is more of a mirror of your financial health. If you are a salaried employee, your payment is received in your account and you pay your bills/expenses through your account.  By having a look at your bank statement, the bank gets a fair idea about your income, spending pattern and how reliable you are in repaying your debts every month. Conventional banks have more stringent conditions as they refuse to take any chances. They won’t go by your verbal assurance about your repayment capacity and will go only by the actual proof or visible evidence of your bank statement.

Personal Loan without Bank Statement

No doubt, it is difficult for the bank to approve your personal loan in case one is not able to produce a bank statement and income proof. But for self-employed individuals, the bank has the provision to do the same. For self-employed, banks and financial institutions can offer secured loan to the applicant. Banks usually ask for their property documents as collateral and then grant them the loan. The applicant needs to submit the property document and after this, the bank approves the loan. The rest of the procedure for loan applicant remains the same as submission of address proof, identity proof, salary credit statement and loan application form.

Personal Loan - Highly Helpful in Emergency Situations

In case of an emergency, you cannot wait for the bank to approve your loan. You need money, so what is the way out. Personal loans have come as a rescue in such situations.

You may consider the following options which are loans without bank statement-

Payday Loans- Most of the people, who have newly started off their professional life or are in the early stages of their career, lives paycheck to paycheck. Payday loans are best for such individuals who cannot produce a bank statement. For example, if you have just started your job and have some emergency financial requirement, what you can do is submit the pay slip of your monthly income. Thus, payday loans give you the opportunity to avail a loan without actually worrying about your bank statement. They will just need some sort of a proof that you have a regular income on a given month and no credit check /collaterals would be required. You can check with the lender if they have this provision of a payday loan.

Peer-to-Peer Loans:  This is also known as P2P loan or crowd lending or social lending. It allows the borrower to borrow the loan and lender to lend the loan without a bank account and involvement of any official financial institutions. Since there is no official agency involved in the middle, these loans are risky. The interest rate of such loan is also higher than normal personal loans.

The success (or failure) of such an adjustment depends on the parties involved. For example, if your acquaintances (friends, family or your trusted people) form your ‘peers’ then they will have a better idea about how much you earn every month or whether you will be able to make timely repayments. On the contrary, if your ‘peer’ is ignorant of such information, they might ask for some sort of documents such as your bank statement, salary slip or any other income proof. After the initial ‘ice’ is broken, the parties involved will enter into an agreement which will bind them till the end of the bargain. Depending on the terms and conditions mentioned in the agreement, some of the peer-to-peer loans might require a bank account, but only in the case when the lender cannot be available for some reason to provide the money in person. Therefore, if you do not have any bank statement to submit, you should look for peers that can be available in person to sign the agreement/loan papers.

There are a number of other methods through which you can get loans without furnishing your bank statement. Cryptocurrency loans can come handy if you have bitcoins. Pawn loans can be availed by surrendering old and antique products such as paintings, artifacts, gems, diamonds, etc. at pawn shops. You do not have to provide your bank statement to get these alternate loans.

How can you apply for a personal loan without bank statement?

If you are left with only one option to get your much-needed personal loan without a bank statement you should do the following things in the order specified:

  1. Fill the application form: Fill the application form correctly and the companies will contact you on the phone number provided to offer a quote.
  2. Submit all the relevant documents: Submit copies of your income proof, ID proof and other documents as per creditor requirement
  3. Wait for lender approval: Do have in mind that your lender may take a while to approve your loan request. Do have patience. Once lenders are convinced about your repayment capacity, your personal loan application will be approved.

If your loan application process is completely online and you do not have face to face interaction with your lender, some lenders may want you to open a bank account. It may be an empty one and will be used solely for the purpose of transferring money to you.

Be careful:

It’s imperative that you should be careful enough when you deal with lenders for getting a personal loan without a bank statement. Scammers are available whose only intention is to trap you and get away with all your hard-earned money. On top of this, when you are struggling with bad credit and are looking for untried or unconventional methods to avail a personal loan, you convey the message to some scammers that you are really desperate. This makes you vulnerable and a target for such frauds.

You don’t need to worry though! Just be calculative in your dealings. There are many trustworthy and respected dealers in the market with whom you can make proper and safe dealings. You must make proper reputation research on the prospective lender before you make the final decision. Look for reviews from users of a payday loan. How do users feel about their services? There are enough independent experts for you to seek a reliable opinion about lenders.

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