Most of the time when you apply for a loan, lenders would ask for your bank account. However, you don’t have one. So what now? Would it still be possible for people without a bank account to get a loan? The answer is yes! There are some loans out there that are available for people without a bank account. However, your choices would be limited. Usually, you could only get a small amount in a short-term loan. You may opt for an unsecured personal loan or to your local 5-6 lenders.
These types of loan would usually require you to put up a collateral or submit documents so they could verify you income and capacity to pay off the loan. Additionally, you would also be slapped with a high interest and other fees compare to those with bank accounts.
Let me tell you your options and why most lenders require a bank account below:
Why Bank Account is Usually Required
Most banks, financial institutions and even private lenders would require you to have a bank account upon borrowing. They treat bank accounts as a proof that you have a regular income which could mean that you are less of a credit risk and you have the capacity to pay off your loan. It would also seems like you are responsible enough to keep your money in the bank. This is why most people who does not have a stable source of income, like freelancers, is required to submit thei bank statement.
What are Your Loan Options When You Don’t Have a Bank Account
People who do not have a bank account could opt to these options:
Pawn Loans
When you have something of value that you are not really using like watch, gadgets, jewelries. You could go to your nearest pawnshop them pawn them in exchange for money. They could lend you money for a short period of time.
Pawnshops would not require you to submit a bank account or even a background check as long as you have a valuable item to pawn.
Most pawnshops would not run after you when you failed on your payments since they could sell your item to cover for the loss.
Private Loans
You could look for private lenders including those that offer online loans, payday loans that do not require bank account.
To qualify for these kind of loan you would only need to sign up their form and be atleast of legal age. They may also require some personal information like contact details and a valid ID.
This process only take minutes and you could already get your money. You just need to be careful since they usually have high interest and penalties for late payments.
Key Takeaway
It is possible to get a loan without a bank account. However, you should always weigh your options. Check the pros and cons before you proceed with any applications. They treat bank accounts as a proof that you have a regular income which could mean that you are less of a credit risk and you have the capacity to pay off your loan. It would also seems like you are responsible enough to keep your money in the bank. This is why most people who does not have a stable source of income, like freelancers, is required to submit thei bank statement.
