Personal loans can help us to navigate our way through difficult and treacherous financial situations, and help us to regain our financial liberty.
However, loans inevitably incur debt, and they must eventually be paid back, with interest.
This means that it is important for both a lender and a borrower to be sure that the money will be paid back eventually.
As part of this, most official lenders will require a number of official documents that they can look through in order to verify that an individual can be trusted to pay back any money they owe.
These often include bank statements and credit checks, which can give lenders a sense of how an individual manages their finances.
But not all of us have such easy access to these documents, so it is often wondered whether it is actually possible to apply for a personal loan without needing any personal documents at all.
Is it possible? How do you do it? Let’s find some answers to these burning questions! Join us by reading down below!
Can You Get A Personal Loan Without Documents?
Yes, it is possible to get a personal loan without providing any documents. However, it is always best recommended to apply for a loan with personal documents.
The reason for this is that those documents can help to give lenders a sense of who you are financially, and how you manage your own money, this will give them a sense of whether you can be trusted to pay back your debts.
This will also speed up the application process significantly.
Whether or not a lender will accept a loan application without documents will depend on the lender you are applying to borrow from.
Some lenders may be more willing to accept an application without documents, while others may be incredibly resistant.
As well as there being a few lenders that will accept loan applications without documents, it is also possible to apply for paperless loans!
Paperless loans are a type of loan that is processed entirely online, via digital platforms.
These are offered by a few major banks, via their online apps.
However, most paperless loans are only for very small amounts of money, and in order to access greater amounts of money, you will need to apply as normal with another lending company.
How Do You Get A Personal Loan Without Documents?
In order to get access to a personal loan without any documents, you will need to make sure that you have a good relationship with your bank.
If you have been with the same bank for many years, they will have a great record of you, and they will be able to vouch for your ability to manage your finances.
Being with the same bank also allows them to have a greater sense of your creditworthiness, which in turn helps lenders to understand whether you can be trusted with a specific loan.
As part of this, you will also need to make sure that your credit score is healthy.
A healthier credit score assures lenders that you can be trusted to repay what you owe because it shows that you are able to manage your finances.
You can do this by making sure that you pay all of your debts within good time, and repaying any credit card bills within good time.
You should also make sure that you have as few ongoing debts as possible that are yet to be repaid.
Still having debts to repay reduces confidence in your ability to repay the debts from any loan you might apply for, so it is best to have none at all.
You can also up your chances of landing a loan without documents by making sure that you have a strong relationship with the lender.
You will want to try to build a rapport with a lender, so it generally helps if you are applying to borrow from a lender that you have previously borrowed from, as they will be sure that you can be trusted, and thus they will be more willing to take greater risks.
What Are The Benefits Of A Loan Without Documents?
So why might a person go for a personal loan without providing any documents? Let’s look at some reasons!
Of course, applying for a personal loan without documents, such as a paperless loan, can quite significantly cut down on the application process.
Of course, this depends on your bank account being in good standing, or you having a good relationship with your lender.
Paperless loans like those you can access via numerous banking apps are also renowned for being easy to apply for.
This, of course, makes some paperless loans a great option for anyone that needs quick access to a loan, such as for an emergency situation in which they may need quick access to finances.
The verification process is handled entirely online, and entirely digitally, which makes it very quick and efficient.
The application process also requires next to no interaction with any people in person, as most paperless loans can be done entirely through mobile apps or websites.
This makes it a great quick option, or a great option for anyone dealing with extreme social anxiety.
Unlike standard loans, paperless loans are unsecured, which means that it is very low risk for the borrower, although of a slightly higher risk for the lender.
This further makes it a great option for anyone looking for a quick loan in an emergency, because there is a very low risk to one’s credit score should there be any trouble paying the loan back.
Ease Of Use
Because paperless loans are often for smaller amounts of money and intended for personal use, an individual will not have to worry about declaring exactly what they plan to use the loan money on.
More specified and controlled loans, such as home loans, or loans used to pay for education will need to only be used for those specific purposes.
To Wrap Up
Getting a personal loan without any documents is more than possible, but in some cases, it may be a little more difficult.
Some lenders may be totally unwilling to accept a loan application without documentation, and any lenders that do accept them may need to take some extra time to verify your application or may require you to meet a few different requirements first.
Generally, it is always best recommended to pursue any loan application with documentation, but paperless loan applications are a great backup option for anyone that is encountering any financial troubles!
Frequently Asked Questions
Do All Personal Loans Verify Income?
Though most lenders will seek to verify your income before accepting an application, there may be a few that do not.
Can I Borrow Money without Proof of Income?
Most lenders would prefer proof of income to ensure that you can be trusted to repay a debt from a loan, but there are a few lenders that will accept applications without proof of income.
Do Personal Loans Call Your Employer?
Some lenders may choose to call your employer in order to verify your employment, but this is not required.