A personal loan without proof/documentation is a credit formula for rapid consumption to finance any personal project at a small and medium scale. While applying for a loan without proof, the credit organization does not require any proof or documentation on the part of the borrower for the allocation of the offered loan. It is a credit without quotation or invoice that can finance any kind of cash needs.
Principle of loan without proof/documentation
What is loan without proof? This type of loan differs from other offers of consumer loan by the absence of an assignment. An assigned loan like an auto loan or work loan provides for a specific destination and that must be respected. A personal loan without proof is a credit offer of an amount capped at $75,000, which allows the borrower to finance a personal project or the purchase of consumer goods, without having to provide proof of use to the financial institution. Thus, the borrower can use this unallocated loan to finance a trip, wedding, purchase of household equipment, etc. The consumer loan without proof is intended to alleviate any need for money.
However, a personal loan without proof must not be confused with acquiring loan without proof of income. Any loan application without proof of use implies the constitution of a number of supporting documents including proof of resources. The loan without proof of salary is a specific formula of loan without documentation making it even more flexible but which is addressed to a more restricted clientele.
Benefits of a personal loan without proof
Personal credit has many advantages, the main ones being simplicity, speed, and flexibility. Simple, this loan for consumption involves less of a gait. Unlike the allocated loan, there is no need to provide proof of the planned project. The borrower does not have to provide a quote or an invoice. The credit institution has no control, which makes it possible to finance a project in any discretion. This rapid consumption loan represents the largest financing solution. One can finance the purchase of a new vehicle or can finance a trip. This flexibility is the major asset of a personal loan without proof.
Loan without proof is not wild. Any credit institution offering loan without proof is subject to the provisions of the Consumer Code which provide strict rules as to the interest rate of this type of loan and the duration of the contract. Many provisions are adopted to strengthen consumer protection against possible abuses by lenders.
The terms of the personal loan without proof
Who can avail a loan without proof?
Any request for a loan without proof implies a certain number of pieces intended to evaluate the profile of the borrower. The financial institution will mainly check the creditworthiness of the borrower through its income, repayment capacity and its debt ratio. As a general rule, the indebtedness must remain at a reasonable level. The law also specifies a maximum debt of 33% in order to avoid any risk of over-indebtedness. The debt ratio takes into account all the expenses borne by the borrower, i.e the rent, the schooling of the children, the loans in progress. To subscribe a credit without proof, all these charges must not exceed one-third of the borrower’s income. Obtaining a loan without proof, therefore, requires a healthy and stable financial situation.
The obligations on behalf of the lender
It is also up to the credit institution to reserve the granting of the personal loan to those who can afford it. Every lender is obliged to consult the central bank’s list to verify that the claimant is not subject to a banking prohibition or an over-indebtedness measure. But the lender responds above all to an information obligation. It has the duty to provide all necessary and useful information around the credit offer. Any loan for consumption must necessarily display the APR or annual percentage rate that includes the nominal rate but also all costs incurred by the credit, fees, insurance, etc. The borrower will be able to accurately determine the overall cost of his future credit and compare offers in the best conditions.
The request for a personal loan without proof
It is now possible to complete all credit application procedures online to save time. But before discussing the steps to follow, let’s return to the parts to provide.
Documents to provide
Credit without proof implies the collection of a number of documents to provide. Any request for a consumer loan is accompanied by:
- A copy of his identity document, this may be either the identity card or the first page of the passport;
- The last three statements of wages to justify the stability of incomes, for the non-employees, they will be able to provide the last notice of taxation;
- The bank identity statement to check the status of the borrower’s finances but also to make the credit transfer soon;
- Proof of address, an invoice in the name of the borrower that can be used.
The steps for a personal loan without proof
Subscription of loan without proof implies the respect of some steps of which:
- Searching for the offer, in order to facilitate the search, we advise you to use a credit comparison tool that lists and sorts all the fast personal loan offers available so that you can find the best offer;
- The editing of the file, this step is crucial to speed up the procedure, a complete and well-ordered file will prove your seriousness and your involvement;
- In the study of the file, the credit agency will carry out an investigation as to your solvency to determine if you are eligible for the offer. The processing time varies according to the credit institution;
- The granting of the credit, after all the checks, you will receive a response from the bank. If you meet all the conditions, you will sign the credit agreement and your account will be credited in the next days.
- Remember that from the signing of the contract, you have a withdrawal period of 14 days, during which time you have the opportunity to cancel the loan for any reason.
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