After looking through a lot of loan options, you have realised the significance of having a bank account. The lender requires this to transfer the loan money. However, for some reason, your account is inactive, or you have not yet opened an account.
At this point, you might wonder whether this setback would backfire or not. One of the basic requirements would remain unfulfilled in your case. How can you make it to successful approval?
No need to exaggerate this fear further as doorstep loans can be a great way to sail through this problem. These loans do not enquire about any bank account. After approval, the loan money will be dropped at your doorstep.
It does not matter if you have poor credit scores or you are jobless. When you are getting quick cash loans to your door as an unemployed, you need to be mindful of the amount. It will have a direct impact on how rates and fees will work.
| Amount to be borrowed | £ 2000 to £ 5000 |
| Application fee | £ 0 (no need to pay such fees even if not approved for loans) |
| Standard establishment fee | £ 400 |
| Other fees (maybe) | £ 16 (added with the loan) |
| Annual interest | 47% |
| Repayment term | 6 – 12 months |
| Repaying options(flexible) | Weekly, monthly and fortnightly |
Securing loans when you do not have a bank account
When it comes to getting loans without a bank account, they have to be home credit loans. This means instead of your bank account, the money will reach you directly at your home. Thus, you can receive the loan money in your hands without visiting the bank branch.
Getting a loan is possible even though you cannot show a bank account. However, the procedure might seem confusing. Look at the steps to understand how these loans work.
· What to do to proceed with doorstep loans?
Here, you will get to see a continuation of a few steps. On the flip side, some steps would completely change because of the no bank account factor. Clued up thoroughly so that you can finish the steps perfectly.
1. Welcome a loan agent
Is it something new you are going to experience? Yes, this is because direct lending needs you to fill out an online form. Besides, traditional lending requires you to visit the bank branch.
In this case, you do not have to meet anyone outside. Someone, i.e. the loan agent, will pay a visit to your home. They will help you throughout the process.
You can complete the loan application carefully in their presence. Finally, you can submit it online. The best thing about having a loan agent by your side is that you can seek their guidance.
They can help you choose the right loan amount. Based on this, you can expect to get a suitable duration for repayment.
2. Wait for the processing
Once your application reaches the respective lender, the processing will start. This stage typically decides if you can get a £ 10000 loan with bad credit and no guarantor. No need to be surprised, as no hard credit verification will take place.
Here, a soft verification to ascertain your affordability is necessary. If you stand stronger in this aspect, there is no looking back. Besides, it will make the lender feel confident about your repaying potential.
As a result of it, you do not have to face any additional conditions like a guarantor. Thus, your affordability will be the greatest concern of the lender.
3. Receipt of funds
You must be wondering how the money will be handed over to you. Here, another agent will also come to you carrying the approved loan amount. You can receive funds from them immediately while staying at home.
For this reason, this lending process does not need any bank account. You should just be ready to obtain the loan money from the agent. On the due date of repayment, another agent will come to your place to collect the money.
In this manner, issues like lack of a bank account have been ruled out. It has only become possible because of the emergence of doorstep loans.
· Are there pros and cons of loans you can receive at your doorstep?
These loans are a true lifesaver for someone who is facing an emergency but does not have access to a bank account. Although they cannot pick a lot of loan offers, at least they will have some options to navigate the crisis.
However, you should not make any decisions blindly. The advantages and disadvantages of having these loans should be clear to you.
Benefits of getting loans at doorstep
These are the positive points that help you make sure whether these loans are your right choice.
- Ease of accessibility: Despite lacking a bank account, you can get loan support. Not only that, but the lender will also make sure to hand over the money to your doorstep.
- Speed of receiving: Just because you will receive a home credit loan, it does not mean you have to wait forever. The lender designs the process in such a manner that never delays the receipt of funds by you.
- Repayment is hassle-free: There is no reason for you to think that the lender would want you to pay back the entire loan amount with interest in one go. The loan payments would break down into small parts that are easy for you to pay back over months.
- Collateral is not necessary: The lender will never ask you to provide security as assets in return for this favour. First of all, home credit loans are not a favour. This is an additional facility arranged by the lender. For this reason, no collateral will be necessary.
Setbacks of doorstep loans
You must know the limitations that can accompany these loans.
- Late repayment: You should be extra careful about repayment, which is delayed and would result in penalties. Besides, it will leave an imprint on your credit scores.
The bottom line
Fetching loan assistance when you do not have a bank account is possible. Keep the essential pointers in mind while going ahead with the specific loans.
Jessica Rodz is the Senior Content Writer at Cashfacts. She has a long career in the field of content writing and editing. Jessica has the expertise in the UK lending marketplace where she has worked with 7 different lending organisations and acquired many responsibilities from preparing loan deals and writing blogs for their websites.
At Cashfacts, Jessica is managing a team of experienced loan experts and doing a major contribution in guiding the loan seekers via well-researched blogs. She has done graduation in Business (Finance) and now currently doing research papers on the UK financial sector.
