According to the standard lending norms, the applicant must have a bank account. Moreover, its necessity comes into play when the lender has to transfer the approved sum of a loan. Now, to be able to receive the loan sum, one needs a bank account.
As per the forecasted report of Statista, in 2024, nearly 0.5% of the UK population should fall under the category of unbanked. This means that people still do not have access to a bank account. Although it sounds like they are deprived of the very basic amenities, this does not provide them immunity from financial problems.
What should they do to handle such common financial issues? If they are earning well and have saved cash in wallets for emergencies, everything will be under control. The actual problem might trigger when they have no reserved money to manage a crisis.
In these scenarios, one can opt for options featuring attributes of Provident Financial even when they are no longer operating in the market. These loans will serve the unbanked population by letting them fetch funds without a bank account.
How has everything been designed for these loans? To check and ensure that getting them will actually be blissful for you, stay here!
Unlocking loan opportunities for the unbanked
This is a major breakthrough for people who do not have a regular bank account. Some financial emergencies do not allow you the time to open an account and apply for loans. This could be an unwanted situation for you, but an escape plan must be worked out.
A loan with a doorstep delivery facility is what suits your requirements. The features of these loans will further convince you. Keep exploring!
· No disclosure of credit history
Lowering credit scores can happen because of due bills. Important payouts that you have missed out to cause your credit history to suffer. You will still have to deal with unpaid issues in addition to surplus charges.
There are doorstep loans with no credit checks available for you. Take advantage of this exposure that has been customised for borrowers who do not have a bank account. You can go ahead with the application process without revealing the condition of your credit scores.
· Loans are sent to your doorstep
This might seem like an unreal thing, but it is possible with these loans. Since money cannot straightaway walk up to you, someone should be delivering it to you. Thus, here, a loan agent will come to your doorstep to hand over the money.
This very process involves no bank account. You can clearly see how money is getting transferred in person. For this reason, you can consider having these loans when you do not have a bank account.
In a different scenario, if you have closed the account for some reason and have yet to open a new one, these loans can be your saviour. Here, you also hold no bank account where the lender can transfer the loan money. This setback has been rectified with home credit loans.
· Applying for loans is quite offbeat
Usually, you must have heard about sending out an online application for loans in the case of applying with a direct lender. Here, the process is almost the same, with a slight twist. You will be assisted by a loan agent who will help you to fill out the online form.
Thus, you can get suggestions about the loan amount you should choose. Besides, you can get useful tips related to borrowing, and your doubts will be cleared up before taking this major decision. You will send an online request but can complete it under expert supervision.
· Collateral is usually not a requirement
These loans are short-term funding, and getting a suitable amount for a trivial need is not difficult. Since loans are provided for a shorter duration, no assets will be necessary. The loan provider will majorly focus on your financial capacity, which resonates with repayment.
If your present financial state can assure the lender of timely repayment, you will confront no problem from the lender’s end. Assurance for repayment is oftentimes required in the form of collateral or a guarantor.
Nothing like this is going to happen in the case of these loans. Thus, you do not have to work hard to find someone who can become a guarantor. You can get these loans based on your financial capability.
Thus, it is straightforward that if you cannot make sure to repay loans on time, skip borrowing. Otherwise, a big debt trap will wait for you. In this situation, it would be better for you to switch to other borrowing options.
· Chances for credit improvement or building
It does not matter if you do not have a bank account. Maybe you had one, and the transactions have been irresponsibly managed and have led to poor credit scores. These loans can be a fresh opportunity for you to upgrade your scores even when you have no bank account.
Timely repayment of loans will be reflected in your credit reports. This will work towards improving your credit scores, which have nothing to do with your bank account. You can carry cash and pay bills on time to build or improve your credit scores.
Thus, if you want to get started with the creation of credit scores, these loans can arrange the right opportunity. You do not even have to wait to open a bank account as well. Get them and pay back the loans for the given flexible duration.
The bottom line
A feature like doorstep delivery of loans can raise the bar of borrower’s expectations. Now, they might want to explore options like bad credit car finance from a direct lender with this facility. When these loans might not be available with all online lenders, some specific providers will surely address this issue.
However, since poor credit scores are also involved, the borrower should reflect on a few vital aspects, like repayment ability. Otherwise, they might get into trouble in the name of utilising a distinct feature of a loan. Not to forget that loans are not free money and should not be handled irresponsibly.
Anna Johnson has more than 11 years of experience in direct lending industry of the UK. She is the Senior Content Editor at 24cashflow where she is leading a large team of loan experts. During her career, she has helped the loan aspirants to use the particular loans in the best way and improve their financial lives and status.
Anna Johnson is known for her in-depth research of the UK loan marketplace, as she has worked with many major lending firms in her career. During her educational phase, she has done a research on ‘Finance Fundamentals for Growing Business’.
