A borrower of a loan might have both good and bad credit history in his life. A good credit score enhances the chances of availing loan by a borrower at any time from any lenders. However, with the bad credit score, individuals face many issues for availing loans from any financial institutions or credit agencies. To cope with the bad credit score borrowers no credit check loans instant approval fulfills the requirement. There are many loan types available for borrowers or any consumers. The no credit check loans are one of the types available especially for bad credit score consumers. A bad credit history person may avail of a loan from any lender or finance firm if they disburse a loan under the no credit check loan category.
Various features of no credit loan
The interest rate levied by a lender under the no credit check loans is normally higher than many types of loans. So, an individual who applies to this category has to face serious consequences if he is not able to repay the amount on time. He should be prepared to repay the loan amount along with the interest without any delay. The collateral feature is completely absent for this type of loan sanctioning process. Hence, the individual has to apply for the loan based on his income proof and he must have a reliable income source for availing of this type of loan.
What do lenders need for disbursing loans then?
The lenders require only an income proof certificate from the borrower alone without checking the credit history of the person. The borrower has to produce basic details along with income proof such as a payslip for getting a loan amount. The lenders might change the rate of interest-based on the poor credit score rating. A very poor credit score may invite a very higher rate of interest from the lender. if everything is up to the expectations of the moneylender, the loan amount is approved instantaneously.
What is the exact process of loan sanctioning by the lender?
The borrower has to submit the loan application to the lender after filling it duly. Where the borrower gets the loan application online? the borrower can get the application from the lenders’ website in case he applies online. The uploaded application of the borrower is verified by the lender in depth. In case the details are satisfactory then the lender sanctions the loan amount immediately. The sanctioned amount is deposited into the bank of the consumer without the time gap. The borrower gets the loan amount on the same day of approval and hence it is called an instant loan or payday loan.
What are the various benefits of no credit check loans instant approval?
quick approval without collateral
paperwork task is very less
flexible payment procedure
no need to submit credit history details
Can get the higher loan amount
disadvantages of credit check loan
Rate of interest
short tenure for paying the loan amount by the borrower