Can I Really Get a Loan Without Bank Account?
A short answer is yes, you can. Today, many Filipino lenders do not require active bank accounts since they cater to the needs of unbanked customers. Different companies from small street lenders to large financing corporations deliver loans without bank account. Any citizen of a certain age can contact a lender, apply for a loan, and get approved if the requirements are met.
However, there are a few pitfalls. Quick cash loans with no bank account are less common when compared to traditional options. Thus, you can only get short-term offers with small sums. Moreover, lending companies usually check a borrower’s credit profile. Thus, applicants without bank statements are often required to submit more documents related to their income. Finally, such loans come either with collateral or with high interest rates.
So, let’s summarize. Definitely, you can get a loan without bank account Philippines. But you should be ready for the following limitations:
- High fees and interest rates. They can go up to 700% APR or even more. Remember to deal with legit lenders only because loan sharks feature even higher rates.
- Short repayment terms. They vary from a few days up to a few months but almost always don’t exceed one year. Still, you can ask for custom offers.
- Small amounts. The average maximum amount is set around P25,000 while the minimum sum is P1,000. If you need more money, opt for banks.
- Strict eligibility criteria. Since lenders want to get credit-worthiness proofs, they ask for different documents, e.g. payslips, ITR forms, utility bills, etc.
- Collateral. This requirement is often listed by large companies. Cars, houses, luxury items can be used as collateral.
If you’re comfortable with these options, feel free to apply for cash loans with no bank account needed. Otherwise, consider opening one. It’s really simple today – a lot of banks support deposits that start from P100. Plus, they often don’t charge any maintenance service fees. You can find the ultimate list of banks that deliver loans on our site. Of course, you can also find no bank account loans in our lists, too.
Why Do Lenders Require a Bank Account?
There are a few reasons why lending companies prefer customers with active accounts. Actually, even if a lender doesn’t feature this requirement, it will still check your banking history. This is a primary evaluation tool that financing companies use. Thus, even if you send a loan application without bank account, you will be checked.
Talking about the exact reasons why lenders require you to have an account, there are several prominent points. Check them carefully so you can make an informed decision.
- Analysis of your financial situation. As a rule, lenders check bank accounts to find out how much money a borrower has and whether he/she is able to repay the debt. Often, companies accept separate bank statements as an alternative to a bank account. But large financing groups will still require the info about your account apart from other proofs.
- Acknowledging your money management skills. Lenders are more likely to approve customers with bank accounts even if these customers don’t have a sufficient amount of funds. The thing https://installmentloansgroup.com/payday-loans-sc/ is if you have an account, you’re believed to manage funds properly. Also, you have access to deposits and credits that can boost your rating.
- Quicker delivery of loans. While customers can apply for a loan online without a bank account, they will not be able to get funds instantly. That’s why lending firms prefer bank transfers – they’re simple and quick. Moreover, the majority of lending companies use ACH – a digital system that handles payments between bank accounts only.