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Getting loans without bank statements

How To Get Loans Without Bank Statements

Updated on October 23, 2022


You need a personal or business loan to get you out of a bind. If you have a bank statement and get your approval, then the money will be sent to your account. However, if you don't have a bank account, this issue might become a tad bit more troublesome.

There are a ton of reasons for not having a bank account. You may be going through financial difficulties, you may have had your account closed, or you haven’t had the chance to open an account yet. Regardless of the reason, many banks are reluctant to give you a personal loan if you cannot provide them with a bank statement.

Still, while opening an account may seem the only logical way to go around it, you don’t always have to commit to a bank just to take out a loan.

The Connection between Bank Statements and Loans

Let’s say that you want to take out a loan from a bank, but you are turned down because you do not have a bank account. Obviously, you’re baffled; why do you need a bank statement? Can’t they just give you the money right away?

Well, bank accounts are not necessarily used just for transferring the money; they are practically a mirror of your finances. Nowadays, everyone gets their pay into their bank account. And everyone uses their bank accounts to pay their bills.

So, at this point, you might understand why banks may care about this particular aspect. By looking at your bank statement, they will be able to see proof of your income, as well as your reliability when it comes to paying your monthly debts.

Conventional banks have some strict rules – and they cannot take any chances. They need more than your verbal statement of “don’t worry, I can pay.” They need actual proof, and that evidence is visible on your bank statement – which is a summary of your account activity.

Where Can I Find Loans without Bank Statements?

The methods for getting a cash loan with no bank account may not be the ones you would usually go for – but they are beneficial for these particular circumstances. Here’s what you could go for if you are looking to escape the bank statement:

  1. Payday Loans
    If you don't have a bank account, the chances are that you might not need one only because you do not have that much money. You receive your payment every month in cash or a check, and there was never actually any need for you to open up a bank account. You live paycheck to paycheck – and sometimes, this might not even be enough.

    Payday loans offer you the opportunity of taking out a loan without worrying about a bank statement. They’ll need some proof that you have a particular income every month (for example, a pay slip), and they usually do not require any collateral or credit checks.

    Many payday lenders will still ask for a bank statement, so you may want to shop around first. They do this only because it’s the easiest way to check for income, as well as the fastest way to draft the payments. If the lender doesn’t require a bank statement, they might ask for other info to fill in the gaps.
  2. Peer-to-Peer Loans
    This type of loan allows two individuals to borrow and lend money, without having to resort to a financial institution to act as middlemen – which means you won’t need a bank account.

    Still, this will also depend on the parties concerned. For example, if the “peers” are acquaintances, family, friends, or people that you have been interacting with for a while, then they will probably know how much you make a month – and see that you will be able to handle your payments.

    On the other hand, if the “peer” doesn’t know how much you make or how responsible you are with your payments, they might ask for a bank statement or at least a pay slip to prove that you have the means of paying. After everything has been settled, both parties will sign a contract that will make them hold onto the end of their bargain.

    Depending on how the transaction is made, some of these peer-to-peer loans may need a bank account – but only if the lender is not there to personally give you the money. Look for peers that can meet up with you to sign off on the loan, and you won’t have to open up a bank account.
  3. Car Loans
    If you are looking to take out a loan for a car, then you may be surprised to hear that while bank statements are appreciated here, they are most certainly not a requirement.

    Dealers offering car loans don’t care what your proof of income looks like as long as it’s there, in front of them. Plus, when it comes to collateral, you could say that the car itself counts as one. After all, if you are unable to pay, then the lender will simply take possession of the car and auction it to recover the money.

    However, keep in mind that if you do not have a bank account, you will be seen as a “risk” borrower. If your credit is not great, then your browsing for loans for bad credit with no bank account might prove a bit troublesome.

    It’s not necessarily because you will not receive the loan. You will get it. However, you may get it at a higher interest rate – which means you will be paying a lot in extra in the long run. The advantage is that the more you make timely payments, the faster you build your credit.

How to Apply For a No Bank Statement Loan

If your only option is to get loans without bank statements, then you might be intimidated by the idea. Still, depending on where you go, the process shouldn’t be any more difficult than this:

  1. Fill out the application form. Based on this, you will be contacted by the business and offered a quote.
  2. Put together all your documents. Depending on your loan type, you'll need a copy of your ID, proof of income, and insurance for the property.
  3. Wait for approval from the lender. Bear in mind that it might take a while to have your loan approved, depending on who you are dealing with.

Since you are not working with a bank, there might not be much hassle for you. Lenders will process your documents directly, and once they are sure that you can pay, they will give you the money.

These discussions may be completed online, but if you do not have the means of seeing your lender face to face, then you may want to consider opening up an account. Sure, it will be empty, but you’ll only be using it as a method for receiving the money.

How to Be Careful

It’s no secret that there are many scammers out there who only want to get away with your money. Plus, when you have bad credit and start looking for unconventional methods to get a loan, you prove to people that you are desperate – which will make you a sure target for fraud.

There are many respected and trustworthy dealers out there that could be real life savers – but only as long as you make the right, documented choice. For example, when it comes to payday loans, many people avoid legitimate businesses simply because they have very high rates.

It’s best that you do your research on the lender before opting for a loan. If it’s a payday lender, look for reviews from people that used their services: are they any good? Did they follow their end of the bargain? Do the comments seem legit, or does it look like some robot wrote them? To avoid being scammed, you should get your info from independent parties.

Final Thoughts
There’s more to bank accounts than using them as “safe wallets.” Your account tells people exactly who you are – and the wealth is only a small part of it. It shows how trustworthy you are, or how susceptible you are to debt.

Indeed, loans without bank statements have an increased risk level and come with higher interest rates. However, it’s not impossible to get them, even if you have a bad credit score – or proof of no credit at all.

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Noel Ballon

Noel Ballon is a skilled personal finance writer passionate about helping people to succeed financially.

As a guest writer for CASH 1, Noel has shared his knowledge on a variety of financial issues, including budgeting, saving, investing, and retirement planning

Noel has a background in economics and finance with over five years of experience writing in the financial sector.

He works to simplify complicated financial ideas so that people from every area of society may understand them.

When Noel isn't writing, he likes keeping current on the latest financial sector changes and looking for fresh approaches to assisting people in choosing wise financial decisions.