Cash Loan with No Bank Account
Overview
Having a bank account is common nowadays, but not everyone has one. Not having a bank account can be a liability, because you may not be able to have proper saving facilities and you will lose out on the benefits offered by having a transactional account.
In a developing country like South Africa, there is still a considerable chunk of the population that remains unbanked. This is slowly changing, as improved technology, as well as the penetration of the mobile market into the African continent has created a range of opportunities.
Can you get a cash loan with no bank account?
Although it may be challenging, the simple answer is yes, you can.
You will probably find that you can only gain access to higher interest loans, because you are regarded as a high risk individual. This is because the lender has no way of guaranteeing that you can repay the loan amount.
A bank account is usually required because it’s an easy way for lenders to verify that you have a regular income and so they can draft the repayment funds when they’re due. If you don’t have a bank account, lenders may require much more information from you in order to be able to verify your income.
In most cases, if you don’t have a bank account, chances are that you might not have good credit either. So lenders will be more likely to rely on your affordability to decide whether to grant you a cash loan with no bank account or not.
An alternative way of getting a cash loan with no bank account for many people is by approaching pawn shops or micro lenders who specialise in the provision of secured loans. These lenders will often require collateral in the form of a vehicle or another valuable asset or proof of income. These lenders may also allow you to choose a payment method that will be most convenient for you.
Ensure that you only get cash loans from micro lenders who are registered with the National Credit Regulator.
