No Document Loans – Fast, Efficient Access to Cash
Overview
What are No Document Loans?
These are loans that do not require borrowers to provide documentation of their income to lenders.
How do these loans work?
These loans are often offered to consumers who cannot qualify for normal loan products because of fluctuating incomes. Applicants for no document loans are often required to provide a substantial down payment however.
The loans are generally easy to qualify for, but they usually come with a higher interest rate. Lenders generally look for a declaration confirming that the borrower can afford the proposed repayments. Individuals applying for these loans need to provide some form of proof of permanent employment and that they will be able to afford to make repayments for the foreseeable future.
In the South African context:
While most lenders require some form of documentation in South Africa, there are some specialist financial providers that offer no document loans. There are numerous micro lending institutions that offer fast, efficient access to cash without the hassle of having to furnish piles of paperwork.
The documents usually requested by other lenders such as a 3 month bank statement, proof of residence, a copy of your ID and payslips are not required during the application process with these particular lenders.
The main benefit offered by no document loans is the fact that it saves you time and money. Institutions offering no document loans often have fast turnaround rates.
Applicants don’t need to spend hours uploading or faxing documents.
How to find the best No Document Loans:
- Be clear about the loan type you need.
- Make sure that the company you choose is reputable and is registered with the necessary regulatory bodies.
- Make sure that you understand the fine print in the application.
- Shop around and compare various lenders.
