Paperless loan

When you decide to take a loan, it is good to consider all the options you have. You can prepare tons of necessary documents and then go to a bank to apply for a loan there and start mostly long and unnerving process of verification. Which – we may add – can result in rejection of your application and you have to start the whole process all over again. Fortunately, bank loans are not the only ones available for you! When you have an emergency – have to pay some medical bills or fixing your car no longer helps, and you just need a new one – you can also apply for a paperless loan, meaning a loan without too many documents. These are easy and fast to get loans, so you have at least this issue off your back. Find out all about how to apply for a paperless loan and what are the pros and cons of taking it.

Paperless loan – the application process

Not only you don’t have to assemble tons of documents to start the application; you don’t even have to leave your house! You apply for the paperless loan online, by going to the provider’s site and filling out the form you will find there. The only document you do need to have is your ID. Other than that, you need only your bank account number and sometimes your telephone number as sometimes the verification process ends with an SMS. In the application form you will be asked to provide the following information:

All this data is important for the loan company as based on it the company can assess whether it is safe to lend you the money. What makes matters easier, you don’t have to present any proof of income or document from your boss – in most cases, just your statement will be enough.

But before you fil out the form and give all the information concerning your monthly budget, look closely at your finances. Apply for it only if you are sure you will be able to pay it back on time.

After your application is sent, you have to wait for the company’s decision. It usually doesn’t take too long, though. You may be asked to pay an insignificant amount to the provider’s bank account – that way the company will verify your bank account number. If everything is in order, all you need to do is wait for the money. And sometimes – for example when the loan company has the account in the same bank – you can receive your money even in less than an hour since the moment you’ve applied! That is why the paperless loan is so great for those who have some urgent and unpredicted expenses, like a broken fridge or a toothache. You don’t have to wait for the answer where to get the money from; it is well within your reach!

What are the costs?

Paperless loans are not the cheapest ones. Loan companies lend their money often to people who would not get the loan from a bank. That is why they want to secure their earnings by setting up a high-interest rate, charging for the insurance or commission. There can be some additional costs as well. If you take an instalment loan – when you have to pay it back gradually over a set period – and want to pay it back earlier than scheduled, you sometimes have to pay an additional fee. If you take a payday loan – which has to be repaid on a specific day – and fail to give the money back on time, it will surely cost you, and a lot.

That said, there are offers that allow you to take a payless loan… for free. When you take your very first loan from a provider, the company sometimes let you give them back the exact amount you’ve borrowed. They hope that after the satisfying experience of lending money from them you will decide to come back should the need arise. Free loans have their downside though, in most cases, you cannot borrow a substantial sum, just a small one. And the loan period is short, usually no longer than 30 days.

Who can take a paperless loan?

You can easily meet the requirements the loan companies set for their clients. You have to be over 21, and – in most cases – under 65. But you may find companies willing to lend money to 18 years old as well, and for people over 65 too, but you may have to search for a while.

But otherwise – whether you are a student, retiree, you don’t have a permanent job or even when you are unemployed – you can apply for a paperless loan without worry. Another obstacle may be a bad credit history, but still, there will be providers you can get a loan from.

What to look out for

Before taking a loan, you should remember to consider whether to take it at all. Even if you decide to take a cost-free loan, you may have trouble with paying it back as the loan period would be short.

What you also should think about is the amount you want to borrow. The less you take, the better, so take only what you really need to cover the necessary expenses.

Moreover, you always have to read the contract carefully and check and double check all the details — especially those concerning the costs of the loan you are taking. Look for the information about the representative APR – that is an indicator of the true costs of your loan.