Unlike the so-called allocated credits, the personal loan without proof is not taken out for a specific project. In other words, the borrower is not required to justify the use of the funds he wishes to have.
Beware of credit offers that do not require proof of your identity, income, or place of residence. Indeed, the law requires lending institutions to check the creditworthiness of the borrower. Reliable financial institutions will therefore systematically require “supporting documents”. Very practical, it allows households to immediately have a sum of money that can be used freely for a few months or a few years. Zoom on this type of credit without proof and therefore very flexible.
The personal loan without proof is a limited-term contract
The bank or credit institution lends to a natural person (as defined by French law) who contracts a certain amount that can be used freely, without allocation/justification to a specific expenditure. Repayment is made through monthly installments or at another frequency.
Quick personal loan in a few words
Unlike the assigned credit that is used to finance a well-defined project, the rapid personal loan without proof allows the subscriber to use the money at his will. He does not have to be accountable to the bank on the reasons for the loan when formulating the loans with no credit check request. Many individuals use it, whether it is to finance a family trip, studies, and the purchase of a new car or furniture for the home.
Who is this type of personal loan for?
Quick personal loans without proof of the use of funds concern applicants who want, for example, to obtain a mini loan. Credit can be used to finance current expenses, as well as the realization of a new activity. Applicants are not necessarily people with limited income. Particularly with regard to personal loans between individuals, project leaders can even be individuals who are unemployed or registered with the agency.
But that’s not all. Sometimes auto-entrepreneurs and students do not have to prove their income to be granted a personal loan quickly. In this case, however, the interest rate can quickly climb, which requires a comparison of offers beforehand in order to find the best formula.
What are the characteristics of this type of credit without proof?
It is usually granted for a few months or a few years, but rarely more than 5 to 7 years. Its duration is determined according to the number of monthly payments that the borrower wishes to pay.
The loan rate is fixed and guaranteed for the duration of the contract.
As its name suggests, the borrowing individual or household is not required to justify the use he makes of the money made available to him. He can use it to deal with unforeseen events or to improve his daily life, for example:
- Buy equipment goods or a car / motorcycle,
- Carry out renovation or development work in the house,
- Treat yourself to a trip, finance a family event (wedding, etc.), children’s studies,
- Carry out a project of any kind,
- Meet a need for cash, for example to pay taxes, unforeseen medical bills, or other expenses.
What are the acceptance conditions?
The quality of the financial file is essential because the decision of the financial organization to grant you or not the funds rests on your repayment capacities and on your credibility as for the payment of your monthly payments. You must therefore build a solid case that meets the following criteria: You have a stable job, whether in relation to your function (civil servants, thanks to job security, have a privileged profile) or your seniority;
You receive regular remuneration; if you are not an employee, show the creditor that you have other regular resources; you have good financial behavior (no big expenses, bank overdrafts, etc.); to certify this, your bank statements for the last three months will be peeled. You do not accumulate debt. If you already have other loans outstanding, your ability to repay one more diminishes, too, unless your resources are high enough to allow you to honor your debts and live decently at the same time, you expose yourself to rejection.
You have good savings capacity
Because creditors are less enthusiastic about lending money to people who are prohibited from banking. If your last account statements present pitfalls likely to have a negative influence on the creditor’s decision (large superfluous expense, overdraft, it is recommended to wait for a little in order to be able to present healthy finances.
In addition, there is no obligation to purchase or commit; the credit contract and the contract for the purchase of a good or service are not linked as in the case of affected credits, with a suspensive clause where the non-fulfillment of one automatically cancels the other. The formalities are reduced. The creditor does not request a direct debit of salary or the opening of an account in his establishment; some do not even require proof of income and/or resources. For an emergency or to be able to quickly materialize a project, personal credit without proof is therefore ideal.
Then, this type of fast credit is very flexible; its holder himself determines in advance the terms of reimbursement: the amount, the frequency, the date of the debit. He can also request a suspension of payments (within the limit of three months), or when he no longer uses the credit, make a partial or full repayment of the outstanding capital without penalty. This type of loan is much more easily negotiable than an affected personal loan.
Finally, several regulatory provisions have been provided for the protection of borrowers. On the one hand, the lender must present upstream a prior credit offer, the conditions of which are valid for thirty days; on the other hand, the subscriber can exercise his right of withdrawal during the legal period set.