The answer to the question is simple but the question is not precise enough. Indeed, if we consider the loan without documentary proof like the fact of making a request for credit without documentary evidence such as the identity document or a proof of income, then it is almost impossible. On the contrary, if the implication of the question is the non justification of the loaned money, then yes it exists.
Loan without proof of use, explanations
The borrower is not required to justify how he will use the amount of money that will be loaned to him. This is why we sometimes talk about a loan without proof or credit without a document to provide.
However, if it is the acquisition of real estate, the purchase of a vehicle or the performance of works, the borrower has every interest to declare the purpose of the loan. This will allow him to obtain special conditions for the credit: amount borrowed, repayment term and even a rate that could prove more advantageous. The more numerous the supporting documents, the more the lender is reassured about his capacity to repay. The borrower then has easier access to the lowest rates (see cheap credit without proof).
Here is an illustrative example dated 05/03/2018 for a Astro credit of $ 10,000 over 60 months
Personal loan without proof of Astro
- maximum amount = $ 75,000
- maximum repayment period = 60 months
- Fixed APR from 4.29%
Car loan with Astro proof
- maximum amount = $ 75,000
- maximum repayment period = 84 months
- Fixed APR from 3.19%
Justifying the purpose of the loan therefore allows in this case to benefit from a much more attractive rate.
Loan without supporting documents
Any opening of credit requires supporting documents. For example, it is not possible to obtain a new credit without proof of income (salary slip, account statement or tax notice).
The main reason is that the lender must ascertain the profile of the borrower before granting the loan and transferring the funds. This allows it to detect possible fraud (identity theft, inconsistent RIB, etc.) and possible inconsistencies between the data declared in the credit form and those entered on the supporting documents. The latter are also requested only when the credit organization has given a favorable opinion on the credit request.
What supporting documents are requested?
Depending on the product purchased, the requested supporting documents may differ slightly. In addition, the elements requested are specific to each credit institution. The supporting documents requested whatever the credit and the lending organization are:
- photocopy of an identity document: identity card or passport
- photocopy of proof of address less than three months old
- latest pay slip
- photocopy of tax assessment
If the applicant has a co-borrower, the latter must also provide the same information.
Mini-credit: limited supporting documents
The legislation is somewhat different for small loans of less than $ 200. Indeed, the withdrawal period of 7 days minimum before receiving the money is not news for this type of loan. Money can therefore be transferred very quickly to the customer’s account in 24 hours minimum. The subscription process is therefore more simplified, but it is also not a loan without proof. It is necessary to provide an identity document, proof of address but also salary statements. Note that the reimbursement must be prompt. The money will have to be repaid over a maximum of 30 days. This type of credit is relatively unknown and this is also the case for sector specialists: Bankate and Viloan.
Loan without proof for a revolving credit
Opening the revolving credit without proof requires the supporting documents described above, with the exception of the tax notice (not systematic). However, the peculiarity of revolving credit is that once the product is opened, it is possible to use it at any time within the limit of the available envelope. Each use is characterized by a transfer to the customer’s account. It is then possible to receive money without taking out a new loan without proof.
Loan without proof of income in store
For credits offered in stores of type 3 times without cost or in several times with cost, it is possible to have fewer supporting documents to provide. Indeed, the brand offers credit in order to facilitate sales. As potential customers do not have all the necessary documents with them, it is possible that the supporting documents to be provided may be reduced from the last salary slip and the tax notice. In return the customer will have to pay immediately the first monthly payment in store with his bank card.
Additional supporting documents for assigned loans
For car credit, you will need to provide the purchase order for the car purchased or a photocopy of the registration card for a used car. For the loan works, it will be necessary to have the estimate of works to be carried out and all materials referring to it.
Home loan: far from being a loan without proof
It is the credit that requires the most supporting documents. Rightly so given the amount of loan granted. In addition to the standard parts listed above, you will need to add your account statements and also the sales agreement.
Loan without documentary evidence: possible when the lending organization knows the client
It is the one and only case that allows the borrower to obtain a loan without proof. Suffice to say that to lend without asking for additional documents, the lender must be confident. This is the case, if he knows the client well, has recent information about him and that the latter is judged as a good client. Only the client’s bank is able to know their client enough to lend them money without proof.
Loan without proof: advantages and disadvantages
The advantages of the loan without proof
The two main advantages are:
- Quick credit to obtain because fewer supporting documents to provide
- more freedom in the use of money
The disadvantages of the loan without proof
They are of two types:
- APR offered on the loan without higher supporting documents in general.
- credit organizations are generally less willing to accept this type of application. The borrower is thus more likely to have his credit request refused.
In conclusion, a loan without proof does not mean that no supporting document will have to be provided. It generally translates the fact that no justification is to be provided when using the money.