Doorstep loans with no credit check boost comfort and speed of borrowing. You can borrow funds sitting on your couch, and that too without a hard credit check.
You can borrow funds without getting into a lengthy verification process of financial and personal details. The rule of affordability applies in the case of doorstep funding, too. Prove repayment ability and get approved.
No credit check offers convenience with certainty
If you have no bank account, or maybe you have one, but you want a personal conversation with the lender, choose no credit check. But there can be more to know about these loans without the need for a hard credit search.
A guide on urgent doorstep loans with no credit check is designed to provide you with a deeper insight into these loans.
Synonyms for doorstep loans |
Home collected loans, agent-collected loans, home credit loans, home visit loans, home service loans, etc. |
What is the meaning of “no credit check”?
No credit check denotes a soft check in which a lender does not perform a formal hard credit search. It is offered to those with a poor, limited or no credit history. Soft check does not include pulling out credit reports from credit reference agencies.
Lender assesses your current income and employment stability without delving into credit history. This allows the lender to approve you for the loan amount in a short time and even disburse funds in cash at your home.
How do doorstep loans work?
The loans at home work through a simple process, as lenders also aim to provide you with speedy funds. This is because home credit is for urgent and small expenses.
- Visit of a loan agent – A loan agent of a doorstep lender visits your home to explain about the home collection loans. You get to know the deals and the interest rates the lender offers.
- Affordability assessment – After knowing about the loan, if you decide to apply, the same agent assesses your affordability. For that, income proof, bank statement, and address proof are scrutinised.
- Get cash in hand if approved - Right after assessment, if your repayment ability is proven, sign a loan agreement. Then the loan agent gives you cash in hand at the same time.
- Home collection of repayments – After receiving funds, you can use them for your purposes. But on the decided repayment date, the lender’s representative comes to your place to collect the instalments.
How do home visit loan repayments work?
You can have multiple options to repay the borrowed funds. The following are the options, methods and features of repayments in home credit loans.
Common repayment options | Repayment methods | Flexible repayment features |
Weekly repayments | Collection at home | Payment rescheduling |
Fortnightly repayments | Online or phone payments | Early repayment allowed |
Monthly repayments | Direct debit | Partial payments |
Doorstep loans are expensive – Why?
Cash loans at home are expensive compared to other standard loans offered by mainstream lenders. Several reasons are responsible for that –
- Operational costs are high – Throughout the lending process, lenders have to organise a home visit. From fund disbursal to repayment collection, a lender’s agent has to visit your home. This makes the lending process expensive.
- High risk factor – The loans are offered to those with no or limited credit history and also those with no bank account. Hence, the lender has the least idea of how likely you are to default. In case you fail to repay, there is no security for the lender. This risk is compensated by a higher interest rate.
- Short term – At-home repayment loans are for small and urgent expenses, despite high-risk profile borrowers. Hence, the loan term is short, which in turn makes the repayments large.
Who can apply for home collection loans?
The following are the eligibility conditions to apply for home visit loans.
Applicants with –
- Minimum 18 years of age.
- Regular income that is provable.
- Regular employment that is provable.
- Valid address proof
- Valid identity proof
What are the risks of home collection loans?
Every loan product has its challenges. Before you apply, consider the risks below.
- Vague terms – If you find vague terms in a loan agreement and missing paperwork, do not go for the loan offer.
- Rude collectors – Some home collection or loan agents can be rude. They may act like an intruder on repayment dates.
- Refusal to provide receipts – Lenders or loan agents who refuse to provide loan and repayment receipts can be an issue.
- Improper explanation – Lenders who do not show interest in explaining the loan features and cost can prove chaotic later.
- Pressure to accept the loan offer – Some loan representatives may force you to accept the loan offer despite your showing disagreement.
What are the alternatives to doorstep loans?
Home service loans are convenient but expensive, too. Hence, if you feel like considering some alternatives, here are the options.
- Friends and family – If you think you can rely on any of your friends or family members for financial help, go for it.
- Credit unions - Unions provide small amounts as loans to community members. However, they usually prefer people with a savings history with the credit union.
- Non-profit lenders – Some community-based charities offer a small amount of funds with better terms for urgent expenses.
- Debt advice services – There are free debt advice service organisations that can help manage debt and avoid taking a new loan.
Things to ask for before you sign a doorstep loan agreement
Availing funds demands a responsible attitude. Hence, make sure you ask the following questions of the lender before giving consent to the loan agreement.
- What is the total repayment amount to be repaid, including all charges?
- What is the APR and the process to calculate the interest rate?
- Will I get a written loan agreement and repayment receipt?
- What is the complaint process, and how to use it?
- Are repayments flexible if I face any difficulty paying instalments?
Tips to follow if repaying the loan is getting difficult for you
Do you want to get approved on the first chance? If yes, follow the suggestions below for smooth approval.
- Apply to one lender – With no credit check, you may apply to many lenders. But that will only waste your time. Choose one lender, read its reviews and apply.
- Make a repayment budget – When a lender knows you have a repayment budget ready, you get easy approval. Loan provider gets the confidence of timely payments.
- Increase income sources – Try to gather more income sources, but they should be genuine. With more than one earning source, you can get a larger amount and can bargain on the interest rate.
Conclusion
As you can read above, doorstep funding is a popular way of borrowing funds conveniently. Although expensive due to high interest rates, these loans are in demand due to their convenience.
Before you decide to borrow, know about its features and challenges applicable to every borrower, especially if you want to apply for doorstep loans for bad credit with no credit check. An informed decision is always the best decision when it comes to availing funds.
Tags : Doorstep Loans
