The rapid provision of a smaller loan today is a major trend in the credit market, including among bank loans. Therefore, it is not surprising that a large part of bank and non-bank loans can already do without proof of income in the form of a written confirmation with the signature of the employer, because they just need an electronic version.
Sudden events can be resolved immediately
The electronic world has enabled a massive start-up of loans on account immediately, which are very useful in times when the home is “spilled” for which there is no money left. For example, a washing machine, freezer, fridge, or buying new clothes and shoes for children if it suddenly and unexpectedly cooled down in a time when other years have long been warm. But even the big pros are accompanied by big negatives, the same is true of loans without the need to prove receipts on paper.
A loan without proof of income can do without paper confirmation, not without income
The concept of a loan without proof of income can be misleading to many people because they can be interpreted as a loan for which there is no need to have any provable and regular income. However, it is an incomplete name, its marketing shortening to make it look more attractive.
In fact, it is a loan without documentary proof of income, ie without the need to provide proof of receipt and signature from the employer. Instead of a paper document from the employer, an electronic statement of account for one or more months (usually according to the size of the loan) or a copy of the pay slips for the required period is sent as an income statement.
Many applicants may, in the context of the European PSD2, allow the lender to consult their online banking. However, this is not obligatory in any case – it is always a decision of the applicant for a loan, whether to allow access to banking or rather send an electronic statement of account, for example in .pdf format.
Is it possible to ensure security with this type of loan?
Loans that are provided only online, without unnecessary paperwork, only electronic communication, are very convenient. Fortunately, they can also be said to be very safe, at least as far as the process of handling and providing money to the client’s account is concerned.
It is worse with the security of the debtor in terms of possible over-indebtedness. In fact, loans to the account are often requested on the basis of an impulse from advertising, from the shop where the applicants were just buying, or as a result of an immediate decision in situations where money is lacking. And this is the great risk of quick loans – people in this quick process sometimes do not remember all their current loans and all monthly payments.
A more comfortable life, but not at a high price
Online loans allow you to live more comfortably, which is an irrefutable fact. Thanks to online loans immediately on account you can deal with any unexpected event that will have an impact in the form of increased expenses, such as ordering service, buying a new device, booking a special holiday offer if the customer subscribes it immediately.
Online loans are able to reach the applicant’s account faster than new goods. But it is always necessary to read all the terms of the loan, especially the price (the final price payable by the consumer) and also the conditions in case of any delay in repayment. And add the other installments and expenses that the applicant has each month. Otherwise, a more comfortable life with online loans could come very expensive!