The personal loan allows you to finance certain events in your life. This consumer credit is not affected, which means that you do not have to provide explanations to your lender when you borrow. In this article, we will tell you whether or not it is possible to use the personal loan without proof.
What is a personal loan?
The personal loan is part of the family of consumer loans. This credit, like revolving credit, is said to be unallocated. It allows you to finance certain events in your life or to face certain unforeseen events without having to provide explanations on your loan to your lending organization.
With the latter, you can finance the following events:
- A need for cash;
- A marriage ;
- A world tour ;
- A travel ;
Personal loans are offered by all lending institutions, whether:
- Banks (physical or online);
- Or credit agencies.
With this type of credit, you can take out a loan ranging from:
- $ 200;
- to 75,000 $ maximum.
You should know that the personal loan is strictly governed by law and subject to constraints relating to the repayment period which are specific to it. The latter is between four months and six years, seven years in some cases.
Personal loan without proof: is it possible?
The personal loan belongs to the category of unrestricted credits. This means that, for this type of loan, you do not have to justify the reason for your loan from your lender.
However, you should know that proof of income is very often requested in order to determine:
- Your repayment capacity;
- Your financial situation.
Among these documents, you can notably find:
- Tax notices;
- A report for professionals;
- Salary slips;
- The CERFA package for the liberal professions;
- Social assistance statements.
It is essential to understand that your loan without proof only includes the use of the borrowed amount, which is free, and not the obtaining of said personal loan.
What are the personal loan rates?
The Annual Effective Annual Rate (APR) depends on the duration and the amount of the loan.
The shorter the repayment period, the lower the interest rate. By paying larger monthly payments, the borrower therefore chooses a less expensive credit.
Personal loan, unlike many loans, has a fixed APR. It is therefore impossible to revise them.
Here are the rates in effect in April 2020, for a credit of $ 15,000, over twelve months:
|Minimum APR||Average APR||Maximum APR|
You should know that, most of the time, the rates displayed do not include:
- Neither the administrative fees;
- Nor the possible insurance costs.
In order to get a quick response for your personal loan request, we recommend that you directly compare the best current rates via an online simulator.
In addition, your personal loan request can be made directly online, for a response in principle within twenty-four hours. Once the final agreement is validated, you can definitively validate your personal loan using the electronic signature offered by the various credit institutions.
Finally, in this case, you will need to be careful about your choice of online credit organization. Indeed, many fraudulent sites are flourishing on the Internet. You must request a reputable establishment, in order to avoid difficulties and benefit from legal insurance. To learn more about online credit, you can read our full article.
How to take out a personal loan?
For your personal loan request, you can directly make your arrangements with the desired banking establishment or lender, or even use the services of a broker.
The parameters to be taken into account are numerous and vary depending on the establishment. Indeed, each bank has a personal policy, depending on the target audience.
This is why your borrower profile makes the difference for any credit application.
Indeed, banks classify profiles according to:
- Their profession;
- Their level of resources;
- Their situation;
Thus, each organization establishes a level of risk and the repayment capacity of the borrower.
You will then have to present your need and establish a contract with your lending institution.
This contract must contain, among other things:
- The loan capital;
- The total cost of credit;
- The duration of the reimbursement;
- Or even the APR.
A personal loan is a contract between a lending institution and a borrower, where the former undertakes to lend a defined sum of money and the latter undertakes to repay it. For this operation, you have a right of withdrawal of fourteen calendar days.
You should know that the lender is free to grant you credit or not, depending on your repayment capacity. In addition, insurance may be required by the lender so that it has an insured reimbursement in the event of a payment incident.
To find out more about your request for personal credit, how to repay it or how to have it redeemed via credit repurchase, we invite you to consult our dedicated article .
Is personal loan without proof a good idea?
The personal loan without proof gives you more freedom as to the use of the borrowed capital. You will have no information to provide in return for this amount of money. You can use it for various events in your life, from your wedding to your travels.
In addition, the amount can be quickly released according to:
- The amount requested;
- The desired financial institution.
Finally, the personal loan allows you to get the money you need without making a big credit and commit to the long term.
One of the disadvantages of personal credit, which does not exist in the case of an affected credit, is that if your property or service is defective, you will still have to repay the loan.
How to calculate your personal loan?
To calculate your personal loan, you will first need to define the amount to borrow according to your need.
You will then have to choose the repayment period. The latter directly affects the amount repaid each month, as well as the total cost of the loan. If you choose a shorter repayment period, the credit will theoretically be cheaper because the interest due on the amount of your credit each month is calculated according to the capital remaining to be repaid.
Finally, you will need to compare the offers according to the rates and fees set up. The total cost of the loan includes the interest due on each monthly payment, as well as the amount of insurance. In addition, the administration fees are included in the APR proposed on the credit offer and they should not be forgotten.
To find the best rates for your personal loan, you can use this fast and free simulator or contact our team of Across Lender experts directly and benefit from personalized support.