One of the demands banks make when giving loans to individuals or organizations is that they have accounts within the bank. Most financial institution will not loan to applicants who do not have accounts with them. Here are other sources where you can borrow money without a bank account.
Friends and Family
This is one source of loans that will not demand you to have an account with them. Your family members can help you with a loan to support your business. This is because they know you and you cannot possibly run away from them. They will not bother with asking for a collateral. Family members will not ask you to pay back loans with interest.
Your friends can also lend you money in the name of your friendship. They may demand that you submit a collateral or ask for an interest on the loans. It all depends on the level of friendship.
Car Title Loans
Car title loans (like the name states) are loans where you table your car as a collateral. To apply for this loan, the applicants must own a car. This type of loans are for smaller amounts of money. They are best suited for offsetting a debt or small business owners. One major thing to note is that the interest on this loan is often high.
If loan applicants cannot properly manage their finances, they may end up in a debt crisis. It can even get worse, to the point of having to forfeit ownership of the car. Although this is very unlikely as the loan amounts are not as much as the price of the car.
Third Party Loan Platforms
The growth of the fin-tech industry has also led to the rise of third party loan platforms. These platforms are often savings platforms that allow members to take loans. Besides savings platforms, there are other platforms strictly for loans. Third party loan platforms do not require loan applicants to have bank accounts with them. They can receive the loans via any bank account of their choosing.
Third party loan platforms often operate via mobile or web apps. They may or may not demand for collateral. However, they will require some personal information that can enable them to have some level of control. Their loans also come with considerable interest.
Next Payday Loans
Next payday loans are another one of those short term fixes. This loan is often connected to your next salary. The platform offering you the loan do not require that you have an account with them. The necessary thing is that you connect them to your next salary. With the platform connected to your salary account, they can easily deduct the required amount from your next salary directly from your account. These platforms also add interest to the amount received for loans.
Loan Sharks
Loan sharks exist in real life, not just movies. Loan apps and other third party loan platforms developed from loan sharks. The latter are people who give individuals cash loans and demand payment within a specific period. Their rules are often very strict and their actions are questionable. Loan sharks do not ask applicants to have an account with them as loans are given in cash. The interest rates are usually high.
Most of these loans are usually short-term fixes. The money involved are also small amounts.
