A loan based on a statement is a method of financing with the least amount of formalities and the simplest loan procedures. To be able to apply for it, you only need to provide the bank with your monthly income. How does a loan based on a statement work? Who and where can use it? What are its types? How much can you borrow? Check!
What is a loan based on a statement?
A loan for a statement of earnings is also called a loan without certificates (about earnings). Thanks to it, you can borrow funds for any purpose without informing the lender. Its main advantage is that when applying for financing, you only have to provide the loan application and the source of your income, if any. The bank does not require documenting this information, but obviously it must agree with the facts.
Banks offer loans without certificates to enable clients to obtain financing immediately. Additional funds can be obtained even in several minutes, with minimum formalities and maximally simplified procedures.
You can count on the fastest course of the process if you apply for a loan at a bank in which you have a personal account that is affected by your salary, retirement or disability pension or other stable income.
Loans and advances on a statement – how do they work?
Loan for a statement and renewable limit
The loan based on the statement is primarily a classic cash loan. Similar application procedures may also accompany the revolving (credit) limit. In the offers of the banks themselves, the loan for a declaration practically always refers to a cash loan.
The revolving limit and cash loan per statement work the same as their counterparts, which require you to submit income documents. The first one provides constant access to a certain pool of additional funds, which the user begins to use automatically when the balance on his personal account falls below zero. Debt is also automatically repaid here – any impact on the account decreases its amount, and at the same time increases the amount of the available limit.
In a cash loan without certificates, the customer receives a specific transfer amount and then settles the liability as part of the monthly installments.
Loan on statement
Income certificates do not need to be presented to loan companies either. Virtually all of them offer a loan on a statement, in the form of a traditional installment loan or payday loan. You do not need to attach any financial documents to the funding application.
Loan without certificates – how much and for how long can you borrow?
A loan based on a statement is a quick and convenient method of financing, but it has at least one significant limitation: it works only in the context of financing relatively small expenses.
Banks give up the requirement to document income, but in return are willing to borrow a relatively modest amount – usually from about USD 500 – 1000 to a maximum of several thousand dollars. Therefore, even if the slogan appears in the ad: a loan for a statement up to USD 50,000 or USD 100,000 , in practice, in order to be able to borrow such a high amount, you still need to provide documents from the employer. The above amounts and principles apply to both the cash loan and the limit without certificates.
A cash loan based on a statement , compared to a loan under a full credit procedure, is usually also associated with shorter repayment terms. You usually have no more than a few years to settle this obligation. Offers are also available that provide for a 10-year loan period.
The renewable limit agreement is usually concluded for a year. After its completion, you can renew it and continue using the product (i.e. also continue to pay off previously generated debt).
In the case of loans without certificates, the repayment period ranges from 30 days (payday loans) to a maximum of 3-4 years (installment loans) , while the amount of financing reaches no more than a few (payday loans) or several thousand dollars (installment loans). Individual companies, under installment loans, will borrow up to USD 40,000 or more, but will require you to present financial documents.
Who and where can take a loan for a statement?
Anyone who, in the bank’s opinion, has creditworthiness and has a positive (ultimately neutral) repayment history can take out a loan for the statement. Although you do not have to attach any contracts or income declarations to your application, the lender is still analyzing your financial situation. In addition, it will also check what data the Credit Information Bureau has collected about you. Banks accept virtually any regular and legal source of income – including income from work contracts or flat rentals.
Similar rules apply to non-bank statement loans. In addition, some lenders use an even more liberal approach and do not check clients in BIK or in debtors’ registers.
Earnings credit is a standard service that is available in virtually every bank. Importantly, however, individual institutions individually determine potential amounts and periods of financing, as well as the conditions that must be met to take advantage of the loan. It happens that the bank addresses the offer only to people who have a personal account with a constant monthly inflow. The banking institution must be able to determine from whom and for what reason they are received. The point here is that transfers from the employer, principals or apartment owners should be clearly titled.
How do I apply for a loan?
No matter what “product on the statement” you are talking about, you can apply for it via the Internet. The details of the credit process vary from institution to institution, but usually follow a specific pattern. If you have a bank account where you want to take out a loan for a statement, you will complete all formalities from the transaction service level.
Through online access to your bank account , in the main panel you will find the tab with the online application. In the form, you must indicate the amount and for how long you want to borrow. In the application you must also provide some basic information about your finances: the amount and source of earnings, the types and amount of liabilities held, or the number of dependents. After a few minutes, the bank will send a loan agreement, which you will be able to accept using the authorization tool, i.e. for example an SMS code.
When applying for a loan at a bank where you do not have a personal account, you submit the application via its website . In addition to financial information, you must provide your personal and contact details. The form will also contain space for the account number to which the funds from the loan are to be transferred. The difference is also that the bank examines the information you provide more closely. This may slightly extend the duration of the credit process.
Loan for a statement – pros and cons
A loan for a statement is a worthy option for financing small expenses. No need to submit any documents, as well as the ability to go through all the procedures online, allow you to get money in a convenient way. Compared to traditional loans amounting to larger amounts, a loan based on a statement means a slightly higher risk for the bank and at the same time lower earnings. Therefore, these inconveniences are often compensated by a higher interest rate and / or a higher commission for providing financing.