Some financial institutions do not provide payday loan without being justified by the borrower’s use while other lenders freely lend without evidence. The borrowers can use the amount borrowed as they please without having to justify their use. You have to be careful because this type of loan can quickly become a source of over-indebtedness if it is not used wisely.
What is a payday loan without proof?
Debtors looking for resources to finance their personal projects can apply for a payday loan without supporting documents online. Unlike the assigned loan, it does not require any proof of purchase or use. The debtors are thus free to finance their holidays, their development or home decoration, their household equipment or even their unforeseen events.
Before granting a payday loan without proof of employment, the lender always ensures that:
- The borrower is solvent, that is to say able to repay the credit to avoid bankruptcy and over-indebtedness of the beneficiary,
- The debtor provides proof of resources, including the latest pay stubs, bank statements, tax notices…
Only after the debtor can use the received funds as he sees fit. Even if a payday loan without proof seems simplistic like that compared to other types of consumer loans, well, the donors give up only after having the certainty to be refunded. It also imposes very high interest rates or guarantees.
Source of over-indebtedness, in case…
Households can not cope with the credit repayment contracted at times by not paying close attention to its unjustified use by financial institutions. They are thus obliged to build up an over- indebtedness file. In this case, they must call on the over-indebtedness commission attached to the bank.
According to the latest publication of this French primary bank, 42.3% of the files received in 2015 concern consumer credit with an average debt level of 20,954 euros. The revolving credit is a concrete example because the lenders do not ask for any justification for the use of this loan. Not surprisingly, he is responsible for 23.1% of household debt in 2015.