No Doc Loan as an Alternative to Conventional Loans

The recent financial crisis has brought about paranoia to banks. Now, you may observe that most banks are stricter when it comes to approving and providing loans to borrowers. Try applying for a typical personal loan and you would surely be annoyed at how tedious the process could be and how numerous and confusing the list of documentary requirements could get. If you dislike having to prepare and submit too many documents to process a loan application, you should choose to apply for a no doc personal loan instead.
A no doc loan or no documentation loan does not require the usual long list of documents that are prerequisites for conventional personal loans from banks. Before the recent financial crisis, borrowers simply complete application forms for the application process to roll out. Now, aside from the application form, some loan providers may ask for a document or two that would support identification and income requirements. You could still find lenders that really do not ask for any other documents aside from completed application forms.

No need to prove income

One setback of conventional loans is that you bear the burden of proving your income. If you do not like to prove your financial status (through numerous and updated documents), a no doc personal loan is for you. It is up to the loan provider to find other resourceful ways to find out about your personal finances. You are not even required to furnish a copy of your credit record. But the loan provider surely would find out your credit score as part of its assessment process.
Thus, you would effectively prevent having to deal with a long list of documentary requirements. This way, you may prevent experiencing troubling confusion when it comes to re-checking and completing the financial papers. There is no more need to seek for updated or latest financial documents, which could be tedious, hard, and costly to obtain.

Interest rates and fees

A no doc personal loan logically imposes higher interest rates. The loan provider has to make sure that risks taken are accounted for. But you could still do something about it. You may perform a comparison shop to find a no doc personal loan with the lowest interest rate compared to all others. You may be surprised at how you could possibly find products with attractive rates.

How about the fees? A no doc personal loan may require a slightly higher processing fee. In the end, the cost is still reasonable especially if you would consider the expenses you would incur in obtaining the documents required in conventional loans.

Above all, a no doc personal loan could be found and processed online. This makes such a loan more convenient. You do not need to personally drop by branches of banks or talk for hours to bank officers. You could use the Internet to find no doc personal loans, compare quotes, and mount your loan application.

Andrew Black has been working in the finance industry for several years specialising in low doc loans