Instant bank verification (IBV) is an innovative way for lenders to quickly and securely verify a borrower’s income and identity. Loans can be quickly processed and approved thanks to this technology. However, some individuals may prefer to avoid instant bank verification for several reasons. Some may have privacy concerns, while others may have limited access to online banking. Whatever the reason, such borrowers may consider no instant bank verification loans.
Let’s go into more detail on where you can get loans without instant bank verification.
Key Points About IBV
- Instant bank verification allows lenders to securely verify your income and identity by gaining access to a temporary read-only copy of your bank statements.
- For those who prefer not to involve this type of technology in the bank verification process, borrowers can opt for a no instant bank verification loan.
- These types of loans require the borrower to manually upload their bank statements and other documents, which can make the loan application and approval process a little longer.
What Are Loans With No Instant Bank Verification?
A no instant bank verification loan is a type of loan that does not involve IBV. Instead, the lender will verify your bank information the traditional way without the use of an encrypted and electronic verification process.
That means you’ll need to submit various documents to the lender, either in person or online, then the lender will manually review the documents to verify your finances.
| What is instant bank verification? When you apply for a loan online, many lenders will use IBV to quickly and securely verify your income and identity. During your loan application process, you’ll be required to enter your banking login credentials in an encrypted portal that is hosted by a trusted third-party such as Plaid, Flinks and Yodlee. Once you enter your details, your bank will confirm your identity and provide your lender with a temporary copy of your bank statement. Lenders will use the bank statement to assess your income and loan eligibility. IBV is near-instantaneous and helps speed up the approval process while minimizing risk thanks to its encryption. |
Borrow Up To $50,000
No Instant Bank Verification Loans Vs No Bank Account Loans
While they may sound similar, there are key differences between no instant bank verification loans and no bank account loans:
| No Instant Bank Verification Loans | No Bank Account Loans | |
| Bank Account Required? | Yes | No |
| Bank Account Information Review | Done electronically | Not required |
| Funding Methods | – Direct deposit – E-transfers (if offered) | – Cash – Prepaid cards – Cheques |
Ultimately, the biggest difference between these two types of loans is that one requires the presence of an active bank account, while the other does not.
Learn more: No Bank Account Loans In Canada
Benefits And Drawbacks Of No Instant Bank Verification Loans
A no instant bank verification loan has its perks, but there are also some drawbacks to consider. Here we’ve listed both the pros and cons so that you may make an informed decision.
Advantages Of No Instant Bank Verification Payday Loans
No instant bank verification loans offer a handful of benefits:
- Increased Privacy And Control: With no bank information required, you won’t have to worry about your sensitive financial data getting into the wrong hands. Plus, you can control what information you provide the lender.
- Apply Online: You can still apply and complete the loan application online.
Potential Drawbacks Of No Instant Bank Verification Payday Loans
Consider the following downsides to no instant bank verification loans before applying:
- Limited Options: With IBV growing in popularity, many lenders are requiring borrowers to go through the instant bank verification process. Those without a bank account or unwilling may have to find a different lender.
- Slower Processing Times: Without the use of instant bank verification services, lenders will need to manually review your banking information, which means it will take longer for you to get approved and funded.
What Do You Need To Apply For Loans Without Instant Bank Verification?
Documents that you may need to submit to the lender for review include the following:
- Bank statements
- Pay stubs
- Tax forms
- Utility bills (for proof of residence)
- Photo ID (for proof of identity)
| Why Do Lenders Use IBV? Lenders that use IBV generally don’t accept bank statements or pay stubs because they can be altered by the applicant. With IBV, lenders can securely verify the applicant’s financial income and financial health. Similarly, some individuals don’t receive pay stubs, they are paid via e-transfer, which is hard to validate without IBV. If you’re looking for loans without IBV, some lenders may accept employment letters, but they’ll likely call your employer to verify your income. |
How to Apply For A Loan Without Instant Bank Verification
To apply for a no instant bank verification loan, follow these steps:
Step 1: Research Lenders That Offer These Loans
Do some homework to find lenders who offer loans with no instant bank verification. An easy way to do this is to use an online loan comparison platform, like Loans Canada’s CompareHub. A tool like this can pull up a list of lenders who offer loans that match your financial and credit profile, and your specific needs.
Step 2: Check Lender Requirements
Find out what lenders are looking for from loan applicants. More specifically, pay attention to the minimum requirements for the following:
- Income
- Credit Score
- Debt-to-income (DTI) ratio
Each lender will have their own specific thresholds, but most typically require a good credit score, sufficient income, stable employment, and a low debt-to-income ratio. That said, you may find lenders who are willing to work with bad credit borrowers or those who earn non-employment income.
Step 3: Get Pre-Approved
Getting pre-approved for a loan gives you a picture of your borrowing capacity and helps you come up with a clear budget. It also speeds up and streamlines the loan application and approval process, resulting in faster approvals and funding. Further, it strengthens your credibility with lenders, showing them that you’re a serious and qualified borrower.
Step 4: Compare Offers
Comparing loan offers helps you find the lowest rates and best terms. This ensures that you choose an option that fits your budget and saves you the most money on unnecessary costs.
Step 5: Gather Documents And Apply
Prepare all the required documents, fill out the lender’s loan application, and submit all documentation along with your application. Depending on the lender, you may choose to complete the loan application process either in person or online.
Step 6: Get Funded
With a no instant bank verification loan, you’ll still need to provide the lender with your direct deposit banking information in order for them to deposit your borrowed funds. Otherwise, you can opt to access the money through cash or e-transfer, if the lender offers these options.
Bottom Line
If you prefer not to involve an instant bank verification process as part of your loan application, you may consider no bank verification loans. Just be sure to do your research to find the right lender who can offer you a loan that matches your financial needs and preferences.
