A loan is considered to be financial support extended by the institution to every individual at a predetermined interest rate. Based on the credit history of every borrower, different types of loan facilities are provided. There is even no credit check loan, which helps people with bad credit history to fetch loans.
CIBIL, which is the abbreviated form of Credit Information Bureau Limited score, is the first check, which reveals the credit history of an individual. Generally, a financial or non-financial institution is less reluctant to provide a loan facility for a low CIBIL scorer. No credit check loans are the types of loan facilities, which are provided to the people even without the credit check. This is considered to be the best kind of loan for individuals who possess a bad credit history and still wish to avail of financial support. It is quite different from the usual secured and unsecured loan type. However, the rate of interest is higher than the usual normal loans provided.
Features of No Credit Check Loans Are as Follows:
- The loan is granted without checking the credit history of the individual.
- Approvals of the loan are done instantly without much delay.
- The rate of interest is higher.
- Tenure period is flexible, and it might increase and decrease as per the requirement.
- The loan amounts are even available for the higher figures.
However, there are some risks attached to no credit check loans.
Higher Rate of Interest
If evaluated based on interest cost, they impose heavy bills in the name of interest. On an average rate calculation, they generally impose the rate anywhere between 6 to 199 percent or even higher. This makes the entire proposition to be an expensive one.
Short Term Loan
Often, it is seen that the customer suffers due to the cash crunch situations generated due to the short-term loan period. It even creates pressure in the mindset of the loan borrower.
Though it is seen that the loan provided asks for the one-time initial processing fee, but later it demands heavy late payment penal charges, which adds up to the loan cost.
So, now even if you possess a bad credit score history, enjoy the benefits of quick loan facilities without delay. All you need to possess is a proof of income source and then get the loan sanctioned.