Borrower verification – where can we borrow without a transfer?

The verification transfer in online loans is not just for the lender to get our bank details and to know which account to transfer the loan to. For a long time it was (and still is) a reliable way to confirm the identity of the client and gain confidence that no one is impersonating the person whose details appear on the application. Today he is slowly moving away and introducing other solutions.

Why is the verification transfer not always working?

The reasons can be different. The first is that such verification by transfer may take a long time, because for a loan company to be able to issue a decision, it is not enough to make the transfer, but to post it on the company’s account. If the transfer is made between different banks, the loan company will receive it only at the next banking session, which may take several hours, and sometimes even longer. If the lending company uses the transfer as a verification method, it is worth finding out in advance in which banks it has accounts to be sure that the verification fee will reach their account expressly – we wrote about it in the article Which company will get the loan soon – company review.

The verification transfer may also eliminate the possibility of borrowing for some social groups at the outset. Older people, despite having a bank account and also often access to electronic banking, often do not use it and do not know how to make a transfer. In addition, what happens if there are no funds in the customer’s account or even there is overdraft? Unfortunately, the lack of funds makes this transfer impossible, so such borrowers often have to give up the offer of the company they have chosen.

Verification by means of an express application

The solution that is successfully used by some loan companies are internet applications that allow immediate verification without the need to transfer the verification fee, and thus reduce the time needed to obtain a loan. Everyone who wants to use such an application is required to provide their login details for electronic banking (i.e. login and password). Thanks to this, the application can connect to the borrower’s account and download his personal data, and sometimes also the transaction history to confirm the creditworthiness of the company’s client.

Non-Internet verification methods

money cash

Another, though not so popular method of confirming the customer’s identity is to personally identify him. This is the case in three types of loans: with housekeeping, those paid with a check and implemented at the post office after showing a special SMS code. In the first type of loan (Provident specializes in it), the borrower is visited by a company employee at home, to whom the client must show an ID card. Money from the loan is paid to him immediately after signing the loan agreement.

With loans paid by check, the contract is delivered by courier and it falls to him to identify the borrower and give him a check. However, the SMS code that is sent to the customer along with the loan decision entitles him to receive money at the post office, if the borrower is also issued a valid ID card. In any of the above cases, you not only need to make a verification transfer, but you do not need to have a bank account.