Loans that don’t involve credit checks are popular for a number of reasons.

You can secure these loans without having a perfect credit score; the loans won’t affect your credit rating; and because there’s no delay due to credit checking, the funds are usually available almost immediately.

Various types of loans with no credit checks are available, each with different pros, cons and risks.

Peer-to-peer lending

Peer-to-peer (P2P) lending is an online system that matches lenders with borrowers as a third party service. Lenders can be anyone with a lump sum of money who wants to grow their nest egg by collecting interest from a borrower.

These lenders aren’t obligated to do a credit check because they set the terms of the loan. While these sorts of loans can be easier to secure, they also carry higher interest rates and shorter repayment terms.

Payday loans

Payday loans are a type of short-term loans that are payable upon your next payday, hence the name. You can borrow money up until your next pay cheque, at which point the full amount, including the interest, becomes due.

Payday loans carry high risk because it’s too easy to become dependent on these loans on a month-to-month basis.

Company loans

Some companies will allow their employees to borrow money from them. They seldom require a credit check because the repayment instalments are usually deducted from the employee’s salary even before it’s deposited into their bank account.

Naturally, you’ll only be able to leave the company once the loan is paid off which, depending on how much you borrow, could mean you’re stuck there even if a better opportunity comes up.

Asset-based loans

Asset-based loans use a paid-for asset such as a car or luxury watch as collateral, so there’s no need for a credit check. The asset is taken by the lender and stored securely until the loan and its agreed upon interest are paid off.

Once the loan is repaid, the asset is returned to the borrower. These loans don’t not require credit checks, and they also don’t affect the value of the asset in any way.

Bridge loans

Bridge loans are granted on the expectation of a pay-out, such as the proceeds of a house sale or a settlement from a court case. The borrower can submit proof through deed of sale or court order that they will be getting the money within a reasonable amount of time, so there’s no need for a credit check.

Interest may be payable in the interim, but once the borrower receives their pay-out, the loan is repaid in full.

Loans against commercial property

If your company owns an unencumbered and paid-off commercial property, you can use this property as collateral on a loan. This is particularly useful if you need capital for the business, in the event you need to buy equipment, for example.

The value of the loan is determined by the value of the property and therefore doesn’t require a credit check.

Loans with no credit checks at Lamna

At Lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork. We also offer bridge loans and loans against commercial property.

For more information about securing a loan with no credit check, contact us on 086 111 2866 or simply complete and submit our online application form.