Getting a loan nowadays has become more accessible than ever. However, I have seen many potential borrowers keep asking themselves this question: Can I get a loan without my BVN number? Because many loan apps require their BVN before accessing their loan package.
In this post, we will be discussing how it is possible to get a loan without a BVN and the importance of a Bank Verification Number (BVN) in the application of loans, the results of having a BVN, and alternative options for getting a loan.
A BVN is an acronym that stands for Bank Verification Number. It is a number that is assigned to every individual with a bank account in Nigeria. A BVN was first introduced by the Central Bank of Nigeria (CBN) in 2014 to ensure the security of financial transactions and reduce the occurrence of fraud.
The BVN links all of a customer’s accounts to one number. This means that if you have about ten bank accounts in Nigeria, these bank accounts are linked with only one number, and that number is unique to the owner, making it very easy for the bank to verify the identity of the customer.
Is BVN Important for Loans?
Well, the answer is a big YES.
BVN is very important for loans. Below are the reasons why:
Quick Identity Verification: A Bank Verification Number makes it very easy for banks and other financial institutions to identify a loanee. This helps ensure that loans are given to the right individuals and also prevents fraud through impersonation.
Credit Evaluation: Loan sharks often use BVN to check if a loanee is creditworthy. They link the BVN to the bank history of the loanee’s account and assess the financial history, including whether there was any collection of loans in the past and the repayment history.
Compliance with CBN Regulations: In order for banks to comply with the Central Bank of Nigeria’s regulations, it is mandatory that they collect the BVN of customers banking with them to prevent financial crimes.
Yes! You can get a loan without a BVN, they are many loan apps that gives loan without BVN although the process might be a bit challenging and difficult. Before accessing loan without BVN these are some points to consider:
Huge Interest Rates: If you find a lender who doesn’t care about your BVN, then it is important that you get ready for high-interest rates. Lenders do not completely trust you and tend to see you as a huge financial risk. Hence, they double their interest rates compared to what a bank would normally charge for that same amount of loan.
Limited Options: Most banks and reputable financial institutions require a BVN before they can give out loans to individuals. Hence, if you do not have one, then you are limited to borrowing from microfinance banks or other informal lenders.
Reduced Loan Terms: Individuals that are usually given a loan without a BVN are usually given a short repayment time, which may lead to financial strain and difficulty.
Scam Risk: It is crucial to be vigilant when trying to get a loan from a lender who doesn’t require a Bank Verification Number. Some may be fraudulent schemes and people seeking to defraud innocent borrowers. Therefore, ensure you always conduct thorough research before borrowing from such lenders.
Can I Get a Loan Without My BVN Number? Alternative Options
Having found that it is actually possible to get a loan without a BVN, let’s explore places or, probably, people who are willing to give out a loan without asking for a BVN:
Loans from Friends and Family: Personally, I think the first place or people who would be willing to give you a loan without a BVN are your family and friends. This option is likely to come with minimal or no interest at all and favorable repayment terms.
Microfinance Banks: There are some microfinance banks that are willing to give out loans without asking for a BVN. However, ensure to carry out research to check if they are genuine and registered microfinance banks to avoid getting into trouble.
Register and Get a BVN: To save yourself the stress of looking for where to get a loan without a BVN, simply apply for one at the bank. Having a BVN is not just for loan purposes but also enhances your overall banking experience.
Getting a loan without a BVN, might be your second thought due to the challenges and risks involved. A BVN doesn’t just play a significant role in loan applications but is also beneficial for your overall banking experience.
If you need a loan and do not have a BVN, I encourage you to register one at the nearest bank. Also, before you take a loan, make sure to do proper research on the lender to avoid expensive mistakes that may cost you dearly.
