No bank verification loans in Canada

Many lenders use instant bank verification (IBV) to process applications quickly—but this involves letting lenders access your online bank account. IBV is advertised as secure, but if you’re looking for no bank verification loans in Canada, these lenders let you manually submit documents instead.

Compare no bank verification loans from installment lenders

These installment loan providers offer no IBV loans, manually reviewing applications the traditional way without requiring you to login to online banking. Depending on the lender, you could get approved the same day or within several business days.

Related: Best online loans in Canada

Compare no bank verification payday loans in Canada

Payday loans are much easier to qualify for than personal loans but are much more expensive and have much shorter terms. You can borrow up to $1,500 to be repaid on your next payday. One of those most costly loans available, you’ll pay $14 to $17 for every $100 borrowed.

Many lenders operate entirely online and don’t accept manually submitted documents, but you can get payday loans with no bank verification from these lenders that let you submit documents online or in person at a local store.

Related: Compare the best payday loans in Canada

What is bank verification and why do lenders use it?

Lenders use instant bank verification to examine a borrower’s finances during the application process. The applicant logs into their bank account online using a securely encrypted portal and authorizes their bank to send relevant account information to the lender. It’s a fast, seamless way to send the information needed to get approved.

For lenders that don’t require IBV, you can verify your application details by sending in copies of recent bank statements, utility bills, pay stubs or tax Notices of Assessment. You might also have to submit copies of your passport, driver’s licence or some other form of government-issued photo ID.

Pros and cons of loans with no bank verification

There are a few advantages and disadvantages to consider with no bank verification loans:

Can I get no credit check no bank verification loans in Canada?

Yes, there are lenders that offer no credit check no bank verification loans. But they’ll need you to email or upload your documents, so they can give approval. Avoid lenders that don’t review your finances at all, because this is most likely a scam. A legitimate no credit check lender will first check that you have the income to repay a loan before giving approval.

Related: No credit check loans in Canada

What do I need to apply for no bank verification loans?

While eligibility requirements differ from lender to lender, baseline criteria for no bank verification loans in Canada typically include residing in the country, being the age of majority in your province or territory (18 or 19), having a bank account and receiving a steady source of income.

During the application process, you’ll likely be asked to provide the following to verify your income and identity:

• A valid government-issued ID (passport, driver’s licence, citizenship card) with your full name
• Proof of address (utility bills, letters from the government, etc.)
• Contact information including your phone number and email address. A valid email is needed so you can receive funds by Interac e-Transfer.
• Proof of income (letter of employment, pay stubs, bank statements showing a steady source of income). Recent tax returns or income tax statements might be required to show your net and gross income amounts.
• Your bank account information (chequing account, routing and institution numbers) is needed to set up automatic withdrawals to repay your loan.

How to choose a no bank verification loan

Before you apply, take these steps to find the best financing for your needs:

• Choose between a no bank verification payday loan or installment loan. A payday loan is faster and easier to get, but it’s usually more expensive than an installment loan.
• Check that you’re eligible. Even if you have excellent credit and a high income, you might not be eligible. Some lenders don’t operate in every province, while others won’t work with self-employed applicants.
• Compare interest rates. Interest rates are the most important factor to consider when getting a loan. Shop around to see which lenders will provide you with the most competitive rate.
• Watch out for extra fees & charges. Fees can drive up the true cost of your loan. Find out if your lender charges loan origination fees, NSF fees or early prepayment penalties.
• Check terms and repayment options. These determine how you’ll repay your loan over a set period of time. Aim for a lender that allows negotiations if your financial situation takes a turn for the worse.
• Read customer reviews. Look at reviews from clients on Trustpilot or the Better Business Bureau website. A pattern of complaints could be a red flag.

Is bank verification safe?

It is, especially when you’re working with a legitimate lender and established bank verification technology. For example, Montreal-based Flinks pulls financial data from millions of Canadian accounts for companies like Wealthsimple and National Bank to verify customers’ identities. Inverite calls itself the “first Canadian-designed real-time bank verification service,” helping over 280 financial institutions quickly and securely connect with users’ financial data.

During the verification process, your lender is simply gathering:

• Your legal name and contact information tied to your bank account
• Your bank account number
• Transaction history, including monthly direct deposits for income verification

How does the bank verification process work for loans?

Bank verification loans are pretty straightforward, with lenders guiding applicants through the process on their website. Here’s a step-by-step look at what to expect:

1. Start your application. Once you’ve narrowed down your search and found the lender and loan you’d like to apply for, head to the lender’s website.
2. Fill in the prompts. During the application process, lenders will ask for your full name, contact information and employment and income details.
3. Start the bank verification route. Verify your application details by logging into your bank account via an encrypted portal like Flinks or Inverite. Your lender will provide security details, noting that it will only access your information for the loan application.
4. Log in to your bank account via the portal. Once you agree to bank verification, follow the prompts to log in to your bank account. Typically, these portals will list Canada’s major banks. Select yours from the list to load the login page.

Bottom line

These days, applying for a loan couldn’t be easier. Instant bank verification is one of the quickest and easiest ways to submit key financial information to your lender. But if you prefer a no bank verification loan, make sure you have all the necessary documentation to seamlessly apply.

Compare no IBV loans

FAQs

• Are there loans that don't involve showing your bank statements?

  Possibly. Most legitimate lenders need to see your bank statements before giving approval, but some might accept other types of documents that verify your income like recent pay stubs or tax Notices of Assessment. Be wary of lenders that don't need any proof of income, because it could be a scam.

• Can you get instant payday loans without bank verification?

  No. Online bank verification is the fastest way for payday lenders to verify your income and identity, and it's what allows these lenders to give instant approval and funding.

• Can you get payday loans with no bank account?

  Unfortunately, it'll be difficult to get payday loans with no bank account. At minimum, payday lenders require that you have an active bank account and recurring income.