Have you ever thought about getting a Loan Without BVN? If yes, then you’re in the right place. In this article, you’ll learn everything you need to know about Loans Without BVN in Nigeria.
The BVN which is known as Bank Verification Number is a Biometric system mandated by the Nigeria apex bank (CBN) that each and every Nigerian banking in the country must have an identification number that will be used in identifying a customer across all banking platforms in Nigeria.
The BVN is unique to every customer and can only be used by one individual. This is a result of the fact that each BVN carries the personal details of that individual who is linked to that BVN. The details that can be found on the BVN are name, date of birth, state of origin, and address.
From 2018 to 2022, the demand for digital loans in Nigeria has been on the increase and this has led to so many fintech and banks giving out loans and capitalizing on the potential money they could make from offering loans.
According to Mr. Victor Etuokwu, the executive director of retail banking of Access Bank Nigeria. During their last conference before the launching of Access Bank DBALite Account, he stated that Access Bank disburses 12 to 13 billion Naira every month as a loan to its customers. In his speech, he mentioned that the bank controls over 60 percent of the digital loan landscape in Nigeria and which is one of the reasons the bank needs to do more.
If you look at this, you’ll see more reasons why there is a rise in the demand for digital loans because even the traditional banks already giving out loans without collateral.
What Is BVN?
According to Wikipedia. The
Bank Verification Number which is popularly known as
BVN is a biometric identification system that was introduced by the Nigeria apex bank (CBN). It is a modern type of security system which was mandated by the Central Bank Of Nigeria and every bank in Nigeria has implemented the security.
These modern security measures in line with the CBN Act 1958, were meant to reduce the fraud in the banking system of Nigeria.
The BVN uses a system that allows it to capture fingerprints and facial photographs of the client and it comes in an 11-digit number that is unique to each and every individual in Nigeria. This same number can be used to link all the accounts owned by that individual in Nigeria.
On opening a bank account in Nigeria, it is a compulsory mandate that you must own a BVN which will be issued to you by the bank. Once you’ve gotten your BVN, you can now use that same number to open various accounts.
The high rate of fraud in Nigeria has compromised the security system of the banking sector in Nigeria. The need for a better method of securing customer information and money needed to be introduced to substitute the old security method which is (Password and PIN).
The BVN has proven to be a better alternative since it was introduced because it creates a unique identity across the Nigerian Banking industry and with its physiological attributes- fingerprint, voice, facial feature, etc. Addressing the old security challenge has become a thing of the past.
How To Get Your BVN/ Enroll For BVN
For you to get or enroll for Bank Verification Number, you must walk into any traditional bank in Nigeria to enroll for your BVN.
Below are step-by-step processes to enroll for BVN in Nigeria.
- Visit any bank in Nigeria
- Your Biometric Data will be captured (fingerprint, photograph, and signature)
- You’ll be given a Ticket ID
- You’ll Receive Your BVN Number via your registered phone number
How The BVN Works
The BVN works in such a way that it captures your physiological attributes- fingerprint, voice, facial feature, or photographs to secure your account.
Advantages of BVN/ Benefits Of BVN
- Biometric enrolment is helpful to people who cannot read and write.
- BVN helps the banking system to identify loan defaulters that have been blacklisted by the credit bureau.
- BVN is a great initiative that helps in reducing illegal banking transactions and improving national financial intelligence gathering.
How To Check BVN Online
For any reason, if you’re unable to remember your BVN, all you need to do is to use your phone to check the number.
You can easily check your BVN by dialing *565*0#. You don’t need an internet connection or smartphone to do that. You’ll only be charged 20 Naira for each BVN check
How To Get a Loan Without BVN
You must have been eager to know how you can get a loan without BVN right? I purposely didn’t disclose that on time so that I can better explain why your Bank Verification Number is important to you and any money lender you wish to use.
Most lenders today offer loans without collateral and this means that they need a secure means of verifying your identity before giving you a loan.
If lenders offer loans without collateral or did not ask for your BVN, then it is unethical in the lending business, because that lender might end up becoming a loan shark that will use every means necessary to get back his money even if it has to do with threatening your life.
Your BVN serves as collateral for lenders offering loans without collateral. If for any reason you refuse to pay them their money, they can submit your BVN to the credit bureau for blacklisting and further investigation.
So if you’re looking for a loan without BVN in Nigeria, kindly know that there is no such company or moneylender offering loans without asking for BVN unless that lender is a loan shark.
I have seen articles on the internet claiming that you can get a loan without BVN. That is not true! I had to do serious research to see how possible it is to get a loan without BVN. So if anyone tells you that you can get a loan without BVN, then that person must be a family member or a friend who doesn’t need to verify your identity before giving you a loan.
Below Are the Best Loan Companies In Nigeria Offering Loans
These are the best companies you can get loans from in Nigeria without any problem. These companies will ask for your BVN but be rest assured that they are legit and licensed by the CBN to offer loans.
- Alat
- Carbon or Paylater
- Fair Money
- Branch
- Palm Credit
Where To Get Loans Without BVN
Below are places where you can get a loan without having to provide your BVN
- Loan From Family
- Loan From Business Associates
- Loan From a Friend
Conclusion
BVN is very important when it comes to banking in Nigeria. The BVN will help in creating a layer of security for your account and will also help in identifying you across all your banks. I believe you now understand what BVN is and what the BVN does.
If you have any questions or inquiries, you can drop them in the comment section. We’ll try and respond to them as fast as we can.
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