A personal loan online is an unsecured loan offered with minimal documentation only need BVN for approval of an instant loan. Therefore, BVN card are essential documents for the citizens of Nigeria applying for a personal loan online
BVN card fulfils your eligibility criteria for biometric verification, verifies the financial and taxation activity of a borrower. So, do keep handy your BVN card while initiating a personal loan application process.
Advantages and uses of BVN card while applying for Personal Loan Online
A personal loan supports various financial requirements like home renovation, vacation, buying home appliances, medical bills, debt consolidation, and many other purposes.
Hence you need a BVN card, which is a critical KYC document for a personal loan online
With an increasing number of fraudulent borrowers, submission of BVN cards is made mandatory to check the financial history of the borrower, to see if bad debts, bankruptcy, or blacklist status exists or not. So, let’s have a look at some of the main features of a BVN card:
Identity Proof – BVN Card is an essential identity proof with a full name and a picture of the borrower. If you have applied for a new passport and it is under process, financial institutions accept BVN cards also as identity proof. It is not a substitute for a passport but an equally important identity proof for a personal loan.
Financial History – The BVN gives an overview of the borrower’s financial behavior and gives clarity to the lender whether to approve the loan or not. Overall, a BVN card reflects the creditworthiness of a borrower.
Check Credit score – Visit the official CRC website to know your credit score. Enter the BVN card number and submit your request for a CRC score.
Income tax filing – All individuals salaried or self–employed eligible for income tax are expected to file their IT returns. The IT department has necessitated linking your bank account with BVN Card, as your income tax returns will be directly credited into your said account.
Opening a bank account – BVN card is considered the most vital document for opening a bank account to open savings or current accounts.
Foreign travel – Cash transactions related to foreign travel of more than 50,000 Naira/- inclusive of forex purchase require BVN card details.
For claiming an income tax refund – Sometimes the TDS deducted from the taxpayer’s income exceeds the actual tax they are expected to pay. To cite the excess tax paid, the taxpayer must have a BVN associated with their bank account.
But, availing of a personal loan without a BVN card can be a task, as lenders use it to keep a track of your financial behavior and an alert against monetary fraud.
Why You Should Never Share Your BVN With Strangers
Why does flypay (and your bank) keep urging you not to give out your BVN to strangers? Because your BVN is your financial identification card, anyone could use it to gain access to part of your personal information and commit fraud.
For example, if someone phones to tell you that your flypay account has a BVN error, they will ask you to provide more information about yourself (such as date of birth and full name) and persuade you that they are a real employee. Then they’ll ask for your PIN, credit or debit card information, which is a critical information that could lead to money being stolen from your account.
It’s important to note that simply possessing your BVN data, or any other of your identity cards, would not allow someone to access funds in your account. However, think of your BVN as a key to your finances, and you should never share it on public forums or social media, and you should never give it out to anyone, app, or company you don’t know.
If you have any questions about someone calling you or sending you an email/text seeking your BVN, contact your bank/financial service provider and ask them directly if they require your information.