What is a doorstep loan? Features, Pros & Cons

Ailsa Adam May 22, 2021

Borrowing loan is an age-old practice which inhibits the urgent requirement of cash. For different reasons, a borrower can borrow money. Depending upon the need of the borrower, a lender sets some eligibility criteria and interest rates. There are different types of loan available in the financial market, such as personal loan, home loan, loan against property, auto loan, two-wheeler loan, loan against securities and many more.

Sometimes people who belong to rural areas or belong to the unprivileged part of society also need money as loans. For them, there is a particular type of loan available. The primary benefit of this loan is money can be delivered to their house. Here we will discuss this type of loan in detail. 

What are loans at the threshold?

Loans at threshold is basically doorstep loans, by applying which a borrower can enjoy the benefit of receiving cash even without getting out of the house. Nowadays, it is very common as well as earned popularity, especially to persons with disabilities.

By applying for this loan, one can easily borrow a small amount of money without keeping any mortgage or guarantor. Besides, without performing much paperwork, one of the respective lender agents will reach your house and provide you with the necessary amount. When a person opts for this loan, he must not get it approved by any other financial intermediaries like the bank or its authorized bodies. Instead, a borrower can directly approach a lender.

Therefore, this type of petty loan is just accurate for people who are suddenly facing an unwanted financial crisis. It fits perfect for those who hate to undergo lots of paperwork or a series of verification and time taking credit score analysis. 

What are the qualification parameters?

Although less just like to sanction any other loan, this type of borrowing also requires some qualification parameters that every borrower should meet. Following are the parameters that a borrower needs to look at:

  • The borrower must have an active bank account that he can access at the time of repayment. Sometimes, this type of loan also can be sanctioned even if a borrower does not have a bank account. It all depends upon how you can convince the lender.
  • Suppose the borrower is a senior citizen. Old people are believed to be unable to come out of their own and ask for financial help. This loan is specially designed for them.
  • Apart from a senior citizen, a person can also be eligible for loans at the threshold if he has multiple disabilities. It becomes impossible for him to visit the lender’s office directly. In that case, the borrower must show some proof of disabilities.
  • Apart from other money lenders, banks also provide the facility of doorstep loans to their preferred customers with minimum processing charge and paperwork.
  • A borrower must provide all the identity proofs for the processing of the loan. This identity proof includes only government registered IDs. 
  • Valid address proof is also required. To prove his housing address, the borrower must provide a valid card approved by the United Kingdom government.
  • The borrower must have completed a minimum of 18 years of age, i.e. adult.
  • Last but not least, the person must be a citizen of the United Kingdom who has valid citizenship.

What are the features of this loan?

There are multiple features of the loan at the threshold.

  • Fast disbursal of loan
  • Less credit score analysis
  • No requirement of extra charge while repaying the monthly instalment a little late.
  • Easy repayment option with monthly payment facility
  • Less paperwork
  • It saves your time as you need not step out of the house
  • Comparatively low-interest rate if having a good credit score.
  • Short repayment tenure.
  • A small amount can be borrowed.
  • It is an unsecured loan with no guarantor required


  1. Ease of getting liquid cash by sitting inside:

From the term ‘doorstep’, you can easily get what it means actually. Receiving cash by sitting inside your home is the ultimate benefit of this loan. To complete any of the steps, you need not get out of your house.

Besides, sitting in your house, starting from the application up to the disbursal, can be done within a few times. For this reason, doorstep loans are much better than applying for other loans. Moreover, this type of loan mitigates the requirement of cash to every kind of people.

  • Get your money quickly:

Whereas applying for a house loan or auto loan, or education loan will take time to process, this type of loan can be easily disbursed. Because the whole process is carried out without signing the bulk of papers, it is sanctioned quickly.

Therefore, the person who urgently needs this type of loan is just perfect for them. Moreover, even after fixing a source of fund, you need not stay in worry.


  1. There is a limitation in borrowing:

With this type of loan, a borrower can only borrow a certain amount of money, which is limited to a small amount. A person can borrow from €500-€5000 at a time. This is a disadvantage of loans at the threshold.

  • The Rate of interest is sometimes higher:

Although you will be notified at the beginning about the interest rates during the repayment time, you may discover that you are being charged high as you need to pay some consolidating interest rates.

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