The current pandemic has affected pretty much everyone at this point. One of the most prevalent effects has been a drain on people’s finances. Although there have now been two stimulus packages passed by Congress, many might still have to turn to loans in order to stay afloat. Because of this, some personal loan lenders are now offering small loans at a low-rate to help people through their financial crises.
If you need a small amount of cash in order to get you over a hump, there are many local nonprofits, charities, and credit unions that are willing to give small-dollar loans. Here are some of them:
1. Salary Finance
They with employers and Equifax in order to provide loans and give companies more information about their employees’ financial well-being. Worker credit information remains anonymous, but employers can use this information to see which groups of people are facing financial distress and help them.
Loans are offered through human resources at most companies and they range from $1,000 to $5,000 with an APR of 5.9% to 19.9% and a borrowing term of 6 to 36 months.
2. Capital Good Fund
This lender offers crisis relief loans to people in Texas, Florida, Rhode Island, Illinois, Delaware, and Massachusetts. Loans are offered at amounts that range from $300 TO $1,500 with an APR of 5% and a term of 15 months. Payments only start after the first 3 months and can be deferred for more time if COVID continues. With this said, however, interest will still accrue during this deferment time period.
In order to get approved for a loan, this lender looks at one’s banking history instead of their current income and expenses. There is no application, fees, or collateral and decisions about whether or not Crisis Relief Loans are approved or not will take two days.
3. Online Lenders
If you need an emergency loan, online lenders can be a fast option if you have good credit and a steady-enough income.
4. Credit Unions
Loans offered through credit unions often have a lower APR and more flexible terms. If you don’t have the best credit, you also have a higher chance of getting approved through these nonprofits. Additionally, some offer payday alternative loans which are usually safer than short-term loans with high interest.
Other lenders, for larger loans, have been accepting deferred payments and no late fees for people struggling. Here are a list of some of these kinds of lenders:
You can now request a hardship plan if you struggle to pay a personal loan from HSBC.
At the beginning of the pandemic, they implemented a deferral period of one-month. They have since discontinued this, but there is still opportunity for this if one reaches out.
This company offers 30 days of deferred payments for people struggling because of the pandemic. After this period, people can apply for a 90-day hardship program that cuts payments in half while not affecting one’s credit scores.
They offer loan modifications, such as forbearance and an extended loan term, to some people who are affected because of COVID.
5. Best Egg
This company lets customers choose options such as adjusted payments and a debt management program that lets people decrease monthly payments on their debts. They also offer payment deferrals.
6. Wells Fargo
They now let people defer monthly payments for three billing cycles in a row. Even if you have received forgiveness in the past, you can still apply for more.