Loans during pandemic crisis

As a consequence of the great crisis, both health and economic, caused by the coronavirus, many citizens are forced to apply for an online personal loan or consumer credit in order to alleviate this great blow they are suffering.

It will also be the businessmen who will need to resort to extra financing in order to keep their facilities, machinery or merchandise in good condition and to be able to resume their normal activities as quickly as possible.

But what coronavirus loan options are currently available?

Loans for individuals during the coronavirus

Loans for individuals during the coronavirus

As such, there are not too many loans to alleviate the effects of the coronavirus. The Government has indeed proposed to act as a guarantee on loans to face the rent payments for certain people with especially difficult circumstances. But beyond this, any other person will have to resort to the usual personal loans.

Loans for individuals are the most requested for this purpose, and continue to be so after the coronavirus crisis. In fact, many users ask us about the possibility of borrowing to buy food for quarantine, but also financing for the company in the face of the covid-19 crisis. More and more families, self-employed people and companies see the need to apply for consumer loans to alleviate daily needs.

This crisis has led to only the trades with essential activity being maintained, the rest, if it cannot be carried out in the form of telework, will have to pause its activity. This causes many families that currently do not receive enough income to continue making their payments, such as rent, electricity and water bills or other types of monthly expenses they have.

Consumer loans will be small loans, similar to fast microcredits, but with higher interest rates than mortgages. The minimum amount is usually $ 500 and the maximum will depend on the entity and the financial profile of the applicant and they usually include commissions for opening, cancellation or early amortization, but they can be up to $ 60,000 in some entities.

They are characterized by being an exchange of goods and services, so a real estate guarantee will not be necessary, in these loans the guarantee will be a personal object.

Requirements for applying for fast coronavirus loans

Requirements for applying for fast coronavirus loans

The minimum requirements for a loan to overcome the coronavirus are these 3:

  • Have demonstrable income
  • Not be on any delinquency list
  • Have an official and valid identification document

Due to the coronavirus crisis, some measures are applied so that families can make the payment of loan installments. Citizens may delay the payment of fees, if the income of the family unit does not exceed $ 1,645.80, or if it is shown that there is a joint debt with several creditors that is 35% of the income of the family unit.

Best loan for debt restructuring

Many people who want to reschedule an old installment loan or combine several loans into a single loan ask themselves which loan could be their best loan for a debt rescheduling. It is not an easy question to answer. For this reason, it would be urgent to carry out a settlement before the planned debt restructuring.

Looking for the best loan for a debt restructuring

Looking for the best loan for a debt restructuring

A debt rescheduling is only worthwhile if the interest level for the new loan is significantly lower than the interest level that was still valid for the old loan. In addition, care should be taken to ensure that any premature loan repayment does not result in any fees that would nullify the interest savings.

In principle, not only an installment or consumer loan, but also an overdraft facility can be rescheduled. In practice, this variant is even very often practiced.

This would be particularly worthwhile if the account has been in the red for a long time and there is no realistic prospect of bringing the negative balance back to zero. In addition, the interest on an installment loan is significantly lower than that on an overdraft facility.

Application and approval

Application and approval

Debt restructuring can only be carried out if the customer has a certain minimum level of creditworthiness. To do this, the Credit Bureau information would have to be in order and the income high enough. If neither of these two conditions is met, it will usually be very difficult, if not impossible, to find a suitable loan for debt restructuring. When rescheduling a debt, it should also be borne in mind that the new loan replaces one or more old loans and is not taken up in addition.

In the latter case, the requirements for personal creditworthiness would be significantly higher than for debt restructuring. If all the requirements are met, the loan is paid out very quickly. It is expressly earmarked and may only be used for debt restructuring.

Best loan for debt restructuring – repayment

Best loan for debt restructuring - repayment

Every loan must be repaid properly and on time. Further details are regulated in the loan agreement. In the case of an installment loan, this means in concrete terms that a fixed monthly repayment installment is payable throughout the term. Each bank offers different options regarding the amount of the installment and the term.

Those who prefer low rates should choose a longer term. On the other hand, he should be aware that a long term is always associated with high interest rates. Anyone interested in a quick repayment of the loan should therefore check carefully whether they can increase the monthly installments. This could shorten the term and keep the interest rate low.

Official loans compared – How to compare correctly

There are occupational groups that are particularly valued by banks. These include civil servants. They benefit from their almost permanent employment because they are civil servants for life. But their regular income from the state also makes them coveted customers. This is particularly noticeable when granting loans, because civil servants benefit from lower interest rates and longer terms.

There are differences in official loans

There are differences in official loans

A comparison of official loans clearly shows that the offers of the individual banks differ significantly. This applies not only to the amount of interest, but also to the remaining conditions. Officials get this advantage because the risk of default is extremely low, because if they are not to blame, they cannot be terminated.

Public employees also benefit from these advantages. When granting loans, they get the same benefits as their civil servants.

The purpose, conditions, special repayments and much more worth knowing

The purpose, conditions, special repayments and much more worth knowing

Some banks require the use of a government loan. Others, however, do not. Some government loans are even earmarked. But online banks generally don’t ask for it. However, with so many offers, it is not easy to find the right loan for civil servants straight away. It is therefore important to compare official loans against one another. The differences emerge here, which also brings a financial advantage. It is also important for decision-making whether the respective bank offers its customers a free special repayment right, because many require money for early loan repayment.

The handling of the banks is also different as far as the term is concerned. With longer terms, the rate can be reduced, which is an advantage for an official in training because of the lower salary. Official loans in comparison can be found on the Internet. The loan seeker receives all relevant information at a glance and can in most cases apply for the official loan directly from the bank online.

Applying for loans through capital lender is easy. An online loan application is sufficient to address both banks and private investors at a serious level. Of course, the borrower decides who gets the loan.