Getting personal loans during COVID-19 crisis

As the pandemic continues its run, many lenders are struggling with difficult loan management. While some banks seem to have taken a more restrictive direction, raising the requirements for the granting of personal loans, others seem to have understood the financial difficulties of consumers by granting small-dollar loans at very affordable rates. Let’s see together what are the best opportunities on the market for those looking for low-cost loans for emergency management and what solutions are proposed by the main credit institutions to those who are facing financial difficulties.

Should you borrow money?

Non-profit organizations, charities or local credit unions have access to low-cost emergency funds. Alternatively, there are some lenders able to grant short-term cash loans, here they are.

Capital Good Fund offers an emergency loan of $300 to $1,500, with low annual rates (Loan APR: 5%; Term: 15 months) and deferred payments for the first 3 months, to consumers living in Delaware, Florida, Illinois, Massachusetts, Rhode Island and Texas. This loan does not have application, closing or prepayment fees and does not require special guarantees; in two days, applicants will be able to receive an answer.

Salary Finance guarantees, through an agreement with partner companies, loans for employees, disbursed through the same employers, who will receive privileged information on the financial health of the employees. Having obtained this (anonymous) information, companies can use it to actively support human resources who are experiencing the greatest financial stress. The amount paid goes from 1000 to 5000 $, and in any case does not exceed 20% of the salary (Loan APR: 5.9% to 19.9%; Term: 6 to 36 months).

At Credit Unions, as non-profit institutions, more favorable loans are usually offered, on flexible terms (lower APR than bank or online lenders). Borrowers with a FICO score below 629 usually have a better chance of getting approval from a credit union. Some credit unions also offer early paycheck loans, which are safer than the same short-term loans and higher interest rates.

By looking at online loans, you can find quick options for getting an emergency loan; a good credit score and steady income will normally be required to qualify today.