There can be situations in which people have to depend on government financial aids and benefits because they do not have a stable source of income of their own. This can happen because of unemployment or disability. If you are living on benefits, then getting external financial aids will seem to be an impossible task for you. However, luckily, there are some great loans for people on benefits that you can check out for sure. Most of these loans are unsecured in nature and provide you with instant cash in times of urgent needs. These loans are not alternatives to the government aid but can definitely help you at times when you need money urgently.
When loans for people on benefits are granted, the finance companies will either opt for a higher rate of interest or give you a loan against the benefits check that you get from the government. It is quite possible that you will have to fulfill both the conditions in order to get a loan. Whatever amount you need will be deposited directly to your bank account. In order to receive these loans for people on benefits, you will have to prove that you are a US citizen and are at least 18 years of age. You might also have to prove that you are indeed getting government financial aid. There are two ways in which you will be able to get these loans. The first way is to opt for offline methods. You can directly go to the office of the personal finance company and talk to their representatives about getting a loan from them. They will honor your requests and grant you a loan right there.
The second option is to opt for online loans for people on benefits. In this case, you will be granted a loan within minutes and the entire processing of the loan will be done within a split second. The online facility is much better as the approval is faster and you don’t even have to waste your time in going to the company office and filling out various forms there. Simply go online and you shall be able to get a loan within moments. Remember, these loans have a very high rate of interest. They are very lucrative opportunities to obtain finance. However, because of their interest rates, you must always be making sure that you get them only when you really need them.
All the loans that we review or recommend all have:
- Minimum period of repayment: 6 months. We do NOT recommend taking any loan with repayment period of less than 6 months, as you will have difficulties paying
- Maximum period of repayment: 3 years
- Annual Percentage Rate (APR): less than 12%. Any rate higher than this will negatively impact your finance
- Below is an example of the loan mentioned in this article, with a loan amount of $20,000
|Flat Interest Rate||7.50% p.a. (Effective Interest Rate of 14.39% p.a.)|
|Total Interest Charged for the Loan||$20,000 x 7.50% p.a. x 3 years = $4,500|
|Loan amount + Total Interest||$20,000 + $4,500 = $24,500|
|Monthly Instalment||$24,500 / 36 = $680.56|