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How Loans Can Help You In These Times of Crisis

The spread of COVID-19 is more than just a medical emergency. For those who were not allowed to work from home or who do not have enough sick leaves or vacation leaves to earn a month’s pay, the pandemic is considered a monetary breakdown. Nobody is 100% prepared for this enhanced community quarantine. As we all look for ways to be safe against the virus, we also need to explore financial opportunities to help us survive.

How loans can help

Personal loans and cash loans are usually unsecured – they do not require any collateral. You can borrow a certain amount as long as you fulfill all the requirements asked by the lender. Although these come with a higher interest rate than secured loans, these are an excellent option for those looking to have enough cash to get through the lockdown.

Reasons to get loans during a crisis:

1. Cover for essentials

In this pandemic, we are not only getting into a battle against the virus but also against financial anxiety. One of our priorities should be household essentials that could be stock up while we are required to stay at home. The money from personal loans can help much in ensuring that you can buy and stash on toiletries, groceries, and other supplies. Once you receive the payment from the loan, you can plan your consumables for three weeks. If the amount allows, you can even stock up on these essentials that could get you through even two weeks after the lockdown.

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2. You have an emergency fund

Not all Filipinos are secured with a savings, or a regular salary or a health insurance plan. A lot of people depend on government subsidies to get by each day. Having cash on hand is as essential as wearing a surgical mask and maintaining social distancing. You might be incurring interest charges, but you are assured that you have enough money to keep your family surviving during and after the pandemic.

3. You have mental security

The fear of contracting the virus, the death of a loved one, and the loss of income are traumatic events that we are all facing today. According to experts, these are the most stressful experiences that a person can endure.

You wouldn’t want to be caught in between the dilemma of going out there to earn a living while risking your life and staying at home to secure your health while worrying about food and essentials.
Thus, personal loans or cash loans give you the peace of mind to stay at home and save lives without sacrificing your chances to have enough money for survival.

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Things to watch out for:

1. Interest rates

There will be numerous offers for different types of loans. And though everyone is in dire need of cash, that doesn’t excuse you from scrutinizing the offers. While staying at home, you have the luxury of time to review the features of a loan, compare the advantages and disadvantages, check theinterest rates, and decide which ones suit your needs.

2. Payment terms

As much as possible, look for a loan that won’t ask you to pay immediately. Some personal loans let you pay your first installment after 30 days. Ask your lender about the repercussions of extending your payment terms and reducing your monthly payments. This will help you a lot to endure the lockdown and provide ample time for you to get back on your feet.

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3. Charges

Are there processing fees? How much will be deducted from the loaned amount? Can the fees be subdivided and added to your monthly payments? Negotiate terms for your cash loan or personal loan. Evaluate your situation and offer terms that your lender can consider before the loan approval.

4. Length of processing

Online loans generally come with faster approval rates compared to personal loans. However, in this time of crisis, banks have already modified their working hours. Even mobile, chat and telephone support were also changed in line with the enhanced community quarantine. Do not expect your application to be as fast as the lender promised it. Manage your expectations. We hope for the best but expect the worst to avoid disappointments.

Staying on top of your finances

We are indeed dealing with severe financial hardships due to the pandemic. Although we can turn to lenders for relief, our financial stability and endurance are in our hands. The government can do and will do its part in alleviating the impacts of the pandemic, but the huge chunk of survival depends on us. We all can start by keeping up with our bills. Although electric and water companies have extended the due dates, we can pay, pause, or reduce our balances before the 30-day grace period. Make sure that you keep your money safe, and you take control of it. Be careful when heading to the Atm for withdrawals or when paying for your groceries. Get smart with how you use your cash on hand and keep track of where your money goes.

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