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Being disabled or unemployed is hard, especially after knowing the fact that it doesn’t give you the privilege to be free from financial woes. Time and time again, you will face difficult money-related challenges that able-bodied individuals face. Unfortunately, we hear that loans are available only to those who are employed and receiving high income. So what if you’re not capable of working anymore? Or, worse, you are employed but you’re only receiving an income that is barely enough to cover your daily expenses.
Borrowing from a family member or a friend might be an option, however, it is not the best idea at all times. The good news is, there are other financial alternatives to choose from and one of which is through loans. There are loans intended for people on benefits and these are enough to help you acquire the financial support you need. But before walking through the loans for people on disability, let us first find out who is qualified for such benefit loans.
Who Are Eligible For Benefit Loans?
When we speak about people on benefits, these are basically people who have a disability, whether psychological or physical. However, the recipients of welfare benefits are not limited to these people. in fact, a majority of the world’s population receive public assistance. These are ordinary people and families who are looking for a job or those who are currently employed with very low income. They can also be single parents, carers of disabled people, and young ones who are homeless.
Qualifying for loans on benefit sounds a little complex but in reality, it’s actually not. Most requirements are just basic and the approval rate is high enough providing that you have a good credit remark. Nevertheless, you can still acquire a loan even if you have a bad credit history. Here are the prerequisites that you need to meet:
You receive a regular income
The income may come from employment, benefits, or pension. The income is necessary because it proves your capability to repay the loan on time. When you receive welfare benefits, your chance of getting approved is higher because the lender assumes that you have the fund to return their money.
You have an active bank account
Firstly, the bank is used to verify the borrower’s identity. It is also where the money will be sent so the borrower doesn’t need to personally come to the lender’s office. In addition, this is also where the lender will get his payment by automatically debiting the loan when it’s due time.
You are old enough
The borrower should 18 years old and over; however, there are lending companies who will ask the applicant to be at least 21 years of age.
These are the basic requirements that the applicant should meet to be qualified. Most of the times, there will no background check so the credit history is not an issue. However, with a good or excellent credit remark, you can bargain for lower interest rates and the chances of approval are higher. Nevertheless, there are still lenders who will accommodate people on benefits amidst their bad credit.
Loans For People On Benefits
Being unable to provide for yourself or your family is devastating; that is why lenders have designed specific loans that will cater to your needs. If you’re looking for another way to stretch your income, then here are your options:
Individuals with disability have an access to loans offered by commercial banks and other financial establishments. The money lent can be used to buy equipment that could assist their special needs, such as a specially designed shower, toilets, or stair lifts. The loan is also useful when you want to pay for vehicle accommodations for easy transportation.
Commercial loans come with interest rate; however, you can always ask for a financial assistance to find out if there are free loans for people on benefits.
Buying a home requires a huge amount of money, however, you may be eligible for special accommodations when you want a mortgage loan. There are programs designed for home buyers on benefits that offer affordable interest mortgages.
Being disabled should not hinder you from buying a new home. In fact, mortgage lenders are not allowed to decline your application just because you have a disability. But then again, you need to meet all the necessary requirements to be qualified.
Business Loans For People For Disabled Individuals
Sadly, people with disabilities find it difficult to obtain traditional jobs. It’s also challenging to work in a conventional working facility without being assisted. However, earning money is not a hindrance to many PWD (persons with disability); in fact, they can provide for themselves by being self-employed.
Luckily, there are loans available for people on benefits who want to start their own small businesses. These loans can be obtained by talking directly to the respective departments.
One of the most popular sources of loan is the government. Every country’s administration has designed loans for people on benefits and these alternatives are either free or affordable. When you need a financial support, you can start by asking your state for assistance.
The loan can be used for different purposes. Some borrowers utilize it to acquire home ownership while others use it for small down payments.
Car Title Loans
If you’re a car owner with a clear title and fulfilled loan, then you can take advantage of car title loans. This loan will require only a few requirements, including the title of your car. The beauty of this loan is that you can still use your vehicle, however, there is a risk if you fail to repay.
The loan itself comes with high-interest rates and the charges may double if you don’t repay on time. Also, the lender may legally acquire your car in the case of default. Therefore, you should think of this alternative as a last resort. Nevertheless, there are many options available for people on benefits and most of which are cheap.
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