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COVID-19: Loan Options and Payment Relief

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COVID-19: Loan Options and Payment Relief
While this COVID-19 crisis continues, lenders are re-evaluating their hardship plans.


Updated on December 7 in 2020.

The majority or all of the items featured on this page are from our partners who compensate us. This affects the products we review and where and how the product appears on the page. However, it does not influence our evaluations. Our views are our own. Here's a list of and .



The COVID-19 crisis has spared almost no one when it comes to financial matters. While a new relief package offered by Congress may help to bridge the financial gap left by the effects of unemployment and other difficulties however, some people may have to resort to loans. If you're already carrying an individual loan, you may require assistance in making your payments.
While a number of personal loan lender have tightened approval requirements, others have introduced low-rate, small-dollar loans to consumers dealing with financial difficulties. Lenders that previously had catchall hardship plans to help customers affected by COVID-19 have switched to a more case-by-case approach.
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If you are in need of borrowing money, you can do so.
It is worth contacting local nonprofits, charities or credit unions to get access to low-cost emergency funds. Alternatively, here are some lenders who can help you in the event that you need to borrow money for a short-term loan.
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Capital Good Fund
is offering a Crisis Relief Loan to customers who reside in the six states where the program operates: Delaware, Florida, Illinois, Massachusetts, Rhode Island and Texas. The small-dollar loans are offered at a low annual percentage rate and deferred payments for the first three months.
Amount of loan: $300 to $1,500.
APR: 5percent for all borrowers who are approved.
Term: 15 months, and payments beginning within the first three months. Payouts are deferred for a further time should the COVID-19 crises persist beyond. Interest will accrue throughout the 90-day deferment period, says the CEO Andy Posner.
The lender will consider the history of a bank in its underwriting process. Instead of using the borrower's earnings and expenses, Posner says Capital Good Fund will try to understand whether an applicant is able to pay for the loan according to their current income and in the event that it is not possible the lender will take into consideration whether the borrower could have afforded the loan before the financial crisis.
The loans are free of application and closing fees, nor prepayment or closing fees and don't require collateral. Borrowers can anticipate a decision two days after the submission of an application. Posner declares that applications are accepted for Crisis Relief Loan will be prioritised in preference to other requests.
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Salary Finance
Salary Finance provides loans through employers and works with Equifax to provide companies with insight into the financial health of employees. The partnership was in works before the COVID-19 crisis started, according to Salary Finance CEO Dan Macklin and the company's offer isn't tied to the virus's impact on the economy.
Through the partnership, employers get access to an anonymous view of their employees' credit information, Macklin says. Businesses can utilize the information for free to spot which segments are suffering the greatest financial strain and address it.
Salary Finance is usually offered by human resource departments as an incentive for employees, Macklin says. Payments made on Salary Finance loans are reported to all 3 credit bureaus.
The loan amount is $1,000 up to $5,000, up to 20% of an employee's salary.
APR: 5.9% to 19.9%.
Time: 6-36 months.
Other borrowing options
They offer some of the best consumer-friendly loans. Credit union loan often comes with a lower APR as well as more flexible conditions than those from a bank or online lender.
Fair- and bad-credit borrowers (629 or lower FICO) may have a better chances of receiving approval from a credit union because the underwriting process tends to involve more than credit information.
Some credit unions also offer these loans, which are less risky than high-interest, quick-term payday loans. These loans can have an APR of 28%.
Online lender: Online lenders can be an easy option . You'll likely require good credit and a steady income to qualify in the current economic climate. If you're uncertain whether you would qualify or the rate you'll get You can get it through NerdWallet. Pre-qualifying doesn't affect your credit score.
If you're worried about the difficulty of making payments
Certain lenders are offering assistance such as deferred payment and waived late fees, to those facing financial difficulties. If you require assistance however, you don't find your lender on this list, consider other options for .
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Best Egg!
Encourages borrowers to log into their account to see the available options.
Customers could select payment deferrals, modified payments, or a debt management plan which can cut monthly payments on all debts, according to the spokesperson for the company.
Discover
The program was previously offered. A spokesperson for the company confirmed that the program is now over, and the company is encouraging the borrowers to reach out for assistance with their loan instead.
Customers needing support for more than one month may call 866-248-1255, or make use of the mobile app to contact a representative from Discover.
HSBC
If you're having trouble paying an amount, you can ask for an emergency scheme by calling 1-800-524-9686. The company has different hardship programs for its products and doesn't provide any specific modifications that are available for personal loan customers. The spokesperson didn't respond to multiple questions for clarification.
LendingClub
It is still allowing those affected by COVID-19 to delay the payment and pay only interest during deferral according to a spokesperson.
The lender updates its website its website, and has a phone number that can be used for inquiries regarding hardship (877-644-4446). The company says it takes up to 10 days to handle hardship inquiries.
In May, LendingClub has launched an online resource to existing personal loan customers dubbed Member Center, according to the news release. Alongside options for payment that can help borrowers restore their regular payment schedule, Member Center has a tool called Credit Profile that helps customers manage their finances to improve their credit. The tool provides members with a comprehensive picture of their financial life, including information like their debt-to-income ratio as well as credit utilization and credit score.
A spokeswoman for the company says that the tool will be accessible to users after the COVID-19 crisis has passed.
LightStream
may allow customers who are affected by the pandemic or another natural disaster to postpone loan payments. Email to receive a phone number to provide you with a person who will be able to discuss your situation. You can't defer a payment if you're within 2 days of making an automatic payment.
The credit bureaus report deferred payments as deferments caused by a natural catastrophe and won't negatively affect your score on credit, as the company claims. These payments are tacked on until the expiration date of your loan, and interest will accrue while payments are being deferred.
Borrowers can log in and go to their Account Services page to request a deferment, or email for assistance.
OneMain
The lender will help borrowers who struggle to make payments. The lender's borrower assistance program that was part of the loan prior to the outbreak will allow borrowers to receive deferred or reduced monthly payments, according to an official spokesperson.
Oportun
They can provide customers with reduced and delayed payment options. The company promises not to declare missed payment as being late the credit bureaus when you make arrangements in advance. Customers can reach the company via email or by calling 650-419-579.
OppLoans
The company is offering 30 days of missed payments with "no questions asked" for those who have been affected by COVID-19, says its CEO Jared Kaplan. In the following days, consumers can opt for 90 days of a financial hardship program that cuts payment in half. The company says that these arrangements will not negatively impact credit scores.
PenFed
will allow borrowers who are eligible to skip a payment. To see whether you're eligible for this, select "Financial Assistance for COVID-19-affected members."
PenFed also offers a service where customers can apply for a short-term financial hardship (less than 6 months) or a permanent financial hardship plan (more than 6 month).
PNC
It says it could offer postponed or reduced payment options in the case of loan customers who are currently facing a financial hardship or who have a hardship plan nearing expiration. For most customers, PNC says it is able to confirm that they are eligible for assistance as soon as possible. For more information, go to the PNC website and click "Apply for Consumer Loan Help with Hardship."
Customers must sign up to online banking to access the .
Potential Finance
The plan includes a forbearance option that will allow customers to extend their payments. The lender hasn't shared much information about the plan since publishing the blog post in March, however customers can contact the customer service department via .
Upstart
There are loan modification options for some customers affected by COVID-19, including an extension of the loan term or forbearance, as per the Upstart spokesperson. Previously, customers could defer up to two months worth of payments without interest or penalties.
Contact Upstart by email
Wells Fargo
The deferred monthly payment will be available for three consecutive cycle of billing for eligible individuals who are eligible loan customers. If you already have assistance may still apply for additional assistance. Log into your online account to review your options.
To connect with an Wells Fargo customer service representative, call 877-269-6056.



About the author Annie Millerbernd is a personal loans writer. Her writing has been featured in The Associated Press and USA Today.







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