After Senate Leader MConnell smashed people’s hopes of receiving $2k stimulus checks as extra funds, the struggle to pay off bills and monthly rent continues. While a personal loan for those affected by Covid 19 would seem hard to find, there are some trustworthy organizations and companies that do offer them.
The first resources to checkout when borrowing money are the charitable organizations, credit unions or local nonprofit organizations in your community. There are philanthropists who donate money for grants, which are coursed through and coordinated with charities and nonprofit entities.
However, since these organizations give priority to the underprivileged sectors of the community; your status as a citizen could render you either eligible or ineligible to receive financial grant.
Still, if you do not qualify, you’ll probably have better chances of borrowing money from private lenders. Just be sure that you are dealing with lending companies that are verifiable as legitimate businesses, through a corresponding license to operate as a Small Loan Company.
Verifying if a Lending Company is Licensed to Operate
Be in the know that in every state, there is a Department of Financial Institutions (DFI) where the records of small loan companies can be verified, particularly their license. It would be best therefore to check with your state’s DFI if the lender you’re considering, is among those that still hold a valid license.
While some lending institution will indicate their Small Loan Company (SLC) License on their website, the DFI still recommends checking such info as some SLC licenses have expired while others have been suspended.
Actually, the DFI website provides a link to an online verification tool via a website called NMLS Consumer Access. NMLS stands for Nationwide Multistate Licensing System that serves as registry of all licenses granted to different types of lending businesses. The use of the verification tool is offered as a free service to consumers, so they can first confirm if a lending firm they intend to transact with is operating legitimately.
What to Expect as a COVID-19 Personal Loan
Keep in mind that while there are licensed lenders willing to extend personal loans to people struggling with economic hardships caused by the pandemic, they are also businesses that need to operate profitably.
That way, they can continue to keep their business afloat and be able to continue providing unsecured personal loans that traditional banking institutions do not offer. The loans are still subject to interest rates but are available for settlement for longer terms.
Avant for one, is a lending firm that is often included in the list of most recommended private lending firms. It holds a Small Loan Company License #SLC-1457409, operating as a wholly-owned subsidiary of Avant LLC, registered under NMLS # 1440089.
The loan amounts Avant offers range from $2,000 to $35,000, where the Annual Percentage Rate (APR) or the applicable interest rates are between 9.95% and 35.99%/ APRs depend on the loan amount and the duration of a loan term, which can be from 24 months up to 60 months. Additionally, Avant collects an Administration Fee that is equivalent 4.75%.of the principal loan and discounted from the loan proceeds, or the loan amount that will be credited in your bank account.
To illustrate how Avant’s terms apply, it provides as an example a $5,700 personal loan that is repayable in 36.months. The loan proceeds that will be credited to your bank account will be $5,429.25, which is net of the 4.75%. The principal loan amount will be payable by way of 36 monthly installments fixed at $230.33 per month.
While the above is only an example, it would be best to get in touch with an Avant customer service staff who can refer you to a lending officer. The latter will in turn will help you workout a personal loan that will enable you to cope with your COVID-19 economic struggles.