Could You Qualify for a Coronavirus Hardship Loan?

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Banks

Several banks are issuing corona hardship loans. If you have an existing relationship with a bank, call and ask about the bank’s hardship loans available. The interest rate you get and the length of your repayment period depend on the particular lender. The American Bankers Association also provides detailed information about which banks are offering financial relief during this time. You can Find a bank specifically on his website for more information.

Credit unions

Coronavirus hardship loans are largely available through credit unions. If you’re not already a member of a credit union, you’ll need to join one to explore this route. You can use those provided by the National Credit Union Administration Locator tool for credit unions to find one near you (some credit unions require you to live in a specific area in order to qualify, so this tool will help you narrow down your options). Many credit unions have coronavirus hard loan borrowers automatically defer payments for 90 days, which is great if you are in a financial crisis.

How do I qualify for a COVID-19 hardship loan?

Each lender sets their own requirements for the coronavirus hard loan.

A coronavirus hardship loan is a short term loan for those who can show that their income has been cut by the COVID-19 pandemic, so you may have to prove a loss of income. Unfortunately, there have been many cases of coronavirus fraud since the beginning of the pandemic. So don’t be shocked if you are asked to provide lots of details about your loan application.

Also, keep in mind that the better your credit score, the greater your chances of getting approved for a pandemic personal loan. They check your creditworthiness online for free. If your credit score isn’t perfect, check out our guide to improving your credit score for key credit building strategies.

What else do I need to know about corona hardship loans?

Coronavirus hardship loans are typically smaller loans. Most hardship loans range from $ 500 to $ 5,000 – enough to get you through a few months of unemployment. The repayment terms for these hardship loans are flexible and range from six months to five years.

These loans come with low interest rates (some start as low as 3%). they are far better than payday loans or other predatory loans that appear to offer quick cash but charge inappropriately high interest rates.

When looking for payday loans, make sure that you explore alternatives first. Check out our lists of payday loan alternatives, no credit check loans, and quick and easy online loans to see what your options are.

Alternatives to the coronavirus hardship loan

If you’re not eligible for a coronavirus hardship loan, you can apply for a regular personal loan instead. This shouldn’t be your first choice – you can get stuck with a higher interest rate and less flexible term than a hardship loan. In general, however, you pay a lower interest rate than a credit card.

If your primary concern is paying medical bills, then look for a medical loan. We have compiled a list of top quality medical loans that could be a good starting point for your search.

If you’ve lost your job, read our guide to borrowing while unemployed to learn how to qualify for an alternative income personal loan (e.g. unemployment benefit).

If you own a home, you can also try applying for a home loan or line of credit. Some lenders took a break on home equity lines of credit at the start of the pandemic, but a lot has happened since then. You may find it easier to get one at this stage of the pandemic.

Of course, there is also the option of contacting the people to whom you owe money and requesting direct discharge. For example, if you ask for help, your landlord may allow you to postpone rental payments for a few months, your credit card company may waive a late fee if you need more time to make your minimum monthly payments, and your utilities could give you extra time to pay your bills.

If you have a mortgage you should be able to pause your payments by putting them in indulgence. It’s not automatic – you have to get it from your lender. And of course you have to make up for the missed payments at some point. But it can give you some breathing space during this difficult time.

Explore these relief options in addition to a coronavirus hardship loan, especially if you are really struggling to make ends meet.

Lenders offering COVID-19 assistance to existing customers

The lenders listed below have a wide range of programs in support of coronavirus hardship. While these lenders may not offer specific hardship loans, options include reduced or deferred loan payments, waived late fees, and access to debt management programs.

Even if your lender is not listed, you should contact them directly to see if they offer a moratorium or other financial relief. Be sure to check out the other COVID-related ones financial aid programs also available.

The following details are current as of the time of publication. Contact your lender for the latest information on Coronavirus Payment Facilitation.

Avant

Avant offers a range of financial solutions for clients in need. Use the Avant app or your online account to find out what your options are. You can also call Avant’s customer service team at 800-712-5407 for information on COVID-19-related assistance.

Best egg

Best egg Customers should log into their account via the Best Egg account portal to find out which payment programs are available. For example, some borrowers are eligible for deferred payments. Alternatively, you may be able to temporarily adjust payment amounts or access debt management assistance.

Discover

At the beginning of the pandemic, Discover the personal loan initially offered a month’s grace period to customers who needed help. This program has now ended. However, Discover continues to provide support to customers who need it on a case-by-case basis.

You can reach the Discover customer service team online, through the mobile app, or through the mobile text app.

HSBC

HSBC customers who have been directly or indirectly affected by the coronavirus and are having difficulties paying their personal loans may be entitled to hardship help. If you have an HSBC personal loan, contact the lender for assistance.

To find out what types of assistance you may qualify for, call HSBC at 800-524-9686.

Lending Club

Lending Club Members have access to a range of support options, including a 15-day grace period during which they can make payments with no penalties or fees. If that’s not enough, you can contact us for additional help.

For more information on available programs or to apply for assistance with your LendingClub loan, call 1-877-644-4446. Note that it can take seven to ten days to process.

LendingPoint

LendingPoint is another financial institution that provides assistance to customers who need additional time or flexibility with loan payment. It expands multiple solutions for customers so contact us to find out what’s available.

If you need help with your LendingPoint loan call 888-969-0959.

LightStream

LightStream You may be able to defer your monthly payment if the pandemic struggles you. To find out if you are eligible for payment facilities, log into your Account Services page and request a deferral or email LightStream directly.

Marcus

Marcus Loan customers affected by the COVID-19 pandemic can postpone their loan disbursement for a month without additional interest. Instead, the loan term is simply extended by one month.

Navy Federal Credit Union has several options for eligible members who are having difficulty making payments on their loans. These include loan extensions, deferred payments, and pandemic relief loans.

To find out what may be available to you, call the NFCU customer service hotline at 800-336-3767 or visit the NFCU COVID-19 pandemic help page online.

OneMain

Customers struggling to make their OneMain loan payments may be eligible for deferred payments or reduced monthly payments through the OneMain Borrower Assistance Program.

If you need help with your OneMain loan, call 800-961-5577 to see the options available.

Pay off

Pay off offers a range of assistance programs to customers in financial distress due to natural disasters including COVID-19. The easiest way to find out what help you can qualify for is to log into your Payoff.com member account. You can also contact Payoff through LiveChat, email, or customer service at 949-346-8740.

PNC

For PNC customers, there are several ways to ease hardship cases, including payment assistance. If you are in distress due to the COVID-19 pandemic, you may also be able to defer payments for a period of time or cut your loan payments. Customers can also qualify for a loan modification to reduce their payments over the long term.

Update

Update offers a range of assistance for customers affected by COVID-19. Log into your upgrade account to find out what options are available to you.

upstart

upstart may offer you alternative payment plans, hardship assistance, payment cuts, deferrals, or other repayment arrangements.

Upstart will ask you to log into your account or call the support hotline directly at 855-438-8778.

Wells Fargo

Wells Fargo Personal Loans Help is available to customers struggling with loan payments. Eligible customers can qualify for deferrals for three consecutive billing cycles. Help is also available for those who have already received help. To find out more, log into your account, use the Wells Fargo app, or call 800-241-0028.

The COVID-19 pandemic has been difficult for everyone – some more than others. When you are in financial need, you are not alone. Check out our list of coronavirus resources for more information on where to find help and support during this challenging season.


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