07 AUGUST 2019
Beneficiary Loans: Benefits and Things to Consider
Did you know that you don’t need to be employed to secure a personal loan? It’s true! Even if you’re collecting needed assistance to get by, unexpected expenses can still pop up. A short-term investment may be necessary to build a better financial future for yourself and for your family. If you’re a beneficiary, you have options.
Too often, beneficiaries struggle to get approved for even modest short-term loans. Many lenders consider their financial histories disqualifying. However, the long-term benefit of a well-timed and wisely invested short-term loan could be just what a beneficiary needs to get out in front. If you or someone you know is a beneficiary, continue reading to find out how you can secure a beneficiary loan.
What is a beneficiary loan?
A beneficiary loan is a short-term personal loan for people who rely on public support programs such as Disability Allowance, Jobseeker Support, New Zealand Superannuation, Sole Parent Support, Supporting Living Payment, Unsupported Child’s Benefit, Working for Families, and many others.
Employment is not a requirement for loan approval. You just need some form of income. Fortunately, a benefit is considered income, but many lending institutions still turn away beneficiaries who need to borrow money. Beneficiary loans are intended specifically for these people.
Quick cash loans for beneficiaries work the same as loans for anybody else. A sum of money is allocated to the borrower, with interest rates and a borrowing limit based on the borrower’s financial circumstances (income and other expenses). Beneficiary loans like those offered by our team here.
Superloans place less priority on a borrower’s credit history, understanding that those collecting benefits of likely struggled financially in the past. We simply don’t think this should prevent you from investing in yourself today. We work with beneficiaries to determine the ideal terms for their loans.
What do you need to consider when getting a beneficiary loan?
Like any other loan, you should make your decision carefully, with preparation, research, and patience. A beneficiary loan is a big decision. It’s important to know what you’re entering in to.
While beneficiary loans are often met with scepticism, lenders are required not to impose loan terms that a borrower cannot manage. Closely examining your budget is essential. It’s important to know what you can afford to pay for. Ask yourself the following questions as you consider a beneficiary loan.
- What are the interest rates and term of the loan? What are the fees associated with this loan?
- How much can I reasonably afford for weekly / fortnightly / monthly loan payments? Will I have enough left over to get by?
- Is a beneficiary loan the best way to get the money I need? If the expense is urgent, would simple savings do the trick?
- Is there any reason to think that my financial situation will change within the time it will take to repay my loan? Will those changes make it harder to make my payments?
- Has the lender I’m working with received glowing reviews?
Don’t let your benefits hold you back
We can’t always pick and choose the times when we need some extra cash. If you’re collecting government benefits, don’t feel like you don’t deserve the opportunities a personal loan can provide. Contact Superloans today to learn more about what a beneficiary loan can do for you.