In times of extreme emergencies when there is an immediate need to have access to funds quickly, a crisis loan is the financial product you can turn to. Crisis loans offer you the funds so you can have peace of mind in times of extreme stress. These loans do not incur any interest but you do need to pay the loan back at a future date. Here are some points to consider on how to avail of this type of loan.
Who is Eligible
A crisis loan is usually reserved for people who are in an immediate emergency situation. You need to be at least sixteen years of age and over to be able to apply. You need to prove that there are not enough funds available for yourself or your family in the short term as a consequence of a natural disaster or accident. You also need to prove that serious life threatening consequences can befall you if you are not provided access to these funds.
Crisis loans are beneficial for daily expenses such as food and groceries. They can be used to pay the rent in advance or for fuel needs. They can be used also for travel expenses if by some chance you have found yourself stranded in a faraway place. People who have suffered natural disasters such as floods or fire that has caused great stress to their property and jobs can use this loan to purchase beds, clothing and heating.
In times of emergencies you can only be given three such loan payments in a particular year. More than three crisis loans can still be potentially given to individuals depending on the gravity of the circumstances. This may include avoiding poverty due to a pending payment when you have begun work but have not been given wages yet. No further need to prove that you are in a crisis situation if you have been a victim of disasters and the like.
The amount of money awarded to people who have applied for crisis loans varies. This usually depends on the individual’s circumstances, which may include the number of dependents, savings and even social fund loans. The money is received usually in a bank account. This is by far the safest as well as the most effective means to dispense it for people who are in crisis mode.
You can apply for crisis loans over the phone by contacting your nearest provider. Alternatively, you can also go online and download the application form. If by some chance your application was denied, you can still appeal the decision in writing by explaining in detail why the reason for the denial is erroneous and then request for a review of your case.
A crisis loan is paid back in easy and flexible payment schemes, which can conveniently be deducted from your benefits. If you already have a job then you can also request that they deduct a small portion as per agreement. Payments are usually made on a weekly basis according to what you can afford to pay and will not commence until such time that the crisis is over.