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How Does Corona Virus Affect Your Loan Rate?

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How Does Corona Virus Affect Your Loan Rate?

The coronavirus recession has deeply impacted the global economy and has given rise to economic uncertainties. This kind of recession is unique in itself, and a phase that has never been experienced before, due to which its consequences are unknown. While there is no clarity about when the global economy would ramp up, one needs to start preparing for the worst.

If you are thinking of borrowing a loan right now, then regardless of the type of loan you wish to borrow, you need to first understand how coronavirus affects your loan rate and also your repayment capability. To figure that out, you need to do some initial assessment of the job market that you are involved in.

In the meantime, if you have already borrowed a mortgage or plan to borrow one for a property that you have identified, you need to make an informed decision. Although the real estate rates have plummeted, you never know whether or not it would further decline. Therefore, before making any hurried investments, you need to thoroughly assess your options and plan your finances. To help you do that, we bring you this detailed guide about how coronavirus affects your loan rate.

Coronavirus Loans | FAQs

  1. How to plan my finances during the coronavirus outbreak?
  2. How does coronavirus affect your loan rate?
  3. What is the best type of loan to pay my bills during coronavirus?
  4. Can I borrow a loan without leaving home?
  5. Can I borrow a payday loan while working from home?
  6. Do you advance emergency loans during coronavirus?
  7. Can I borrow a car loan during coronavirus?
  8. Can I borrow a loan after applying for Universal Credit?
  9. How to plan my finances during coronavirus?
  10. What should I do if I have multiple small debts?
  11. Should I borrow a loan during coronavirus?

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How to plan my finances during the coronavirus outbreak?

Post the coronavirus outbreak, everyone seems to be worried about their finances and unless you had saved up for emergencies, it could be too late to do that now. Therefore, it is always recommended that at least twenty percent of your monthly earnings must be saved for future emergencies. Depending on your previous financial habits, you need to make the next move. In case you are on the verge of exhausting your savings in the next 3 to 5 months, then it is recommended that you apply for the 3-month payment holiday on your loans and credit cards.

You are also advised to check your auto-payment accounts such as PayPal for subscriptions. While you are confined to your home, you may not require your gym membership and also several other subscriptions that you may have subscribed to. This should help you cut down your costs while the economy is unstable. Aside from that, you could also apply for a personal loan to help you buy groceries until you can get back to work and earn a full-time income to support yourself and your family.

Also, check if you qualify for benefits such as universal credit and apply for them. However, it may take some time for the benefits to arrive and until then you could survive on the personal loan funds. Money Pig offers several loan options to those who need it. Some of our popular loan options include personal loans, emergency loans, bad credit loans, and several others. So, once you have identified the type of loan you wish to apply for, simply fill and submit our online application and we will connect you to the right lenders.

How does coronavirus affect your loan rate?

Coronavirus is a global pandemic that has deeply affected the global markets, and the UK is no exception. The economic repercussions of the lockdowns can be seen in the prices of the stocks listed on the London Stock Exchange. Bullion and oil prices also continue to plummet, which clearly shows the strain that’s put on all quarters of the economy. With so many people applying for Government benefits, the Governments are also under financial stress, so there is no clarity about when the economy would bounce back.

All of this has a direct impact on the loan rate because lending money in the current market conditions means higher risk. As the job market is unstable, there is a higher amount of risk that the lenders need to bear and are therefore likely to charge higher interest rates in the days to come. However, if you have a good credit score and need a loan right now, then Money Pig’s direct lenders would be able to advance the loan. Our lenders are ethical and reputed individuals that can offer you the best deal during these uncertain times.

What is the best type of loan to pay my bills during coronavirus?

Depending on your personal circumstances, you can apply for a personal loan, student loan, emergency loan, or bad credit loan. Personal loans are unsecured loans that can be used without any restrictions and that makes it the most appropriate choice for those who wish to pay various bills. Money Pig offers personal loans to those in all types of employment, whether full-time, part-time, or remote. However, if you are pursuing full-time education and need some money to pay your bills then consider applying for our student loan. This is a unique loan option available to students in the UK, which allows them to pay for their personal expenses. As there are no restrictions on how the funds are used, this option is in par with the personal loan.

If you do not qualify for any of the above loan options due to a low credit score, then consider applying for Money Pig’s bad credit loans which are specifically designed for those with low credit scores. In case you are in an emergency situation, know that Money Pig offers a wide assortment of emergency loan options. That includes same-day loans, fast cash advances, instant loans, and several others. At Money Pig, we have no trouble finding you a lender willing to advance a loan on weekends or public holidays as well. If you are worried about how coronavirus affects your loan rate, then we must tell you that all our direct lenders have high ethical standards. So, you can count on us during these times of crisis.

Can I borrow a loan without leaving home?

Yes, you can submit an online application to Money Pig and borrow a loan from Money Pig’s network of direct lenders straight from your home. Money Pig offers online loan application submission so there is no need to personally meet us. You simply need to fill out an application and submit it to us and we will do the loan processing for free. Once we have completed the necessary formalities such as scrutiny of the loan application and a soft credit check, its time for you and the direct lender to be at a consensus.

So, we connect you to the direct lender and the two of you need to come to terms and get into a loan agreement. Before the execution of the loan agreement, the concerned direct lender would run a hard credit check on you to confirm your eligibility for the loan. Once you are through with that, the loan is credited to your bank account. Since our process is designed to accept applications and also sanction the loans online, you need not worry about leaving your home to get a loan.

Can I borrow a payday loan while working from home?

If you are working from home, then you can still apply for a payday loan from Money Pig just like you would otherwise apply for one. So, if you continue to have a job, then go ahead and apply for a payday loan from Money Pig. Money Pig teams up with some of the best direct lenders to offer affordable payday loans. Most people choose to borrow a payday loan due to its quick and easy processing, however, we’d like to inform you that Money Pig offers several other loan options that you can explore. The best alternatives for payday loans are personal loans and same-day loans offered by our direct lenders. Submit your application to Money Pig to know more about our direct lenders and what they have in store for you. With transparency and ethics at the forefront, our Experts would provide you with a detailed explanation of how coronavirus affects your loan rates and payday loan application.

Do you advance emergency loans during coronavirus?

You can get an emergency loan during coronavirus through Money Pig, but not from Money Pig. That’s because Money Pig does not advance any type of loans as we are a financial intermediary and not a direct lender. Instead, we put you through one of the many direct lenders that we are tied up with and it is that lender you would be transacting with. Money Pig only receives your application for a loan, and depending on your requirements and qualification, channelizes the application to the lender who is most likely to approve your loan.

We do the initial scrutiny after a soft credit check, which shows us your financial details just as you see them and helps us decide whom we must forward your loan application to. This saves you from the trouble of applying to multiple banks or lenders individually and helps expedite the process by minimizing the possibilities of loan rejection. For years, we have been doing business with these direct lenders and are fully aware of what they look for before approving a loan.

Therefore, depending on the amount you wish to borrow, your credit history, income, and certain other factors, we make the decision. This accelerates the entire process and whichever loan you apply for, you would receive a speedy response. However, when you need the money urgently, make it a point to mention that in your loan application and we will categorize it as an emergency loan application and process it on a priority.

Can I borrow a car loan during coronavirus?

With the current economic trends, not many lenders would offer you this option, but we do. As we have access to a wide network of lenders, we can always find you someone willing to offer a car loan and that too without in-person meetings. So, if you have just identified a good deal and wish to purchase a car then you could do that by borrowing a car loan or a personal loan from one of our lenders.

We recommend that you consider doing so with a personal loan because it would get you immediate ownership of the car and is best suited for buying pre-owned cars. With millions of people out of work, there are many cars available for sale and we understand that you wish to close the deal as early as possible.

To accelerate the process, we offer online processing of loan applications to our customers. So, you need not worry about coming down to our offices or those of our direct lenders. You can sit back at home and have the money coming into your UK bank account. Another option that we have for you is the student loan, which is available to those pursuing full-time education. So, if you fall under that category then you can still buy your dream car with this loan. Like all other loans, this one is also processed online.

Can I borrow a loan after applying for Universal Credit?

Yes, you can apply for a loan after having applied for Universal Credit, while you are waiting for the funds to arrive. Universal Credit can take a long time to be credited into your account. We completely understand how frustrating that waiting period can be and therefore provide financial assistance even during those times. However, we would like to remind you that you can also apply for a universal advance and if approved, you can make use of those funds. Again, that is going to take some time. In the meantime, you could consider borrowing one of our short-term loans such as personal loans, student loans, bad credit loans, etc... Also, there’s no need to panic about how coronavirus affects your loan rate because our lenders would offer you the best deal possible. Moreover, since you are applying to Money Pig, you gain access to several direct lenders. Now that is unlike applying to a bank or an individual lender, where your options are not limited.

How to plan my finances during coronavirus?

During the coronavirus outbreak, you need to ruthlessly cut down your expenses regardless of your savings because the period is full of uncertainties. Unless there is a definite vaccine for this pandemic — which is then manufactured in large quantities and supplied to the masses — the economy may not recover. So, you need to spend wisely and be more futuristic. So, spend some time identifying your expenses that can be cut down. The easiest way to do this is by pulling out your credit card statement and other financial records. Also, look up for all the subscriptions that you have signed up for and cancel the ones that you don’t need. Also, find other things that you have been spending on such as online shopping, fast food, or anything else, and control your spending.

Also, stick to cooking at home, mowing your own lawn, and doing all the other chores that can help you save money. Next, if you have multiple high-interest debts then you need to consider consolidating them into a single loan. This should help you cut down your monthly expenses. Money Pig offers loans to consolidate debts at a lower interest rate so if you wish to apply for one then we would be glad to help. Just make sure that your existing lenders are willing to let you consolidate your loans and that there is no penalty for doing so. You can confirm that by going through your loan agreement. In fact, even if you have loans with pre-payment penalty clauses, consider negotiating a waiver of that in exchange for a prepayment. Since the economy is unstable, most lenders would look forward to that sort of arrangement. This is particularly true in the case of lenders who have lent unsecured loans.

What should I do if I have multiple small debts?

Multiple small debts translate to varying interest rates that you could be paying right now. As most small debts are unsecured, you should consider settling them through the consolidation of debts. The best way to go about with it is by borrowing a single loan for a longer duration, and at lower interest rates. While consolidating your loans, always make it a point to prioritize consolidating those that cost you more. You can do this by comparing the overall borrowing costs of your loans. Usually, people assume that interest is the only expense that they incur on a debt, which is absolutely false.

In fact, most lenders charge a loan set-up fee which is usually between 5 to 7 percent of the total loan amount. So, if you are borrowing a loan for £5,000 then your set-up fee could be as much as £250 to £350. This amount along with the interest and other costs is then converted into percentage and distributed throughout the borrowing period. These borrowing costs are collectively referred to as Annual Percentage Rates (APRs).

Things get further complicated as most lenders who offer small debts tend to charge variable interest rates. You may have borrowed the loan previously with this sort of arrangement, but you can resolve these previous mistakes by opting for a loan to consolidate debts. As most of our direct lenders offer loans for consolidation of debts at fixed interest rates, you can make use of it to repay your multiple small debts. Fixed interest rates and APRs make it easier to calculate your monthly expenses and by borrowing them for a longer duration, you tend to lower your monthly payments.

Should I borrow a loan during coronavirus?

During the coronavirus outbreak, the global economy has suffered a serious blow. This slowdown has resulted in two kinds of borrowers — need-based borrowers and ambitious borrowers. Need-based borrowers are the ones who wish to borrow a loan to pay for their groceries and other essential needs. After all, not everybody has the luxury of working from home and therefore are out of work due to the lockdowns. If you fall under this category, then you probably do not have a choice but to borrow a loan. Money Pig offers several unsecured short-term loans that can help address your needs.

On the other hand, we have also noticed a surge in the number of ambitious borrowers who look at this economic slowdown as an opportunity to invest in assets. This includes stocks that have crashed, real estate or cars available for sale, and more. So, if you see an opportunity right now and wish to take a calculated risk, then you could very well do that. Money Pig’s lenders would be glad to offer you the best interest rates so that you can buy your dream asset. Unless you wish to make a need-based or an ambition-driven borrowing and help boost the economy, it is not the best time to borrow a loan. Mainly because it is unknown when there would be a successful vaccine to combat this pandemic. That seems to be the only time when the global economy would recover and the unemployment rates would start to decline.

As the global economy continues to plummet, there has been a sharp rise in the unemployment rates. So, if you need a loan but are worried about how coronavirus affects your loan rate, then it’s time to stop thinking and to start acting. Money Pig brings you FCA licensed direct lenders eager to offer you the lowest interest rates in the industry. So, for a low-interest loan, Apply Now.