A difficult financial situation can happen to anyone and even become a chronic problem. In this case, some people can count on state aid in the form of various types of benefits and benefits. Unfortunately, even if a person is entitled to such a benefit, they cannot expect high amounts and often have to use external sources of funding. In such a situation, however, the bank loan is unrealistic and the client who is living on benefits and other benefits is simply unreliable. Usually, the choice is a family loan, payday loan or installment loan. What amounts can he count on in such cases?
I take social benefits – can I get a loan?
It should start with the fact that all non-bank companies include all benefits, grants and benefits as a source of income. In most cases, it does not matter from which source this income is obtained, provided it is of course legal and can be documented if necessary. After all, most lenders providing payday loans do not require certification and, even if, a bank statement is all you need. However, one should take into account that the amount and type of income received should be entered in the application, because the loan company must have the data necessary to calculate creditworthiness and make a decision on granting a loan.
What amounts can I get from benefits per month?
Let us consider several cases when a citizen can receive financial assistance from the state and calculate the amount of support that can be counted on in the most (but one should say “least”) favorable circumstances.
First, let’s deal with family benefits and supplements to these benefits. In 2018, family benefits, depending on the age of the child, can be received in three amounts: 95, 124 and 135 USD. He is entitled to the child’s parents or guardians whose income per person in the household does not exceed $ 674 or 764 if the child is moderately or severely disabled. If this threshold is exceeded, the allowance is granted less the amount of the exceedance. What are the current amounts of benefits?
- 193 dollars, if the child is brought up by a single mother or a single father;
- 95 dollars, if the child is brought up in a large family (three or more children);
- 400 USD due to childcare on parental leave;
- $ 90-110 for education and rehabilitation of a disabled child;
- 69-113 dollars, if the child is studying outside the place of residence.
In addition, benefits also come in other forms, including:
- permanent social benefit in the maximum amount of $ 604 for a person unable to work, whose income per person in the family does not exceed $ 514;
- unemployment benefit in the amount of $ 664 – 997 (depending on the length of service), if the person applying for the benefit worked for at least one year during the 18 months preceding registration with the Labor Office;
- 500+ benefit due for each second and subsequent child, or also for the first, if the income threshold per family member is not exceeded.
What amounts can you count on if you are living on benefits?
A person living on benefits, e.g. for the unemployed, and in addition having children, can count on income even exceeding the national minimum threshold. We have already established that the lack of permanent employment does not have to result in a refusal to grant funding. However, this will not always mean that you can count on the maximum amounts. In this case, the banks are guided by the so-called T recommendation, which says that one consumer loan installment may not exceed 50% of the average salary. The amount of income at the national minimum level would therefore allow for obtaining a loan of several thousand dollars to be repaid at least in a year.
Non-bank companies, however, have less restrictive guidelines, and each of them has its own individual guidelines for calculating creditworthiness, which they do not share publicly. Most often, however, if a given company provides a minimum amount of monthly income, it exchanges 500 or 600 dollars.
Of course, when you get income from benefits in a lower amount, you have to reckon with the fact that the loan amount will be proportionally lower. In the best situation are those for whom benefits are only an addition to a fixed monthly salary – they can even count on the maximum amounts offered by non-bank companies: $ 15,000 at Hapi Pożyczki or Provident, and even $ 20,000 at Tonga.
As for payday loans, it should be remembered that the amount received may not be as high. First of all, it requires more creditworthiness, because it also puts a much greater burden on the household budget than an installment loan. Nevertheless, no payday loan company does not rule out the possibility of getting a loan, even if you are only living on benefits. Even such large brands as Tonga, Livus, True SMS or BorrowUp apply to this.
Income is not the most important thing
When applying for a loan, one should also take into account that the non-bank institution pays great attention not only to the amount of income, but also to other criteria: credit history, debt, other credit obligations. Of course, there will be companies that grant loans without a BIK or loans for those in debt, but nevertheless the most important thing for borrowers is to maintain liquidity and be reasonable, especially when you have low income.