The current pandemic has left the world in a state of disorder. We are facing a health crisis, along with an economic crisis. Millions of people have lost their jobs. Businesses are running low due to lockdown. People don’t have enough money with them to buy necessary things.
Not only common man but businessmen are also facing a lot of problems. The industries are getting shutdown. Restaurant business and food business is facing the biggest problems. The entertainment industry is facing difficulties in coping with it.
Every person is struggling as there is less cash flow. There is not enough cash in the market. The gap between rich and poor is increasing. Rich people are getting richer while the poor are getting poorer.
Everybody needs finance. The good thing is that there are loans available for personal use and business in this time of disaster. Personal loans rely on those individuals who have to struggle with the emergency medical business. Business loans are a relief for small businesses that are struggling to function at this time.
Personal Loan Options during Pandemic:
Although taking a personal loan is quite risky because of high-interest rates, various options help you get emergency cash. You can choose any favorable option from personal loans if you are in dire need of money during coronavirus.
- Borrowing for a Friend or Relative:
The best option for a personal loan is borrowing money from friends or relatives. They will not charge any interest rate from you, so this is the best option. The chances of getting this loan are quite slim as every person is struggling with money.
- Online Loan Marketplaces:
Another option to get a fast personal loan is online marketplaces. There are various banks that provide online loans instantly. You can search for money lenders as well. You can fill an application to get the loan with them.
- Bank Loan:
You can also try to get a loan from a bank. There are many banks that are still working ad providing loans. You can contact different banks and make inquiries to get the loan. Compare the rate of interest and other factors before you take the loan.
- Home Equity Loan:
In this type of loan, you can keep your house as a security to get money as a personal loan. You can only take this loan if you have your own house. It is risky because if you cannot make the payment, you will lose your house.
- Hardship Loan:
If you are working, you can take this loan. These loans are provided by the employer with whom you work. You have to pay back while you are working.
These are the personal loan options with you. You need to think clearly before you take a loan. If you are already in debt, think before getting another loan, and you will not be able to pay it back.
Business Loan Options during Pandemic:
Many business organizations have to close down due to the pandemic. There are many grant programs that are launched to help the companies revive. There are many loan options available for businesses.
- SME Working Capital Loan:
The government is providing loan s to the companies which are facing problems with working capital. SME can use this loan to bridge the working capital gap. The loan amount has been increased to $1 million. You can now apply for a loan of up to $1 million to meet the working capital requirements. The government will take up 90% of the risk. There are many banks that are providing these loans to SME.
- Temporary Bridging Loan Program:
Small businesses can also apply for this loan program. Here, they will be given a loan from working capital bridging. It is only for eligible companies. If your business is eligible, you can get up to $5 million worth loan. The rate of interest on this loan will be only 5%.
- Trade Loan:
You can also get EFS-TL. If your business has 30% local shareholders, you can apply for this type of loan. The revenue of your business should be more than $500 million. You can take this loan for trading requirements. If you don’t have money for trading, this loan is perfect for you. You can get a loan of up to $10 million. The government will take a 90% guarantee.
- Loan Insurance Scheme:
By using this scheme, you will get a short-term loan. Your business should be eligible to get this type of loan. The revenue of your company should be $100 million. The number of employees should be more than 200. You can get this loan form PFIs. It is good for your business if you need short term loans.
- Enhanced SEM Property Loan:
This loan is for all business entities. If you have a small or medium business, you can take this loan. In this loan, you will get a loan for the property. If you have a commercial property, you can take this loan. It can be an industry or a commercial property.
- Facebook Grants program:
This loan is given on Facebook. It is a worldwide program. You can get up to $100 worth grant for your business from Facebook. More than 30,000 small businesses will get this loan. They are constantly providing grants for small businesses.
- GoFundMe Grants:
It is a site where anyone can raise funds. This site is providing funds for small businesses. If you are running a small business, you can apply for this grant amidst the pandemic.
- Money Lenders:
If you don’t qualify for a business loan, you can still get the loan from local money lenders. Many private money lenders are providing business loans to SME. You can compare the factors and go with the lender who provides the best loan.
These are the personal loan and business loan options during a pandemic. You can check the options if you are in need of money. Go with the option which provides loan at a lesser rate of interest.