Loans For Beneficiaries NZ

If you are a beneficiary and have a financial need, you may be able to borrow money. This type of loan is called a benefit loan.

These loans are available for people who receive benefits from the government, such as Disability Allowance, Jobseeker Support, Sole Parent Support, New Zealand Superannuation, or Working for Families.

Payday Loans

Loans for beneficiaries nz are a great way to access quick cash when you need it most. They can be used for medical expenses, car repairs, or even moving house.

Beneficiaries are often struggling to pay their bills and keep up with their day-to-day living costs. The last thing they need is to be borrowing money that they cannot afford to repay.

Unfortunately, not many lenders are willing to lend to beneficiaries because of the risk that they might not be repaid. This means that they are usually charged a high-interest rate and if repayments are not made on time, this can lead to serious debt problems.

To try and make things more affordable for people on benefits, the Government has passed a new law that limits how much they can charge interest and fees. It also limits the daily interest rate to 0.8%.

Personal Loans

If you’re a beneficiary, you may be eligible for personal loans. These can be useful for covering costs when you’re unemployed or in an emergency situation.

However, getting a loan from a bank can be a challenge. Many banks turn beneficiaries away because of their financial history and aren’t prepared to provide loans unless they’re offered at very high-interest rates.

Another option is to borrow from a credit union such as First Credit Union or NZCU Baywide. They can be a cheaper alternative to payday lenders and offer a range of more flexible loans.

You can also use independent finance brokers like Link Finance to find the best lending options for you. These companies can save you a lot of time and search for appropriate loan deals that suit your financial needs.

Car Loans

If you’re a beneficiary who’s in need of financial assistance, taking out a car loan can help you get your hands on the vehicle you want. However, it’s important to note that most banks and credit unions don’t offer these loans, so you may need to turn to a broker.

Banks are strict when it comes to personal lending and they don’t like to take on risks. This is why they’re unlikely to approve your car loan application if you have a bad credit history.

Fortunately, non-banks can offer specialised car loans for beneficiaries in New Zealand that don’t have such strict lending criteria. Some of these lenders include Harmoney, Squirrel and Lending Crowd.

You can also approach car salespeople who sell vehicles and ask them if they’d be willing to fund your car loan with a third-party lender. However, this can be costly and often involves paying a lender introduction fee. Many people prefer to shop around and secure their car finance before they even visit a car dealership.

Secured Loans

Often, people who receive benefits like Disability Allowance, Jobseeker Support, New Zealand Superannuation, Sole Parent Support, Unsupported Child’s Benefit, or Working for Families find themselves in a precarious position financially. This can make it tough to secure a short-term loan, even one that’s affordable.

While beneficiaries aren’t typically considered borrowers by most lenders, it’s possible to procure loans at reasonable rates with the help of independent finance brokers. Brokers like Link Finance search on your behalf to provide you with suitable options.

In addition to offering unsecured personal loans for just about anything, they also provide secured loans with a car as security. The vehicle provides a greater degree of certainty for the lender, which helps them to offer more competitive interest rates. This can be particularly useful if you’re on a low income and need to borrow large amounts of money. You can use these to buy a new vehicle or to move house.

Leave a Reply