Can a Beneficiary Get a Short Term Loan?

Are you a beneficiary who needs a short-term loan? You don’t need to be employed in order to access a loan. Beneficiaries may still be eligible for short-term loans as long as they can demonstrate that they receive a regular form of income (which a benefit is).

To apply for a short-term loan you need to be over 18 years old, be able to produce bank statements for the past three months, provide suitable identification and two letters or bills that verify your current home address.

 

 

How to Apply

The great thing about short-term loans is that the approval process is based on your ability to pay the loan back over a short period. The income used to pay it back can come from a variety of sources, ranging from a job to a superannuation fund.

This means that regardless of whether you’re unemployed, have a poor credit history or rely on income from a job, as long as you can meet your current financial obligations and have a regular source of income, you may be able to access a short-term loan.

 

Are Short Term Loans Risky?

Short-term loans tend to receive a lot of negative sentiment but this is primarily based on misconceptions about how they work. As lenders, we are legally obligated to ensure the credit we offer is suitable for the borrower’s financial and personal circumstances.

They exist to allow people to address immediate financial issues like medical expenses, unexpected utility bills, repair work and special occasions. The short-term nature of these loans makes them low-risk as they have a short lifespan and are not subject to market forces in the same way that long-term loans are.

While annualised interest rates are certainly high when compared to other loans, remember that the dollar amount of interest paid is actually going to be low because these loans are paid within a few weeks. As a result, short-term loans can in some circumstances actually be a cheaper form of borrowing.

 

When Should You Get A Short Term Loan?

While short-term loans are fairly easy to access, it’s not something you should rush into or use for unnecessary consumption. These loans are more appropriate for use during unforeseen circumstances where you need money you simply can’t access.

Make sure you explore alternative options, such as a partial payment for a bill that is due or a cut in spending elsewhere. Before you sign any documents, you should take the time to ensure you understand the terms and conditions of your loan and the risks associated with defaulting on a payment.

Loans come in a variety of forms, so consider all the options available. For example, you can use assets as security to reduce the cost of the loan. However, this means those assets can be repossessed if you become unable to make payments. If you prefer, you can minimise risk with an unsecured loan, meaning your possessions will be safe regardless of what happens.

 

Need a Short Term?

If you’re interested in getting a short-term loan from $100 to $1000, get in touch with our team today or apply for a loan online. Call us on 0800 243 783, make an enquiry online or visit one of our branches in person for more information.

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Are you a beneficiary who needs a short-term loan? You don’t need to be employed in order to access a loan. Beneficiaries may still be eligible for short-term loans as long as they can demonstrate that they receive a regular form of income (which a benefit is).

To apply for a short-term loan you need to be over 18 years old, be able to produce bank statements for the past three months, provide suitable identification and two letters or bills that verify your current home address.

Visit us at any of our branches:

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Chequers Finance Hamilton

Caro House
137 Alexandra Street
Hamilton
Phone: 07 838 2939

Chequers Finance Henderson

334 Great North Road
Henderson
Auckland
Phone: 09 836 6201

Chequers Finance Papakura

155 Great South Road
Papakura
Auckland
Phone: 09 299 7883

Chequers Finance Otahuhu

13 Criterion Street
Otahuhu
Auckland
Ph: (09) 276 4384