Employment insurance is a federal benefit that ensures you have a source of income if your job is terminated for reasons outside your control. That includes seasonal changes in available work, injuries, company closings, and the need to care for a child or spouse who is seriously ill.
While receiving this benefit, you may find yourself with the need for cash in between the disbursements. Fortunately, it is possible to obtain an employment insurance loan and get the money you need right now. Here are some basics that you should know.
Will All Lenders Work With Me?
Lenders determine what forms of income they will consider before extending a loan. The fact is that some of them will not consider your employment insurance benefits as eligible income. Fortunately, others will have no problem accepting this type of income when evaluating your application.
The task before you is to determine what the lender does consider eligible income sources. Many lenders make it a point to posts lists of income sources they accept on their websites. You may also find a list included as part of the application. By focusing your energies on lenders who are fine with your source of income, the odds of being approved are higher.
How Long Does it Take For My Application to Be Considered?
The amount of time needed to process applications varies from one lender to the next. Today, there are many lenders who offer the ability to submit applications online. It’s not unusual for those lenders to review and provide a response within one to two business days. Once you have a positive response, it’s a matter of supplying any documents required, accepting the loan offer, and waiting for the money to arrive.
Do I Have to Pay the Loan Back Next Month?
While some loans are structured for repayment in a matter of weeks, that’s not always the case. You can find lenders who extend repayment terms that vary from six months to five years. Take a good look at your budget and identify the amount you can comfortably repay each month. That will help you determine the loan duration and ensure the payments are made on time.
Is the Money Deposited Directly into My Account?
The days of waiting for the lender to make out a cheque and send it through the post are long gone. Assuming you’re approved and agree to the loan terms and conditions, the money can be deposited directly into your bank account. Typically, this process may take one to two business days after all the loan documents are completed. Once you have the funds in your account, feel free to use them in any way that you like.
How Will I Make the Loan Payments?
Remember the bank account information that you provided? It’s good for more than receiving the loan funds. Many lenders are happy to set up automatic withdrawals to ensure each loan payment is made on time. You can schedule that date so the withdrawal takes place a few days after your employment insurance benefits post to the bank account.
Keep in mind that this type of arrangement does not prevent you from making extra payments when and as possible. Many lenders offer online access to the account details. You can use that access to make the extra payment electronically and eventually settle the obligation a little sooner.
If you’re receiving employment insurance payments, don’t assume that obtaining a loan or coronavirus loan is off the table. There are lenders who are willing to work with you, assuming you meet all of their basic qualifications. Choose wisely and the money could be in your hands in a matter of days.