The coronavirus pandemic has bought the world to its knees. The economy in most parts of the world is in shambles due to nation-wide lockdowns. The scare of the virus itself is enough to make people stay confined indoors. Businesses all over the world have taken a serious hit and the ones that are able to function through the internet are the only ones still getting some business. There is no doubt that people from various walks of life have been seriously affected by this situation and are very low on money. Such situations have forced a lot of people to take loans to make ends meet. In Canada, where people are no stranger to loans, the dependency on loans has increased a lot. People have a choice to select from various forms of loans, though there is a favorite. According to research, online payday loans are the people’s favorite in Canada. Let’s have a detailed discussion to see why.
The pandemic forced almost all nations to announce a national lockdown which meant that banks too had to remain shut. Most Canadian Banks do not have a very good online system for the loan processes. Since the time called for social distancing and remaining indoors, banks and orthodox companies who did not have efficient online systems were not able to provide any form of monetary aid. An expert economist confirmed that saw a huge increase in loan applications due to their efficient online loan processing system. The online process is so fast that it takes only 5 minutes to fill the online application and the money is transferred to the borrower’s account within 24 hours. Also, these websites function 24*7, which means that a person in need would be able to receive financial aid at any time of the day.
The rejection rate is a huge problem that loan applicants are facing during the pandemic. Since the lockdown started a lot of people have not been able to pay their dues on time which has resulted in the deterioration of their credit scores. Since banks and orthodox companies hardly ever accept loans applications from people who have a low credit score, they had nowhere else to go except to companies that provide online payday loans. Such companies work with private lenders who simply choose not to look at the person’s credit history. This produces a huge possibility of acceptance of the loan and decreases the rejection rate directly. In such dire times, online payday loans have proved to be a very effective backup system for the people of Canada.
Taking a loan has never been easy especially in times like this pandemic where people are low on resources. Taking a loan would generally mean that the person would have to submit some form of mortgage to the company in return for the loan. Taking a that is still followed by banks and traditional loaning agencies. Asking for a mortgage in such testing times is certainly not a customer-friendly initiative. Thankfully the new protocols set by online payday loans do not require the borrower to submit any type of mortgage. They believe that asking for a person’s assets when he or she is already burdened is against the morals of the company. Taking a loan should provide relief to the people and not put them under extra stress.
Even before the pandemic people were not very happy with the way most companies were treating them on the basis of their credit history. Loan applicants used to witness all forms of prejudice by banks and orthodox institutions. People who cleared the bar of credit score for a loan but had a relatively low score were imposed with a higher rate of interest than normal while the people who had a high credit score were given a lower rate of interest. This sparked a lot of outrage among the citizens of Canada who were already experiencing cash shortages due to the effects of the pandemic on the economy. People naturally turned towards payday loans for their financial needs as they showed no discrimination on the basis of credit history. All the applicants were given the same rate of interest and were not treated impartially. Even the people who had high credit scores were given the same rate of interest.
Every loaning institution is there to make profits as it is necessary to keep things going in order. No company can stay functional for very long without making a decent amount of profit. The problem arises when in an emergency and are turned down simply because the profit in their case would not be very substantial. Most loaning agencies followed this malpractice even during the time of the pandemic, except for companies that provide online payday loans. Such companies do not set the bar very high for their ‘acceptable loaning amounts’. People could very easily apply for loans for as low as $150 to cover up their costs. These companies understand that during the pandemic every penny counts and even the smallest amount of monetary aid could help people get out of very tight spots.
The coronavirus pandemic is a testing time for everyone across the globe. In a time when cash is in shortage for most people, loaning agencies are the support pillars for them. Being able to provide a quick and fair loan in an emergency to people is the key to saving the economy and also to keep the lifestyle of the citizens in balance. Online payday loans have proved themselves to be the ultimate form of financial aid during this crisis. The aforementioned points all prove and give enough reasons for people to declare online payday loans their favorite during these past few months.