Applications of new borrowers are temporarily not accepted by the Payday lenders Ohio due to COVID-19 pandemic condition
Payday loan providers have suspended all the new applications and also put very strict lending standards. This is because of the condition going on due to COVID-19 in the whole world especially in the USA, people will not be able to repay their Payday loan on time as the lockdown situation is there and peeps don’t do any work.
Payday lenders due to COVID-19
Many lenders in the USA said that this might be the situation when you can get some customers but this would be the most unsafe step by reckoning the condition of people in the United States. As per the reports, high rate lenders are not issuing new loan approvals due to which people are more concerned about because now there are fewer chances to get instant money but they must understand that borrowing high-cost loans in such time can open doors for more serious problems.
Lenders who provided the guarantee of approval loans, also cancel the new loans temporarily by considering the increasing epidemic condition of coronavirus. They just want to give attention to existing borrowers because among them most of the customers need endurance as there were already so many changes occur in the financial situations.
However, still, some lenders will accept applications of loans but only in an extreme case of an emergency. Such as health workers, social workers and those who produce food or sale, basically who are the key employees as per the government’s statement. But for them also, doorstep lending is not working now especially in affected areas so a lender can become supportive by providing virtual services.
As a lender who cares for his customers, there are various things issued that you may do for your borrowers
The main point all lenders must focus on is to provide clear information about the loan in the current COVID-19 epidemic so that customers easily get to know what to do next.
Here’re some points which as a lender you should take care about:
- The basic benchmark should be clear about the application: Lenders should visit their websites and check the guidance that they have mentioned. If that would be clear then the call queries will become less and it would be easier for you to handle your clients.
- No hidden details, only clear communication: If you’ll show your every step as full transparency to your borrowers then it would be simple for both of you because usually, customers want to know that where their process is reached. Not only this, as a customer many questions arise in this outbreak of corona virus such as what would be the impact of this situation on their process, who will clear their queries and many more. So, to take care of your clients, your process should be transparent.
- Proffer them an online option: There are various areas in the US that are affected by a coronavirus, due to which people can’t go out for their paperwork for the loans so make an online option for them so that whole procedure can be done by sitting at the home. And provide them extra support by also clear their queries online.
- Make some different rules, for this epidemic: By considering the current situation, there are many people who aren’t able to work full time or not getting salaries on time. So, you must create some policies to reckon their conditions in mind so that it would be easy for you and them also.
Working hand in hand may give some financial support to fight with this pandemic situation. But still, this would be the riskier loan. No one knows till what this issue of COVID-19 will be settled so to borrow such high-interest loan whose APR is more than 300% on an average, can make your condition worsen. Anyhow, people may get a sigh of relief to know that there are still few utility agencies, landlords and lenders who can try to be a bit adjustable which can help Americans in terms of payment. Let’s see how much aid people can get through this.