You may need to take out a loan if you’re disabled or if you’re applying for disability benefits. The good news is that lenders are prohibited from treating you unfairly simply because you get public assistance; the Disability Rights Act protects and advances the rights of those with disabilities in Pakistan.
Unfortunately, some people with disabilities may find it difficult to qualify for the loan based only on their income and credit history. Even worse, there are situations where obtaining a loan may affect your eligibility for benefits.
We’ll examine your alternatives and any potential effects they may have on your disability compensation. You’ll be able to decide what’s ideal for your circumstances in this way.
A Disability Loan: What Is It?
An official disability loan does not exist. Usually, a range of loans and circumstances are referred to as “disability loans.” Some use a disability loan to cover living expenses and hold out until their application for disability payments is approved. Others may utilize a disability loan to
buy mobility scooters or wheelchair ramps, for example.
However, some others define a disability loan as any loan taken out for whatever reason while
receiving disability benefits.
Disability Loan Types
Depending on your definition, any kind of loan can qualify as a disability loan. If a person is incapacitated, they can apply for the following kinds of loans:
- Personal loan. These can be small or substantial, unsecured (not linked to any asset the bank can seize if you default on the loan) or secured (backed by an asset like a car or bank account). Personal loans are available for nearly every kind of need.
- Mortgage loan: People with disabilities can often obtain special programs to assist them in purchasing a home. For instance, the financing fee on a VA loan may be waived for veterans who are handicapped as a result of injuries sustained during their service.
- Auto loan. Special auto loans are available from certain lenders, to purchase automobiles that have been modified for those with impairments.
Benefits & Drawbacks of Disability Loans
Consider all the options before obtaining a disability loan, including advantages and disadvantages.
Advantages
- Possibility of applying and getting approved for the loan online; potential for credit building with timely payments
- Speedy delivery of funds
- In some circumstances, might be possible to locate specific, more inexpensive disability loans
- Able to maintain your standard of living while waiting for a disability claim decision
Cons
- Maybe better off going with a different route.
- If you make little or nothing, you might not be eligible.
- You can be given a high-interest loan if your income isn’t steady.
- May experience repercussions if you don’t pay back your loan
How to Apply for a Disability Loan
The process of applying for a loan won’t be any different for you if you already receive disability benefits. Here’s how it will operate:
- Look up rates: Most lenders will not harm your credit score if you examine your rate and loan alternatives with them. This can also tell you how probable it is that the loan will be authorized. It’s crucial to compare lenders if you have a disability because some may have stricter minimum income criteria than others.
- Make a loan application: Once you’ve determined which loan option best suits your needs, proceed to fill out an online or in-person loan application.
- Receive your funds: Your lender may determine that you receive the money via check or direct deposit.
- Pay back the credit. Having autopay set up is a fantastic idea. In this manner, you won’t need to remind yourself to make the payments every month.
Who Qualifies for a Disability Loan?
There are multiple elements that determine your eligibility for a disability loan:
- Disability loan kind: Different restrictions apply to personal loans, mortgages, vehicle loans, and other loan kinds that disabled persons may require.
- Unique loan schemes: Only eligible people with disabilities can apply for several unique, less expensive lending choices. Each program has different details. Find out what choices are available in your region.
- Your creditor: Every lender establishes different lending requirements. Most collaborate with the general, yet certain lenders can have a focus on serving the needs of the disabled. Lenders will evaluate you based on the same criteria as everyone else, unless you’re applying through a special loan program. This encompasses elements such as your:
- Credit rating
- Monthly earnings
- Bills and debt payments every month
- Co-borrower or co-signer requirements if you’re applying for a secured loan and providing a single type or quantity of collateral
Conclusion
Financing options for people with disabilities can provide essential support, but it’s crucial to understand how they work and the potential impact on your financial situation. In Pakistan, JS Bank offers inclusive financing solutions such as the JS Naya Aghaaz program, which is specifically designed to empower individuals with disabilities. With accessible terms and a focus on improving the quality of life for people with disabilities.