We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Written by
Jackie Lam
Edited by
Aylea Wilkins
Aylea Wilkins has been at Bankrate since 2019, editing content in student, personal and home equity loans and auto, home and life insurance before taking on editing content in a variety of other categories. She has nearly a decade of editorial experience with a primary focus on helping people confidently make financial and purchasing decisions by providing clear and unbiased information.
Bankrate logoAt Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money .
Bankrate logoFounded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money.
Bankrate logoBankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
Bankrate logoYou have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
The coronavirus pandemic continues, and despite unemployment rates reaching record lows in some states, many people still face financial distress. In September 2022, the U.S. unemployment rate was 3.5 percent, compared to 4.8 percent in September 2021 and a pandemic-era high of 14.8 percent in April 2020.
During the early stages of the pandemic, some financial institutions developed coronavirus hardship loans to assist those struggling to pay their expenses. Many have since done away with these loan products, but personal loans are still an option.
Coronavirus hardship loans provided much-needed financial relief if you lost all or part of your income due to the pandemic. While there were no uniform requirements for coronavirus hardship loans, they typically had the same features as you’ll find with traditional personal loans:
Like other types of personal loans, coronavirus hardship loans were used for nearly any purpose. These loan products look different now, though. They are advertised as personal loans instead of loan products for consumers impacted by COVID-19.
Still, you can typically use the loan proceeds the same way you might use an emergency loan. That includes living expenses such as rent, groceries and gas for your car. The loans can also cover costs such as medical or utility bills and education expenses. Some consumers turn to personal loans to make costly car or home repairs.
Because a coronavirus hardship loan was a type of personal loan, many of the same rules and features apply to both. They’re both installment loans that require you to repay the money you borrow and any applicable interest within an agreed-upon time frame.
Here’s more on the similarities and differences between coronavirus hardship loans and traditional personal loans:
While both have great flexibility on how you use the money, some restrictions exist. Some lenders won’t allow you to use a personal loan for business purposes or to fund higher education.
Since they were meant for people in need, hardship loans charge low or even 0 interest for qualified borrowers. Traditional loans have varying interest rates that typically range from about 10 percent up to 32 percent, depending on your financial history.
A traditional personal loan may often provide as much as $40,000, and some lenders loan prime borrowers up to $100,000. Hardship loans usually offered up to $5,000, making them less useful for big-ticket expenses. The COVID hardship loans were intended to be small bridge-style loans meant to help people get back on their feet or keep up with bills — like covering medical expenses or paying off credit card payments. That level of support might be insufficient for those with longer-term debt or financial struggles.
The terms for a traditional loan will likely be longer than those of a hardship loan. Traditional loans offer several term options lasting anywhere from one to seven years. Hardship loans usually give one to three years for repayment, and some lenders only offer one-year loan terms.
In most cases, hardship loans had more favorable interest rates than personal loans. Hardship loans are designed for people already in short-term financial trouble.
Hardship loans may have a payment deferral period, while traditional loans usually will not. Some lenders allowed up to 90 days when you didn’t have to make loan payments. Deferments are possible with personal loans if you communicate with your lender and provide documentation of your circumstances, but this is less common.
Many credit unions, some banks and online lenders provided coronavirus hardship loans. However, personal loans are now the recommended solution for individuals facing financial hardship.
You can generally apply for a personal loan either online or by phone. If you’re applying through a credit union, you’ll need to become a member first before you can be considered for funding.
Once you apply, the lender will review your application, income, credit and ability to repay the loan. If you’re approved, you can expect to receive funds quickly, within two to three days in many cases.
While the eligibility criteria and application process depend on the lender, here’s what you need to know about applying for a personal loan:
The Federal Bureau of Investigation (FBI) has reportedly seen increased scams during the coronavirus pandemic. Ensure you are not giving out personal or banking information to an unknown source. Most financial institutions will not ask for credit card information over the phone. If you are unsure about the identity of someone contacting you, contact your lender directly to verify.
To get a hardship loan, research the loan amounts, interest rates and terms available from multiple lenders. If you’re interested in joining a credit union and exploring affordable personal loan options, use the National Credit Union Administration’s Credit Union Locator tool to find one near you.
Coronavirus hardship loans offer competitive interest rates compared to other loan products. Some lenders even offer rates as low as 0 percent APR for qualified borrowers.
Borrowing thresholds differ between lenders, but hardship loans typically offer low-dollar amounts of about $5,000 or less. How much you’re approved to borrow also depends on your creditworthiness.
Applicants whose credit history demonstrates solid financial habits and positive borrowing behavior, like on-time payments and no defaults or delinquencies, qualify for a hardship loan. If you have a poor credit history, you may still be eligible for a hardship loan as some lenders will check your bank account history instead of your credit score. If you’re applying for a coronavirus hardship loan through a credit union, you’ll need to be a member of the institution.
