Getting a loan these days is not a piece of cake anymore. The world is making more money, the authorities are making more, and the banks are making more. Despite having so much money around us, it’s hard to lend it with reasonable interest.
However, if you manage to get a loan, you will have to face misery if you fail to repay them with a higher interest rate.
But though getting a loan has become more complex and the situation has become more chaotic, there is a ray of hope at the end of the tunnel for a group of people, the postal employees.
An allotment loan for postal employees is that ray of hope. It’s a kind of loan that is particularly developed for postal employees. It serves not just postal or USPS employees but also federal and other government employees. From easily attainable payment terms to fixed interest rates, it has quite a lot of benefits attached to it. In this write-up, we will try to cover as much as possible. So, let’s dive in.
Types of Allotment Loans
As you got a basic idea about allotment loans for federal employees at the beginning of this write-up, let’s try diving a bit deeper into it.
Well, there are mainly two kinds of allotment loans out there. The first one is discretionary allotment loans. This means that the one taking the loan allows the one giving it to cut a certain amount of money from his paycheck. Another quality of this load is that it can start and finish at any time.
The second kind of allotment loan is a non-discretionary allotment loan. This kind of allotment loan where the entire system is almost the same as the discretionary allotment loans except that it can’t begin and finish at any time.
Now let’s learn about allotment loans for postal employees or USPS employees in particular.
Allotment Loans For Postal Employees or USPS Employees
Federal Credit Union is the authoritative figure that has built this system for postal employees to easily apply for and get loans. If an employee wants to apply for a loan, he or she must be a member of this union in the first place. Only after that can you apply for the loan.
However, to become a member of this union, you have to have any of the things attached to you stated below-
- You have to be a postal or USPS employee or a retiree
- Any of your family members is a USPS employee
- Persons or spouses of a USPS employee
You must fill one of these checkboxes to apply for the allotment loan.
However, as a postal employee, there are some other criteria that you have to fulfill; otherwise you won’t be able to apply for the loan, and these are.
- It’s a must for you to work in the post office for at least a year.
- You must work physically for at least 32 hours in a single week.
- You can’t go through bankruptcy.
- You need to have a minimum net take-home pay of $800.
- You must pay federal and state taxes where it’s required.
Allotment Loans of Federal Employees and Other Government Employees
Allotment loans are specially designed for government officials or employees. Just like the postal or USPS employees, federal employees are also government workers, the rules, regulations, or procedures can be more or less the same as postal employees.
However, it’s always the best option to double-check or learn about the existing rules and regulations as they may get changed or updated. So, make sure to know everything before making a move.
Benefits of High-Priority Loans for Postal Employees
As it’s a custom-built loan system, especially for postal or other government employees it does come with some special benefits with it such as-
1. Small Amount of Loans:
One of the best parts about an allotment loan is that there is no boundary when it comes to taking loans; as a result, you can take a small amount of money where it’s a couple of dollars or thousands of dollars as a loan.
2. An Allotment Loan With Bad Credit
Another best part about an allotment loan is that you can still get a loan even if you have bad credit. This is a kind of facility that we don’t see other than these sorts of loans and is nothing but amazing quality.
3. No Credit Check
When getting an allotment loan, we see that in most cases, there is no credit check required which is nothing but a great matter of making the whole procedure easier and accessible.
4. Fast and Easy Approval
Applying for an allotment loan is very easy for a government employee compared to traditional loans. Also, as this is a government-run loan-giving system, it gets approved very fast.
5. Requirements Are Simple
Yes, you read that right. The requirements are very simple and straightforward regarding applying for and getting an allotment loan. In fact, one doesn’t even need to go through a lot of unnecessary paperwork. However, you must meet the criteria that we have stated in the previous section of this write-up.
6. Short and Easy Payment Plan
Government postal employees don’t have to think of taking years to pay back the loan. Because when they sign up for the loan in the first place, they get to know about the duration of repaying. So, they have a clear idea about the time of paying back the loan.
7. Payroll Allotment System
It’s one kind of process of paying back the loan. In this process, a certain amount of money will be deducted from the employee’s salary. Which (if the employee is okay with that) is a pretty good passive way of paying back the money.
8. Freedom of Spending
In this kind of loan, a government employee doesn’t need to answer on which matter he or she will spend the money. Because they have full freedom and can spend their money how they want. But it has to be done in a legally and ethically right way.
9. Useful For Emergency Situations
Applying for and getting an allotment loan is very easy and handy for a government employee. He or she can easily borrow money whenever an emergency situation takes place.
10. Affordable and Low-Interest Rates
Another best part about allotment loans is that the interest rates are very low and affordable. In some cases, the loans are free of interest. That’s why it becomes very easy for a government employee to pay back the loan that he or she has taken.
Demerits of Allotment Loans
Though it comes with a lot of benefits with it, it does have some demerits. Let’s get to know them one by one.
- If an employee loses his/her job, he/she has to pay back the loan. One of the key reasons why lenders give loans to government employees is that they have a decent stable income that ensures they will be able to pay back the loan. But unfortunately, if they lose their job, the lender will also be in an imbalanced state like the government official.
- If an employee takes too many allotment loans in a short sphere of time, he/she may get stuck with the burden of a huge amount of debt on them.
- There are some organizations that directly deal with the employee about the loan instead of doing the same thing through the HR department. As a result, they may end up cutting whatever amount of money they wish from the employee’s paycheck or monthly salary.
Alternatives to Allotment Loans
Now that you have a pretty basic fair idea about allotment loans, what it is, their merits and demerits, etc. it’s better to know about some of the alternatives that are available in the market. Because, though an allotment loan is an easy and beneficial move, you prefer not to go with that.
Luckily, there are some alternatives in the market. There are loans like Kashable, TrueConnect, etc. that are some of the most considerable alternatives. But here we will be talking about the Kashable one only.
Kashable – Financial Wellness for Employees
Kashble is an online lender service based in New York. It provides loans to particular kinds of employees and government postal or USPS and federal employees are included in that.
However, let’s get to know about Kashbale in a bit.
1. Interest Rates:
Kashable does come with lower interest rates but they become very competitive. Also, if you wish to go with getting a loan from them, it’s a must for you to have a pretty high number of credits. This credit rate is usually in two digits and higher than the usual ones that we see traditionally.
2. Building Credit:
Kashable will be of your help if you manage to repay the loan within the given time, or you can simply pay the monthly installments. But if you fail to do that for any kind of reason, your credit score may drop.
3. Employer-Based Qualification:
Kashable gives loans to a selected number of employees and their loan-giving system isn’t available to the normal public. So, to check if you are eligible to get a loan from them or not, you will have to check their website beforehand as they have provided the necessary pieces of information there.
4. Payroll Deduction:
If you are approved by Kashable for a loan, you will get the money in your bank account within three business days. On the other hand, the repayment procedure is payroll deduction. Which means a certain amount of money will be cut from your paycheck.
So, if you’re thinking of taking a loan from Kashable, there are some things that you should know.
- Your employment history will be checked by them and it does matter.
- Kashbale loans aren’t available for military members.
- If you want to get a loan from them you must have a bank account of your own.
How To Apply For Kashbale Loans?
Applying for loans like Kashable is pretty easy as the entire system is done on the internet. All you have to do is-
- Enter your full name
- Enter your address
- Enter your email
- Enter a copy of the paystub
- Enter bank account details
That is it! That was our take on the allotment loans for postal employees with bad credit. Despite talking about this particular matter, we have also tried to enlighten you in other related fields.
This was a toilsome research-based write-up and we had to work very hard on this. We genuinely hope that you get benefitted from this write-up of ours. That’s how our hard work will pay off.
Thank you very much for being with us till the end. Wishing you all the very best.