There are very few places across the United States which doesn’t offer you structured settlement loans. These are a type of quick loans. Structured settlements are opted by the general public, generally in order to get compensations from individuals or companies after a lawsuit is over. One would be paid this compensation over a decided period of time, and in regular installments. These installments are mostly life insurance agreements by nature, which are often used as collateral to obtain loans. The application process for a structured settlement loan is quicker and easier compared to normal financial aids.
The Prerequisites of availing a settlement loan
Any kind of loan must be applied only after you have had an idea about is nature, procedure and benefits. Same goes with settlement loans as well. Understanding the kind of structured settlement one is opting for is very crucial. At times structured settlement would come with certain specific clauses like taking out a financial loan or leverage mortgaging these documents is not allowed. Applying for such a loan would be a mistake on your part. If no such restrictions come with a settlement loan you can obviously apply for it. However, in case the settlement has been done by the intervention of the court, one would need to take the court’s permission before availing the finance.
In case of a personal injury lawsuit, the settlement must have reached an out of court settlement and thus the permission of the insurer as well as the defendants will also be necessary. Once it has been ensured that there is no legal snag, you can immediately apply for the loan and let the procedure commence.
Applying for a settlement loan
Once all the document you have produced have been scrutinized and evaluated by the bank or the financial institution you have opted for, your loan application will be accepted. In normal cases, the time taken to get the loan processed is 90 to 120 days. However, if you decide to sell your annuity the time taken for the loan to get processed will be much less and you can get your hands on the money in a maximum time of 45 days.
Once the loan application has been approved you would need to pay the fees. Certain deductions are made from the loan amount, like the fee and certain other charges. Some jurisdictions also deduct an income tax. The repayment of the loan amount can be made with the annuity payments.
Author Info: Content idea suggested by Mauneel Desai- a professional financial expert who loves to share his professional experience & investment tactics on his personal blog Mauneeldesai.net