Information regarding the government's benefit loans scheme

The benefit loans scheme was introduced by the government originally to help those on long-term benefits borrow money they needed to make essential house repairs or to meet other important costs. It is a fairly well-known fact that many banks and financial institutions will not consider a person claiming benefits for a bank loan. This is because their income is low. The specialist companies who do offer loans to people on benefits tend to charge large interest rates.

A budgeting loan is part of the benefit loans scheme and is an interest-free loan designed to help people pay for important items such as essential furniture, children's clothing and things to help them look for work. In order to be able to apply for this loan you must be in receipt of income support, income-based jobseekers allowance or pension credit. The loan amount ranges from between £100 and £1,500. How much you are entitled to will be influenced by your marital status, whether you have children, any other loans you have with the benefit loans scheme and your ability to repay the loan in full.

This loan can be paid into the bank account of your choice or paid with your benefit on the next date after your loan has been approved. Your loan repayments are taken straight out of your benefit before it even gets to you so make sure you are happy with the repayment figure you are given. The government usually work out your repayment amount before you sign the loan agreement to make sure you fully understand your responsibilities

United Kingdom - Excite Network Copyright ©1995 - 2020