Government Loans for people on benefits: avoiding illegitimate lenders

Money can be quite tight if you're unemployed and receiving benefits. Government loans for people on benefits are the only viable option if you need an extra cash flow, but be aware of certain scam sites and illegitimate lenders on the internet offering government-funded cash incentives to people on benefits. You cannot receive a loan if you are unemployed. Only loan sharks will offer your finance if you don't have a job or don't earn more than a fixed amount per month (normally over £700).


Government loans for people on benefits are normally offered by broker sites who claim to be able to secure government funds and loans on your behalf, or claim to send your application to a lender. These sites won't be able to match you to a lender as you shouldn't be able to obtain a loan without employment; if a lender does accept you through these brokers, do not take out a loan. Their rates and repayments will be considerably higher than other loans and you're likely to be dealing with a loan shark. Brokers will also retain and pass your personal information on, without providing "guaranteed government loans" as they first suggested.

False Government Loans

Be aware of companies actually offering government loans for people on benefits, or an organisation stating their finance is government funded. Many of these sites are removed or shut down because they're likely to be a scam; no lender will have access to funds from the government to pass on to people on benefits.


The only provider of government loans for people on benefits is the Directgov website, or your local Job Centre. Even if a legitimate company appears out of nowhere to gives you a loan you probably won't be able to afford repayments on government-funded income, so don't apply. Crisis loans from the government are interest free and won't leave you short of cash like unregulated lenders out there. To find out more about government loans for people on benefits, go to: direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018856 .

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