On Benefits? Need A Loan? Apply from Direct Lenders Today!
If you are receiving benefits from the government, chances are that you have a low-income job, have no job at all, or are in the special needs category.
Are you in a financial fix, and need some help? Getting a loan while on benefits is still quite possible. Although it’s easier to land a loan when you’ve got no job, it’s still possible to get a loan if you are unemployed, but enjoy benefits. You just need to know where to look. This is where credit brokers like PaydayLoansUK come in.
PaydayLoansUK will connect you to lenders that can give you loans, even while on benefits.
What Benefits Are Classed As Income?
The specific benefits you currently receive can positively or adversely affect your chances of landing a loan. While some lenders are more inclined to provide loans to people who claim long-term benefits, others are likelier to consider a broader range of benefits.
Some benefits are considered a regular form of income. Therefore, you still have a good chance of getting a loan if you claim these benefits. Our partner lenders consider the following benefits as a regular source of income:
- Support and Employment Allowance
- Disability Living Allowance
- Working Tax Credit
- Child Tax Credit
- Child Benefit
- Incapacity Benefit
- Fostering Allowance
- Industrial Injuries Disablement Benefit
The listed benefits above are considered an income source. Benefits like housing benefits, pension credits, income support, or job seekers' allowance are not regarded as income by lenders. This is rather generic, and there might be slight variations from lender to lender.
How to Get Loans for People on Benefits from Direct Lenders?
Even though it can be tough to get a loan when you are unemployed, it’s still quite possible. Getting a lender gets even easier if you are applying for the loan via a credit broker like PaydayLoansUK. Here’s how to apply for one through us:
Enter relevant details on the application form
Fill out the application form and provide us with your biodata information including name, contact information, date of birth, and other finer details like the required loan amount, and repayment term that’s most comfortable for you. You may also submit your income statement and proof of address documents to support your application.
Quick approval
We will match you with lenders based on your submission. The chances of getting approved for a loan are higher this way. Approval should take no more than three minutes on submitting the application form and other relevant documentation, after which the lender sends you a no-obligation quote containing the approved loan amount, loan term, and other details about the loan.
Review offers
Review the offers from different lenders and choose the one that best fits what you need. Sign the quote accordingly. This can be done online using an online or digital signer.
Get funded
Once you are done with the application, your loan request is approved and the quote signed, be rest assured the loan is on its way. Although this differs from lender to lender, you should typically receive it in a few minutes or the following hour, at most.
Want to Get a Loan?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
What Are the Acceptance Criteria for Benefit Loans?
Having a regular source of income isn’t all that qualifies you for a loan. You must meet some other eligibility requirements. You may be denied a loan if you fail to meet these requirements, even if you have a consistent income source. The requirements include:
- You must be at least 18 years old. This is the legal age to get a loan with any lender.
- You should be living in the UK to be qualified for the loan.
- It is not enough to live in the UK. You must have a UK bank account to receive the loan.
How Soon Can I Get the Loans on Benefits?
Are you wondering if the loan will delay getting to you after it has been approved? The direct lenders that you can be connected with make quick decisions on loan requests. Once your loan is approved, your loan should get to you the same day, even within a few minutes.
Getting a loan is easy
Apply NowIs It Safe and Secure to Get the Loans for Benefits Online?
Yes, it is safe and secure to get loans for benefits online. When you apply for loans for benefits, any information you provide is well protected. This information is only made available to potential lenders. No one has access to the information except the lenders.
Whether the loan requests get approved or not, PaydayLoansUK will not store your information for personal use in any situation. Be rest assured. Our goal is to provide you with the best services by linking you up to the best lender. Your private information is secure.
The chances of getting scammed are also minimal since our panel of lenders was carefully selected and vetted. The activities of these lenders are also regulated by the Financial Conduct Authority (FCA), the regulatory body for all lending activities in the UK.
What Are the Alternatives to Benefit Loans?
A short-term loan might not be the best response to a financial fix for someone on benefit. It is ideal to consider other options too.
You may consider going for a government budgeting loan. Those who have been receiving benefits for at least 6 months are qualified for the loan. If approved for this loan, you won't have to pay interest when repaying.
Another option is budgeting advances. This is open to people on Universal Credit and can clear impromptu one-off expenses that might come up. The repayment term for the advances is automatic. It is removed from the future Universal Credit installments.
How Does Payday Loans UK Compare?
 | Why Use Us? | |
|---|---|---|
| What is the maximum amount I can borrow? | Up to £5000 | Instant approval |
| Will I be considered if I have bad credit? | Yes | Bad Credit Considered |
| Interest rates (variable) | 49.7% | Zero paperwork |
| Loan repayment terms | 1-36 months | Flexible repayment |
| Will I be credit checked? | Yes | Will perform credit checks as for financial regulations |
| How do I apply? | Apply online | Simple application form |
FAQs
What Does It Mean When Someone Is on Benefits?
Benefits are available to people with low or no income and special needs. This benefit can be beneficial to people with low or no income, pregnant women, mothers, sick or disabled, and those bereaved.
What Are the Qualifying Criteria for Benefit Loans?
Some criteria need to be met before applying for a benefit loan. To begin with, you must be at least 18 years old. You must also be living in the UK, have a government-issued ID, and have a valid checking account.
How Much Can I Get?
Here at PaydayLoansUK, you can send in your application to borrow between £50 and £5000. Vet your capability to return the loan and the financial relief you need to choose the specific amount of money you can get.
Do you Consider Those with Bad Credit?
Yes. Having bad credit does not bar you from getting a benefit loan. You can apply for a loan with bad credit.
Does Disability Count As Income for Loan?
This is being replaced by Personal Independence Payment for people of age 16+. People benefiting from this can qualify for benefit loans, as many lenders see these benefits as a source of income in the first place.
Do I Need A Guarantor to Apply for Loans on Benefits?
This isn’t cast in stone and would generally depend on the lender, the amount of money to be borrowed, and the type of benefit you receive. While some lenders require you to bring a guarantor, some don’t.
