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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
Being disabled or unemployed is hard, especially after knowing the fact that it doesn’t give you the privilege to be free from financial woes. Time and time again, you will face difficult money-related challenges that able-bodied individuals face. Unfortunately, we hear that loans are available only to those who are employed and receiving high income. So what if you’re not capable of working anymore? Or, worse, you are employed but you’re only receiving an income that is barely enough to cover your daily expenses.
Borrowing from a family member or a friend might be an option, however, it is not the best idea at all times. The good news is, there are other financial alternatives to choose from and one of which is through loans. There are loans intended for people on benefits and these are enough to help you acquire the financial support you need. But before walking through the loans for people on disability, let us first find out who is qualified for such benefit loans.
Who Are Eligible For Benefit Loans In The Uk?
When we speak about people on benefits, these are basically people who have a disability, whether psychological or physical. However, the recipients of welfare benefits are not limited to these people. in fact, a majority of the world’s population receive public assistance. These are ordinary people and families who are looking for a job or those who are currently employed with very low income. They can also be single parents, carers of disabled people, and young ones who are homeless.
Qualifying for loans on benefit sounds a little complex but in reality, it’s actually not. Most requirements are just basic and the approval rate is high enough providing that you have a good credit remark. Nevertheless, you can still acquire a loan even if you have a bad credit history. Here are the prerequisites that you need to meet:
You receive a regular income
The income may come from employment, benefits, or pension. The income is necessary because it proves your capability to repay the loan on time. When you receive welfare benefits, your chance of getting approved is higher because the lender assumes that you have the fund to return their money.
You have an active bank account
Firstly, the bank is used to verify the borrower’s identity. It is also where the money will be sent so the borrower doesn’t need to personally come to the lender’s office. In addition, this is also where the lender will get his payment by automatically debiting the loan when it’s due time.
You are old enough
The borrower should 18 years old and over; however, there are lending companies who will ask the applicant to be at least 21 years of age.These are the basic requirements that the applicant should meet to be qualified. Most of the times, there will no background check so the credit history is not an issue. However, with a good or excellent credit remark, you can bargain for lower interest rates and the chances of approval are higher. Nevertheless, there are still lenders who will accommodate people on benefits amidst their bad credit.
Loans For People On Benefits
Now you know what a benefit loan is we will now explain what some of the major factors are when applying for this type of finance and how to avoid any pitfalls.
Benefit Loans With No Fees
Our process from start to finish is free of charge at no point will we contact you asking for money! The lender also wont require any money upfront to confirm the loan. If at any point someone asks you for cash to approve a loan its normally a scam.
What If I Have Bad Credit -
Bad Credit isnt an option as a rule payday lenders are set up to cater for people with poor or adverse credit. They do expect the risk associated with poor credit that being said it may reflect in the APR you pay back to the lender.
Is The Whole Process Online
Our whole process from start to finish is based online! the lender may call to confirm your bank details as a precaution but most the time the whole transaction is processed online.
- Benefit loans are meant for people who through no fault of their own find themselves unemployed and living solely on the benefits that they are entitled to.
- These loans are an easy way for people on benefits to get fast cash when family and friends are unable to render financial help.
- Because these loans are for special people, lenders tend to offer very low-interest rates and a flexible repayment plan that fits right into their small income.
Benefit Loan FAQs
Does securing a loan have an impact on my benefits?
Taking a loan while you are on living on benefits will have no significant impact on your credit score or your regular benefits. This is further enhanced by the fact that direct lenders do not conduct credit checks when giving out this type of loan. However, your benefits may be affected if you go ahead to secure a loan from a family member or a bank that allows you to get all of the money you want in one single payment.
Can I still get a loan if I have bad credit?
Your bad credit score should not stop you from looking for means to solve your urgent financial problems. Thanks to the fierce competition in the market today, lenders are more accepting so that they can fall into the good books of prospective customers. This gives people with poor credit a chance to get the money they want from the lender that is willing to work with them. With the level of risk associated with lending to people with bad credits, lenders tend to increase APR and lending rates to compensate for the uncertainty they are getting themselves into.
How much can I borrow if I live on benefits?
This depends on the lender you choose to work with and what you need the cash advance for. However, because of your small income, lenders may not want to give you huge amounts in one payment. This is a good thing because it allows you to stay within your means while still having enough to meet your needs.
Lenders can give out as much as 1000 pounds to people living on benefits if the conditions are right. If you need to borrow a lot of money, you can try other loan formats that offer large amounts without credit checks like instalment loans. However, you will need collateral or a suitable guarantor for this loan to be granted. But we will advise that you only borrow the amount of money that you can afford to pay back.
What will happen if I default on the repayment plan?
Failure to make repayments when you are expected to do so may attract extra charges in addition to the interest you initially agreed to work with. Also, your credit score will be affected if you persistent default of the repayment schedule. But lenders are aware that these things may happen from time to time, hence they may be willing to cut you some slack if you reach out to them early enough. This is why you must only borrow money when you are sure that you have what it takes to pay it back.