I am on benefits. Can I take out a loan?

When you apply for a short-term loan, a lender will always take necessary steps to determine your repayment capacity before deciding whether to sign off on the application or not. More often than not, you need a full-time job to borrow money, but what if you are out of work and living on benefits? Emergencies can crop up anytime and they never detect your employment state before knocking at your door. Of course, you will not sit idle rather seek financial assistance. Good news is you can take out a loan, called loans for people on benefits.

Not all direct lenders provide these loans, but A One Finance considers your benefits as income and accordingly decides the disbursal limit. These loans aim at helping the:

  • Unemployed
  • Disabled
  • Retired
  • Women on maternity leaves

The minimum disbursal limit is £1,000 and the maximum varies from category to category.

Categories Maximum disbursal limit
Unemployed £5,000 but it can go up to £7,000 if you have side gigs too.
Disabled and retired £2,500 but it can go up to £5,000 if you also use your family member’s income or home based work.
Women on maternity leaves £5,000 but it can go up to £10,000 if you use income of your spouse too.

I have a bad credit score. Am I eligible for instant loans on benefits?

When you have no steady source of income, a poor credit rating can be an obstacle. Online lenders are likely to turn down your application and otherwise they will charge very high interest rate. Applying for loans on benefits with us will never let you down as we charge very competitive interest rates even if your credit rating is not stellar.

As a reliable lender, we try our best that we do not lend you money more than your affordability. If we face difficulty making a decision on basis of your income, we can schedule a face-to-face meeting with you. This facility is mainly applicable for the disabled, retired and expecting mothers. Our one of the representatives will visit your doorstep to get insight into your credit needs and cash inflows to make a quick decision.

Do loans for people on benefits come with no credit check?

You may find several direct lenders in the UK offering you loans with no credit score check process. It means they will run neither hard inquiries nor soft inquiries. Of course, a lender will always try to know your payment history to know the default risk, which is not possible without running a credit check. Loans with no credit check come with very high interest rates and you are likely to fall into a debt spiral.

On the contrary, our policy is transparent and work in favour of borrowers. A hard credit check shows up on a credit report and pulls credit scores. It can white down your chances of getting the loan approved down the line, which is why we make soft inquiries. They do not damage your credit score because they do not appear on your credit file.

Do I need a guarantor to get loans for people on benefits?

We will offer you an opportunity to apply for no guarantor loans on benefits, whether you have an impaired credit standing or not. Such loans aim at funding your unforeseen expenses. It will be doltish to impose such formalities to make the lending procedure complex. As long as you have the repayment capacity, you can get money without more ado.

However, if you want to arrange a guarantor in order to get a lower interest rate deal, we will not discourage you provided the guarantor has a good credit rating. Note that we will call upon the guarantor if you fail to pay off the debt, and this will affect the credit score of the guarantor too.

How much do loans on benefits cost me?

The cost of these loans depends on the policy of the lender and the length of the loan. We offer as affordable deals as possible depending on your financial circumstances. Before you grab a deal, we suggest that you:

  • Compare various deals
  • Check late payment fees and prepayment penalty
  • Ensure that you will make all repayments on time
  • Do not submit multiple applications within a short period

Why should I choose loans for people on benefits?

It is paramount that you apply for loans on benefits at the right time. Even though you get a low interest rate deals, loans may prove expensive. Meeting all regular expenses can be difficult when you are living on benefits, and the situation will be worse if you borrow money for trivial matters. Here are some situations when these loans are ideal:

  • Bills are overdue
  • Your benefit payment is late
  • You are sick and any other urgent expense

A One Finance provides loans for people on benefits at competitive interest rates. Borrow money today!

Why Choose Loans for People on Benefits

No more struggles to your finances! It’s time to enjoy stability.

  • Apply online loan 24x7 any time
  • Easy repayment terms for repayment
  • Secured and unsecured all loans are available
Representative example
  • Amount of Borrowing

    £25,000 over 5 Years
  • A Variable Representative of

    42.9% APR
  • Monthly Repayment Amount

    £910.73 for 60 Months

Borrowers must be UK residents and aged 18 or over. Credit limits and interest rates vary based on your individual circumstances.

Keep in mind: Late repayment can cause you serious money problems.
For help, go to moneyadviceservice.org.uk

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