Getting in a financial need is normal and many people opt for budgeting loans to sort them out in the short term. In the UK, the Department for Work & Pensions (DWP) administers budgeting loans through the social fund.
Budgeting loans act as an advance loan that can help you settle your bills before your payday. You can use these loans to pay rent, cover emergency expenses and even for personal use. Budgeting loans are interest-free and are thus preferred by many. They help spread the cost of one-off expenses over a longer period.
Qualification For A Budgeting Loan
Budgeting loans are available to people who have, for at least the last 26 weeks, been entitled to an income support and/or income-based jobseeker’s allowance, employment and support allowance, pension credit or payment on account of one of them. The decision to offer a budgeting loan is arrived at by a decision maker at Jobcentre plus.
They are directed and guided by the Secretary of State office when deciding your application’s eligibility and how much you can get. The applicant’s circumstance is a common gauging meter when reviewing your application for these loans. Also, the loan decision is considered against its annual budget. If your application gets turned down or you are given a lesser amount than what you wanted, you can always ask for a review.
How Much Budgeting Loan Can I Get?
The minimum budgeting loan you can apply for is £100. The maximum loan you can get depends on several factors like marital status, family size and how much you are capable of paying back. Being single, a couple or a couple with family greatly affects the outcome of your application.
A single person is entitled to a maximum of £348. A couple can get a maximum of one and one-third times a single person’s amount – £464, while a couple with children can get two and one-third times a single person’s amount – £812. These loan limits can be revised at any time.
How Long Will My Loan Get Into My Bank Account?
You should ensure your application form is completely filled correctly, otherwise, it will be returned to you. If your application is approved by the decision maker and payment issued, the time that the loan will take to reflect into your bank account balance depends on many conditions including the bank account type.
Most importantly, giving a detailed application with all the relevant requirements that verifies your identity and eligibility will ensure your loan is processed faster; in less than a week’s time and three weeks at most. Banks will look at your loan agreements before signing sending payment instructions. Once approved, the funds will reflect in your bank account, building society or post office account in up to three days. If you experience any more delays, you should check with your bank to confirm any pending payments and the reasons for such.
The good thing about budgeting loans is that they come with no interest. It is normally repaid within a 24 month period and since they are cheaper, it is much easier to repay them without straining yourself.
Normally, the repayment period can be extended on application and this type of loan will not affect your other benefits. For quicker loans, theres a new site that’s been gaining a lot of popularity in the UK – BadCreditSite.co.uk‘s quick loans are faster than any other loan company in the UK, paying out loans in an average of just 15 minutes.