£50 to £25,000
Paid out by †
£50 - £995
Rates 278% to 1576%
3-12 month repayment
£1,000 - £25,000
Rates 4.7% to 278%
3-36 month repayment
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.
† Not all loan types and amounts are eligible for 20 minute payouts. Your chosen bank may increase the time you receive the funds.
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Credit £3,250 for 36 months | Interest (fixed at 41.16%): £2,464.57. | Total amount payable of £5,714.67.
Representative 49.9% APR. | 36 repayments of: £158.57.
Monthly repayment of £447.00.
Total repayable is £16092.00. Interest payable is £6092.00.
Fixed APR of 39.9%. Interest rate of 34.05%.
Benefit Loans: How you can qualify for the loans and the available options in the UK
Whether you retired or still working, a single meme, or a business owner, there are numerous kinds of loans available in the UK that can cater your need for funding based on your unique personal circumstances. If you are someone who is living day to day from benefits for instance, there are more than enough lending institutions in the country that will help you secure a loan to advance different financial needs and purposes.
Benefit loans for one, are some of the credit products that you can access to meet different necessities, from purchasing groceries to paying off bills that will be due in the end of the week. Whatever it is that you are looking to address, the loans will certainly be a life saver from time to time.
Qualifying for benefit loans
Benefit loans, just like other forms of loans, have their own set of eligibility requirements that you need to meet and knowing them is crucial to enjoy the best chances of getting approved. Normally, the qualifications for the type of financing are based on several factors including:
- You should be enjoying some form of benefit in no less than 6 months. Benefits that can be accepted include but are not limited to disability benefits, pensions, housing allowance, and the like.
- Your overall income should be enough to satisfy the loan’s repayments.
- The kind of benefits you are receiving will affect the kind of benefit loans that will be available to you and for how much.
- Credit rating is also an aspect that lenders may look into. Simply put, if you are an applicant who has bad credit, finding a lender who will grant your financing request might prove difficult. Nevertheless, there are still bad credit loans for people with benefits that you can consider but expect high interest rates in exchange for your special grant.
- Being employed, whether full-time or part-time is a big part in getting approved for benefit loans as it tells the lender that you are enjoying a steady source of income. However, if you have a business or any other means of generating income, then this could be a big plus in getting approved.
Why you may want to consider benefit loans
Living under benefits is definitely fantastic, but you can never always rely on them when worse comes to worst. We cannot deny the fact that emergency situations can happen anytime to anyone and will not discriminate a person regardless of race, demographics, or financial standing. And when an unexpected cost pops out, you will need to secure benefits loans to so you can have enough money in your hands to deal with them.
Benefits loans can also be used for any legal purpose which means when you need to repair that leaking roof before the rainy season arrives or pay off that utility bill that has been generating hefty arrears, the financial products will surely come in handy.
Types of benefit loans
You might be thrilled to hear that there are plenty of options that you can look into when it comes to benefit loans. Every option is unique and the best one will depend on your present needs and circumstances. Some of the options include:
1.) Guarantor loans
One of the benefit loans that you can consider especially if you don’t have a good credit rating are guarantor loans. To get approved for the kind of financing, you will need to find a suitable guarantor who will co-sign your loan agreement and shoulder the responsibility as the second payer. This means that if you are unable to keep up with your repayments, the guarantor will step in and take over them.
What you get in exchange for securing a guarantor is a competitive APR that can be less than 40%, large borrowing amounts for as much as £15,000, and flexible payment terms that can be tailored to your needs and present circumstances. While the interest rates might not look that impressive, it’s one of the best you can get if you are someone who has a poor or none-existent credit history.
2.) Online short term loans
The benefit loans are perfect for dealing with emergency situations as they are unrivalled when it comes to speed and ease of access. The financial products however, are only offered in small amounts (anywhere from £50 – £1,000) with short repayment periods that can only last a month or a bit longer depending on the lender. The loans also tend to have high interest rates so caution is advised if you want to use them multiple times.
3.) Doorstep loans
These benefit loans are also popularly known as home collected credit and they are used by many people who are living under benefits. One reason for this is because you necessarily don’t need to have a bank account to get approved as the money will be delivered to your doorsteps in cash. It’s also very convenient as not only will the loan be arranged and completed in the very confines of your own home, the payments will also be collected there as well.
4.) Logbook Loans
Logbook loans are the only secured benefit loans on this list. They are tied on your vehicle like your car, van, or truck. The amount you can take out will depend on the value of your vehicle – mostly at 50% of your car’s trade in value. The great thing about this financial product is that you can still use your car as long as you make the repayments. However, because it’s secured on your vehicle, failure to repay your debt would means repossession of that vehicle.
Final thoughts one benefit loans
If you are someone who is enjoying benefits, you ought to know that your options for benefit loans are extensive. The lenders providing them are also in abundance and you can easily find a reputable one online and make an application in its website through your computer or smart phone with relative ease.
Loanize is a licensed credit broker and not a lender.
We will never charge you for our service and the lender will not increase the rate to cover our fee to them.
We work with over 40 different lenders to bring you the very best rates from across the UK market.
Representative Example: Borrow £200.00 for 60 days. Repay in 2 payments, first payment in 30 days
Each Payment: £147.04. Total Repayment: £294.08, Interest: £94.08.
Interest p.a: 365%(fixed). Representative APR 1058%
Warning: Late repayment can cause you serious money problems. For help, go to moneyadvice.org.uk.
Do not borrow more than you can pay back as defaulting on payments can lead to serious monetary problems.
Any collateral you have against the amount may be at risk of repossession.
Finding the Right Loan for You
There are many kinds of loans that you can get while using a guarantor. We have divided our site to focus on specific kinds to make it far easier for you to make sure you are getting the finance plan you are looking for.
If you are looking for something specific then check to see if our sub-sites cover what your after. If they don’t just get in contact with us and we will definitely be able to help.
5 most recent personal loan reviews
Review of Ikano Bank
Honest, realistic and genuine, I can't say anymore than that. I had problems with credit in my past that were cleared but unfortunately my credit score was very poor but thankfully Ikano loans gave me a chance to rebuild that. High rates, but that's expected when getting a loan with such bad credit. Thanks again for your support.
Review posted by Peter Harrow, Thornbury
Ease Of Use
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Review of Money Guru
Excellent communication and a very quick and easy process. Authorisation telephone call was conducted by a friendly and polite lady who explained everything clearly. Would highly recommend this company.
Review posted by Melanie Steele
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Review of Satsuma
The service was simply amazing. I have never taken loans service seriously, my view point has now changed. I needed the money for flight tickets to attend a funeral and I could have not been dealt with in such an amazing manner. The interest rate was also better than I expected. Certainly will be paying the money back early as this was really an emergency and a life saver.
Review posted by Wayne Crouch, Plymouth
Ease Of Use
Value For Money