If you are one of the people on benefits, chances are you have taken out a loan or are about to do so. Repaying these loans is easy, and there should be clarity about it.
However, borrowers might think of it as an exceptional loan and, hence, they consider it to have exceptional properties. As a direct lender in the industry, we will aid you in knowing the real truth.
What Are Benefits?
You can take on-benefits loans if you earn benefits from the government or other sources such as non-profit organizations. Benefits are monetary allowances offered to you if you have low income or other special conditions such as disability, unemployment, single parenthood, or others.
For a lender, the benefits are counted as income. You can use this statement to apply for a loan. Of course, that loan is going to be an on benefits loan.
There are many kinds of benefits and allowances offered by the government. You may only be entitled to some of them, and then the lenders might only accept some kinds of allowances. This is where we need to come to a point of discussion with proof of your income forming the base of borrowing.
What Are On-Benefits Loans?
As direct lenders, we provide several loans, and on benefits loans are one of them. We have designed this improved loan option only for the financially underprivileged. Although benefits loans are taken out against your benefits, they won’t be hindrances to help you get the most out of your benefits.
The On-benefits loan is a personal unsecured loan for people on benefits. Yes, you don’t have to worry about collateral issues when taking this loan out. However, you cannot choose it unless you earn benefits. It is strictly meant for people on benefits who have evidence of benefit programs they receive on paper.
Since these loans are unsecured personal loans, you can use the money for almost any purpose. There is no such boundary in the application of the money. Our borrowers prefer it highly because they reported that the on-benefit loan keeps them organized. It certainly is a great help for them.
How to Take out an On-Benefit Loan/ What Benefits Are Supported as Income?
Like other personal loans, a paperless application form takes out loans on benefits. You apply completely online, and then you share your income details. Here, the benefits program you earn will define your income status. As direct lenders, we want to find out whether or not you can repay us the money with the help of the number of benefits you earn and that too comfortably. With that, the loan is yours.
Once you reach the application form, you must fill in a few details, such as your name and general details. These are only sometimes extensive inquiries for the benefit, though. That comes later.
It would take you about a few minutes to fill up the form. Then you can send us proof of your benefit programs. We will run a check and approve you within a few minutes. You may also need to send your bank account and other financial details so we can directly send the money.
Most lenders will accept the generalized benefit programs for repayment statements. However, as we mentioned earlier, you should have a word with us if you are unsure of the eligibility regulations. Here are the benefits that are generally accepted:
- Disability Living Allowance
- Employment and Support Allowance
- Child Benefits
- Single Parent Benefits
- Pension Plans
- Universal Credit
There are many other benefits offered to people in special situations. We are not saying that we won’t accept them. We definitely can. Just let us know about it transparently, and we may help you similarly.
How to Repay an On-Benefits Loan
If you have already made smart strategies, it is easy to repay an on-benefit loan. Here are a few of them which might help you out:
Do Not Take out an Amount You Cannot Afford
You can take out a loan of this kind anytime you want, provided you share the paperwork with us. However, you must not miss out on the benefit program as the only thing that sanctions the loan. We will even ignore a bad credit score to send you the money if you can make ‘comfortable’ payments.
Use a Loan Calculator to Find out a Rate Your Benefits Can Afford
This is what you need to find out first. Using a loan calculator will help. It is because private or direct lenders like us will have more than one repayment plan for a single loan. Using this wiggle room, you might get yourself an affordable loan deal. Check all the rates mentioned in the packages. You can also choose monthly repayment plans or pay weekly loans from direct lenders, which will always be flexible for you.
Update Your Credit Score
If you want to get attractive deals from your lender, upgrading your credit score might help you the best. Besides, it will not be easy for us to offer you extra loan offers if your credit score is not upgraded. Speak to your credit card issuer for an upgrade now.
Plan Your Repayments
After we disburse the loan, it is advisable that you plan out your loan repayment in advance. You can reserve the money and keep it tagged for repayment at the beginning of the week or month. It will help you remain focused on other works yet easily manage your repayment.
We are always here to help if you reach out to us. Simply let us know your problem and share your benefits program information. We will be taking over from there.
Lisa Ann has developed a well-experienced professional career. From managing the staff of more than 50+ loan experts at Fastmoneyfinance to boosting the delivery of various loan offers, she has acquired many challenging roles to come out with the best results for the company. Lisa Ann is a Senior Content Author and the Chief Financial Advisor at Fastmoneyfinance. To back her massive experience in the UK’s financial industry, she has the postgraduate degree and diploma in Business and Finance.