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 AoneCredit 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
loans for people on benefits

AoneCredit provides loans for people on benefits at competitive interest rates. Borrow money today!

Opportunity To Apply For Loans From Anywhere

AoneCredit brings the opportunity for its prospective borrowers to apply for the loans on benefits from anywhere in the UK. We have already brought loan packages for the locals residing in Liverpool and Manchester.

Recently, we have started loans on discounted interest rates for those living in Newcastle upon Tyne. Those pursuing the benefits can use them as their repayment source and avail guaranteed acceptance on the loan approval.

As the responsible direct lender in the UK, we never shy from an opportunity to bring loan deals that favor everyone and everywhere. With our large online presence, almost every city has been covered, whether it is Sheffield or Nottingham.

Keep in touch with us; we surely bring many more loan benefits in the upcoming months.


What are the purposes of loans for people on benefits?

There can be many purposes of availing loans for people on benefits. Some of them can be:

  • When conventional lenders are not accepting benefits
  • When you need more money that benefits are unable to fulfil
  • When you are going through the financial emergency

These are some of the reasons and many others can be. A suggestion for you is to tell your loan purpose to the lender so that it can favour you more on lending terms.

What is the eligibility criteria for Loans for people on benefits?

The qualifying conditions for loans for people on benefits are simple, and everyone can pursue them easily. Please have a look below points which is very important in terms of eligibility criteria.

  • You should be residing in the UK for the last 7 years
  • You should have the record of the benefits that you are receiving
  • You may have a part-time income

What defines people on benefits?

People on benefits are those individuals, who are receiving certain government benefits in the form of funds. Individuals, who fall into these categories, are able to avail such privileges:

  • Unemployed people
  • Persons who are unfit
  • Disabled people
  • Women maternity leaves
  • Retired individuals
  • Financially weak people

There are some specific loans for people on benefits available, which can be availed through online method

Can I get a personal loan while unemployed and on Retirement?

Yes, there are some direct lenders in the UK offering a personal loan to those who are unemployed or living a retired life. They have prepared some particular loan deals where features and benefits are there for these classes of borrowers.

You can find them online and follow the procedure on the same platform.

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

    11.8% APR
  • Monthly Repayment Amount

    £553.59 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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