Loans for People on Benefits

Can I get a loan if I am receiving benefits?

The quick answer is Yes! Pounds to Pocket facilitates access to short term funding for people receiving benefits. There are some key eligibility requirements surrounding your personal circumstances that you must meet, and you must be receiving benefits that are classed as income to proceed. We’ve detailed the specific types of benefits our lenders will accept below.

Pounds to Pocket is based solely online. You will receive an immediate decision on screen and there will be no follow up phone calls, additional credit checking or paperwork to complete. Our goal is to make obtaining loans for people on benefits as hassle-free as can be. And we endeavour to get the funds to you as quickly as possible. Often on the same day you apply.

How much would you like to borrow?

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Representative Example: Rates from 49.9% APR to 1335% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Repayment of £92.12. The total amount repayable is £1658.16. Interest amounts to £658.16, an annual interest rate of 65.67% (fixed) Representative APR: 89.5% (variable).

Our lenders practise responsible lending and strictly adhere to the FCA’s framework regarding the fair treatment of customers. You will not be discriminated against because you receive benefits. The process is identical for all loan applicants.

Pounds to Pocket now offers loans for those who are unemployed as well as loans for people on disability allowance. Before applying, please make a note of the types of benefits you receive, and the amount of money received each month. This will make the application process faster.

Will my benefits be classed as income?

Some benefits are classed as income which means they can be used for loan repayments. Some are not. Please make sure you understand the type of benefit you’re receiving before applying and how much you receive and when.

For those applying whilst receiving Universal Credit or Disability Living Allowance, please see the section below. If you receive multiple benefit types, please total up the total amount received for application purposes as you are not required to submit an individual breakdown of amounts.

Pounds to Pocket accepts applicants with income from:

• Universal Credit
• Child and Working Tax Credit
• Disability Living Allowance (DLA) – Now being replaced by PIP (Personal Independence Payment)
• Child Benefits
• Employment and Support Allowance
• Incapacity Benefits
• Fostering Allowance

Pounds to Pocket does not accept applicants with income from:

• Job Seekers Allowance
• Income Support
• Housing Benefits
• Pension Credits

How much can I borrow whilst receiving benefits?

Pounds to Pocket offer short term cash loans, for any purpose. You can borrow as little as £100 over a 3 month term or as much as £5,000 over 3 years. All loan amounts and terms are highly flexible, simply borrow as little or as much as you need and pay it back on a term that suits you.

The loan options available to those who are currently receiving benefits in the UK are identical to those who are in full time employment. There is no difference in availability, application, or process.

Like with all loans offered, the amount you can borrow will be determined primarily by the affordability of the repayments as opposed to how and where the income is derived. So if you’re currently receiving benefits, you’re more than welcome to apply online.

Your benefits must be paid into a UK based bank account in your own name on a regular payment frequency. You will be asked to specify how often you receive your benefits income during the application process.

I am on Universal Credit; can I still borrow money?

Universal Credit is gaining popularity in the United Kingdom as it facilitates the easy management of multiple income producing benefit schemes and some beneficiaries are even finding themselves with more money coming in because of switching to Universal Credit. More than they would have if they totalled up all the individual benefits they receive. Particularly if one is receiving both working tax credit and child benefits.

Pounds to Pocket welcomes loan applications from those currently receiving Universal Credit as it is considered an income and will be viewed as such by our lender network. Your loan application will be processed in the same manner as those yielding the income from employment and you do not need to provide a breakdown of what your Universal Credit payment consists of.

How does it work if I have a Disability Living Allowance?

If you are currently receiving Disability Living Allowance (DLA) you are welcome to apply for a loan at Pounds to Pocket as DLA is a benefit scheme that is considered income. This applies to both those receiving DLA as their sole income source and those receiving it as a contribution against income from regular employment.

Our direct lenders do not require knowledge of the specific benefits you receive or the individual amounts each scheme yields. If DLA is your primary source of income, simply select “Disability Benefits” on our loan application form and enter the net monthly amount of income it yields.

If you receive DLA plus another benefit type but do not combine them under the Universal Credit umbrella, you can simply select disability benefits as your source of income but adjust the net monthly value to reflect the total amount of the benefits you receive.

Am I eligible? Do I need a guarantor? How do I apply?

Pounds to Pocket has made the application process as straightforward as possible. Please review the eligibility criteria below before applying.

Eligibility

To be eligible for a benefits loan via Pounds to Pocket, you must meet all the core criteria below. No loan application will be considered unless ALL the following are met: –

• 18 Years or older.
• Full time UK resident.
• Have a regular income via employment, self-employment, benefits (which are considered income).
• Have a UK postal address and phone number.
• Hold a UK bank account that your income is paid into frequently.

If you meet all the above criteria, you can visit our online application form to apply now. It takes less than 2 minutes to complete, and you will receive an instant decision on screen.

Please make sure you have all your personal details to hand along with information on the type of benefits you receive, the amount and frequency it is paid to you.

No Guarantors Required

All the direct lenders in our network process the details of the applicant solely. You will not be afforded the opportunity to propose a guarantor at any point in the loan application process. Recommending a guarantor will not increase your chances of acceptance. We are strictly a no guarantor lending service.

Loan approval decisions are primarily based on affordability, not credit history. So even if you suffer from low, poor, or even bad credit but regularly receive benefits, you will still be considered. Pounds to Pocket boasts one of the highest approval and acceptance ratings in the industry. Particularly for those on benefits or disability.

Our Application Process

The loan application and approval processes are standard across all our loan offerings. Loans for people on benefits included. To get started, simply visit our online application page. There you will be presented with a quick and easy form to complete. We request the most basic information such as your personal details and a little bit about your income amount and source. This is primarily to determine if the loan is indeed affordable for you so we can lend responsibly.

Upon submission, you will be presented with an instant decision on screen. You may also receive a revised loan offer which may contain a different loan value or term than you originally requested. This occurs when a lender in our network considers affordability to be an issue. You are under no obligation to accept any offer, revised or otherwise but should you choose to, the loan funds will be transferred to your bank account. Often on the same day you apply. If you apply on a weekend, the transfer may take place on the following working day.

Is a budgeting loan a good alternative?

Assuming you’re eligible, a budgeting loan is a great alternative to regular short term loans designed for people on benefits. The only real downside to the service is that you must have been receiving benefits for at least 6 months to apply. And even that does apply to you, getting approved without significant evidence can be a challenge.

For those not in the know, a budgeting loan is a government backed initiative that has replaced the previously offered crisis loans service. It is designed to be used to cover regular day to day expenses and help pay for things such as: –

• Property rental.
• Travel costs in and around the United Kingdom.
• Clothes or footwear for you or your family.
• Furniture or other household items such as white goods.
• Maternity costs for you and your new-born.
• Repayment of existing debt/loans.
• Costs associated with finding a job.

Another advantage of budgeting loans is that you will only pay back the amount you borrow. No interest is charged, regardless of the amount you borrow or term it is paid back over. The repayments are also taken directly from your monthly benefits making them easy to manage.