The loan should be for everyone as anyone can face the requirement of money. Those who are having bad credit can go for poor credit loans, those who need it in an emergency can go for quick cash loans and those who need it for other purposes they can apply from the range of loans available in the UK. But what about those who are already on benefits? Before we start our guide about the ‘loan for people on benefits, it is important to know, when we say, someone is on benefits, what are the pros of this loan and how they can apply for the loan while on benefits?
Let’s explore all of these steps by step beginning with,
When do we say Someone is On Benefits?
People on benefits was an unknown phenomenon until the UK government decided to serve each of their citizens with a decent lifestyle. The UK and Europe are considered as the forerunners in this concept of welfare. The concept is specially designed to offer benefits and support to those who cannot afford to live a satisfactory life. This situation was a hundred years back, coming back to the modern era, now the UK offers some special benefits to those who can’t have the money for a sound life. The ones who receive such benefits from the government are the ‘People on Benefits’.
Along with the UK, Europe, the USA and many more countries offer such help to their respective citizens. Although the benefits may vary from country to country, the basic motto of providing necessary services remains the same. There are millions of people across the globe who take advantage of such policies.
There are many different types of benefits offered by the government to these people, which includes health benefit, unemployment benefit, child benefit, housing benefit and more.
But the question here is if someone is entirely depending on the government for the necessities of life, are they able to get their loan approved?
Is It Possible For ‘People On Benefit’ To Get Loans?
The answer is Yes! If some person is receiving the benefits of the government, that doesn’t mean they are not able to apply for the loan. In this modern era, the cost of the necessary substance is increasing day by day and to cope with the same, government benefits may not be enough. So to resolve the monitoring issues, even the people who are receiving benefits from the government are allowed to apply for the loan, although getting a loan for such people is not an easy task.
There are only a few loan companies that can offer loans to the people on benefits and one of them is Little Loans. As we have already mentioned getting a loan may be a hard nut to crack for those who get government benefits, the reason can be many. From lesser regular income to not receiving sufficient money from the government. Moreover, if someone who is on benefits is willing to apply for a loan should always remember the below-mentioned points.
Things To Remember While Applying For Loan While On Benefits:
No one wants to put their whole energy into applying for the loan and yet end up receiving a cancellation. So, while you are on government benefits it becomes essential for you to do proper research before involving in the loan. Which type of loans are unrestricted to you, how to apply for the same and what documents are required, are some of the vital things to know. This section of the post will cover all these aspects that one should remember when applying for loans while on benefits.
Type Of Loans Available For People On Benefits:
When you are on benefits and when you do not have a strong source of income, there are very limited loan options available to you. However, you should always look for all the accessible options. Banks and lenders may let you have access to all of these mentioned loans depending upon your eligibility for the same.
- Personal loan
- House loan
- Business loan
- Vehicle loan
- Bad credit loan
- Guarantor loan
- Debt consolidation loans
Even when you are applying for the loans on benefits, the eligibility criteria is not much different for you.
- You should be above 18 years of age.
- You should be a resident of the UK.
- You should have a source of income (other than benefits)
- You should have a bank account.
- You should have an address and identity proof.
Along with this, you may have to submit some supplementary papers related to the benefits you are receiving. With this one has to inform the loam company regarding the regular source of income and the details related to the expenditure. All these factors help your lender or bank to find out whether you will be able to repay the loan or not.
How To Apply For Loan On Benefits:
So now when you know what are available loan options and what are the eligibility norms for a loan on benefits, the next step is to know how to apply for such a loan. Although the application procedure is not much different than the usual loans, still one has to consider a few things while applying for loans on benefits.
You can apply for this loan at a bank or a lender. Little loans is Financial Conduct Authority (FCA) authorised and regulated brokers in the United Kingdom. You can take the advantage of easy loan application and fast processing with this lender. You just have to visit the office and the executive will guide you. One can all submit the application form online. This lender also provides the flexibility of repayments and less interest rate as compared to most of the loan companies.
So, when you are on government benefits and still need a loan, you just have to consider this guide and you will get the loan of your choice, effortlessly.