Budgeting Loans – How To Get Approved
How budget loans work? Learn how to apply and get approved
Budget loans are designed to help you pay for the things you absolutely have to have. Things like furniture, moving costs, clothing and so on. You are required to borrow at least £100. Since these loans are interest-free, you only have to pay back the amount of money you borrowed. This makes it an ideal situation for many people who are strapped for cash.
You are required to pay the loan back within 104 weeks, so you have plenty of time to do so. The repayment is going to come out of your benefits. If you don’t continue receiving benefits, you will have to come to some sort of an agreement on how you are going to pay off the loan. As long as you have been getting some type of income-related benefit for the last 26 weeks, you are eligible to apply for the loan. You have to be receiving the benefits when your application is processed.
What are you going to receive?
You are eligible to receive the following:
- £348 if single
- £464 if a couple
- £812 if there are children
The amount of money you are going to receive will depend on:
- If you are able to repay the loan
- If you have any savings over £1,000 (£2,000 for individuals or their partner over 61)
You also cannot have an outstanding debt to the Social Fund of more than £1,500.
The loan is typically put into your bank account for you.
Who is eligible for the loan?
To qualify and receive the budge loan, you and your partner have to have received benefits from one of these funds for the last 26 weeks:
- Income Support
- Pension Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
When your application is processed, you still have to be receiving benefits from one of these places.
The loans can be used for:
- Household equipment or furniture
- Footwear or clothing
- Advance rent for a new home
- Moving expenses
- Travel expenses
- Tools to help you find or start work
- Improving, securing or maintaining a home
- Funeral or maternity expenses
- Repayment of debts that you took out for any of the above
How do you file a claim?
Go online and download form SF500. Once you fill it out, you can turn it in to any of the different agencies around town or through Jobcentre Plus. It can take up to 15 business days to get an answer on your claim. Make sure to include your mobile phone number so you can get updates on where your claim is in the process.
If you have any questions, you can always contact Jobcentre Plus. Please allow 15 business days to pass before you contact them to give them time to approve or deny your claim. Otherwise, they might not have had time to process your claim.
If you aren’t happy with the outcome, you can always ask to have your claim reviewed again. You have to file for the review within 28 days from the time the decision was made. Make sure to include what you think was wrong. If that doesn’t resolve the problem, you can take it a step further and ask for an independent case examiner to review the case for you. This should be done within 21 business days.
