Budgeting loans are welfare crisis, interest-free benefits for vulnerable claimants on a low income. If you are looking for a comprehensive guide to UK budgeting loans, then you are at the right place. In this article, we shall discuss a wide range of topics from the step-by-step processes to apply and how long it takes before the money can go to the bank.
What is a Budgeting Loan?
As already discussed these loans are specifically fashioned for claimants on a low income. It is administered by the department for work and Pensions (DWP) through the social security fund. The budgeting loan can be used for various purposes such as:
- Covering advance payments of rent.
- Maternity health costs.
- Funeral expenses.
- Purchasing household furniture, footwear, clothing and equipment.
- Securing, maintaining and improving your home.
- Catering for certain costs of travel within the UK.
- Household essentials to keep you going as you look for a job.
- Repayment of other debts such as hire-purchase.
Eligibility For a Budgeting Loan
So what are the eligibility criteria and how do you qualify for a budgeting loan in the UK? You may qualify for this loan if either you or your spouse are getting any of the income-related benefits below:
- Pension Credit.- Universal Credit.- Employment and support allowance.- Jobseekers allowance.
Application Process for a Budget Loan
Before you can finally get your money in the bank, you need to follow the following steps for online or paper form application. You should, however, note that if your application is not completed correctly, it will most likely be sent back to you:
- You fill in the form2. You return the form3. The form goes to a sorting centre4. The form is sent to the processing office5. The form is logged6. The form is then placed into current work7. The form is assessed8. An offer is sent to you9. You return the offer10. The offer is sent to a sorting office11. The offer is sent to the processing office12. The acceptance letter is logged13. The acceptance is put into current work14. The acceptance if processed15. Your payment is issued.How Long Does it Take for Budgeting Loan Take to go in Bank?
It is important to note that the time scale for the DWP to process your claim begins from the day they receive your application. After your loan application is successful, you will get a letter detailing this within:
- 25 days if you applied using the paper form application way.- 20 days if you applied using the online form application way.
You are required to sign the letter and send it back to the sender’s address. This signifies that you have accepted taking up the loan. The loan payments usually go straight to your bank or a building society account. If the normal process is not available they may use the Payment Exception Service or a Post Office account.
If you are a UK citizen eligible for any kind of income-related benefits and need some quick cash it is safe to go for a budgeting loan. You should, however, make sure to take up an amount which you are sure that your benefits can pay up without much
Before applying for a budgeting loan consider applying for a guarantor loan from Bad Credit Site which could allow you to access the funds you need at a relatively low cost.