2014 Lender Lists:

Government and Doorstep/Payday Loans for People on Benefits

There is a healthy demand online for loans for people on benefits. There is a free way to do this, or a costly one assuming that you can find a lender. In This Related Post we looked at the current options via the government that is your free option. As it stands, you can only receive a Budgeting Loan if you have been receiving a selective benefit for the previous 6 months. Community Care Grants and Crisis Loan options are no longer available due to The Welfare Reform Act 2012. The Budgeting Loan choice itself will eventually be replaced by the Budgeting Advance when Universal Credit is fully rolled out.

This product is interest-free, you can receive up to £1500 and the repayment term stretches to 2 years and so it is recommended to proceed down this pathway if you can. When it comes to subprime lending, you must face expensive interest charges and this assumes of course that you do qualify with them. There are two types of subprime products that are in popular demand. This includes Doorstep Loans and Payday Loans for people on benefits. When you search through either of these related terms via Google you won’t tend to find any lenders in the listings making any such reference to the acceptance of any type of benefit.

You just tend to see spammy affiliate/broker websites that are really just looking to take your lead regardless of your personal circumstances. In all honesty, if benefits make up the bulk (or all) of the income of your household, then it is unlikely that you will receive approval from any such doorstep or payday lender online. The market leading doorstep lender (Provident) does promote that CCJs and defaults can see acceptance. They interestingly also state that you may also be accepted if you are unemployed that is rare to see. They don’t specifically reference offering cash doorstep loans for people on benefits, but they may be worth a try.

If you are in full or part time work (alongside the benefit income) then you should be able to get the green light from a range of payday lenders. Much would likely depend on how much you are collectively earning and your past borrowing history. Credit checks are almost always made and so you do have to scrub up well. Several Logbook Lenders don’t credit check, but you must show them that you are in a viable position to repay them as well as having a qualifying vehicle. We would recommended applying for a Government Budgeting Loan unless you have at least £750 coming in each month from your employer.