Can people on benefits take out a loan in the United Kingdom?
Yes, loans are provided for this category of borrowers. Therefore, if you receive benefits and are looking for a loan in the UK, we suggest considering the following types of loans:
- Personal loans. Some lenders offer personal loans to benefit recipients, but the final decision on whether or not to issue a loan will depend on the type and amount of benefits received.
- Credit union loans. Credit unions lend to beneficiaries, offering lower interest rates and taking into account the borrower's circumstances.
- Budget loans. If you receive income support, a jobseeker's allowance, you can count on a loan from the government to cover your basic expenses
- Short-term payday loans. Banks and financial companies actively lend to beneficiaries, but keep in mind that such loans can be expensive.
Please note that you can apply for a loan for people with unemployment benefits online using our catalog of offers. To do this, click the "More" button and fill out a loan application on the lender's official website. Before sending the application, check whether you meet the lender's requirements, and prepare all the necessary documents (documents confirming benefits, passport, bank account statements).
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 5,000 | 6.30% | 171 |
| 5,000 | 7.30% | 198 |
| 5,000 | 8.30% | 225 |
| 10,000 | 8.40% | 455 |
| 10,000 | 9.40% | 509 |
| 10,000 | 10.40% | 563 |
| 20,000 | 10.50% | 1,138 |
| 20,000 | 11.50% | 1,246 |
| 20,000 | 12.50% | 1,354 |
| 25,000 | 12.60% | 1,706 |
| 25,000 | 13.60% | 1,842 |
| 25,000 | 14.60% | 1,977 |
What are the best microloan apps?
Microloans are small, short-term loans that can be used for various purposes, often aimed at individuals or small businesses needing quick access to funds. In the UK, several apps and platforms offer microloans with varying features. Here are some of the best microloan apps available:
- Tide
- Iwoca
- Monzo
- Atom Bank
- Fair Finance
- Kiva (UK)
- StepLadder
- Creditspring
- Coconut
- Fund Ourselves
