Loans for People on Benefits

£100 to £5,000, same day payout*

Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).


Getting a Loan Whilst Receiving Benefits

A common question we’re asked here at Boutell is whether it’s possible to take out a loan whilst being on or receiving benefits and whilst there are many factors that our lending partners consider, the short answer is yes. Our loan application service is open to all residents of the UK, aged 18 or over, regardless of income status or source. Below we’ve provided an overview of how our loan application works, the particulars considered and a run-through of the various types of benefits that are typically counted as income.

How much would you like to borrow?

Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).

The Process of Applying for a Loan Whilst on Benefits

The loan application process is the same for those applying on benefits as it is for those with regular income from employment. To apply, simply head over to our apply page and fill in your details. You will be able asked to declare your source of income, and which point you can either state unemployed whilst specifying a net monthly income or specifically choose disability benefits. After submission of your details, what is known as a “soft search” will be performed by our lending partners to determine if you’re eligible for the loan you requested. You will then be presented with an instant on-screen decision, and you can choose whether to accept the loan offer.

Being on benefits will not affect this application process however you may be offered a smaller loan amount than you have requested if your total income is relatively low.

Guarantors – Are They a Requirement?

Guarantors are not typically required for any short-term lending solution, regardless of your employment status or whether you receive disability benefits. None of the direct lenders we partner with here at Boutell require a guarantor for any of the loan offers you will be presented with in the event of a successful loan application. The loan amount offered will be based on considerations surrounding your own particulars solely. You will also not have the option to suggest a guarantor should the loan offer be less than you were expecting or outright refusal.

Benefits That Some Lenders Classify as Income

Our lending partners classify specific types of benefits as income for the purpose of loan application and approval. Our current application process does not require a breakdown of the specific types of benefits you receive, nor the amount of income associated with each, rather the total amount received monthly versus the amount of surplus income after your monthly expenditure. The following benefits typically count towards your monthly income: –

  • Child Benefit
  • Child Tax Credit
  • Universal Credit
  • Working Tax Credit
  • Incapacity Benefit
  • Personal Independence Payments
  • Employment and Support Allowance
  • Severe Disablement Allowance
  • Disability Living Allowance (DLA)
  • Other UK Benefits

The above list is conclusive at the time of writing however we’re aware of how frequently benefits terms changed, new benefit types introduced, and current mechanisms rebranded.

Other Non-income Types of Benefit

There are also types of benefits that are not considered “income” and would therefore not be considered as such during the loan application and approval process. Receiving these types of benefits will not impact your ability to apply for a loan directly but may limit your chances of approval and/or the amount of money you’ll be offered. It may also affect the terms of the loan also.

These benefits are: –

  • Housing Benefit
  • Job Seekers Allowance
  • Income Support
  • Pension Credits

If you intend to apply for a loan whilst receiving any of the benefits listed above, you’ll typically need an additional source of income in order to be accepted. Whether this comes from employment or additional benefits will be taken into consideration as well as the amounts and surplus income after expenditure month to month.

How Much Can I Borrow?

Boutell offers loans from £100 – £5,000 repayable on 1 month to 36-month loan terms. We do not limit or hinder the amount requested or the length of the term required because of the applicant receiving benefits. For application purposes, benefit-receiving applicants will be treated in the same way as those participating in gainful employment. Your personal situation will be considered in the same way and the same type of credit checks performed. Our lenders typically look at the amount of income received versus the amount of expenditure as opposed to the specific source of that income. So whether you’re applying for a loan on benefits or as an employed or self-employed worker, you’ll undergo the same process. Bad credit payday loans can be approved within 30 minutes.

The loan amount and resulting term you are offered by one of our lending partners may differ from that which you requested during the application process. You are also under no obligation to accept such an offer and may request to modify it to a lower amount if required. You can also reapply should your situation change or you realise you made a mistake in the process. As only a soft search is performed, no lasting mark will remain on your credit report and you will not be penalised for multiple applications.

How We Compare

  • Boutell
    Why Use Us?
  • How much can I borrow?
    £100 - £5000
    No hidden fees
  • Over how long?
    1 - 36 months
    Flexible repayments
  • Can I apply with bad credit?
    Quick decision
  • How do I apply?
    Online fully SSL secured
  • When can I apply?
    Even on bank holidays
apply now!

Taking a Loan Whilst on Universal Credit

Universal Credit is considered an income source for the purposes of a loan application. Regardless of the amount you receive. We do not differentiate between applicants receiving their benefits via Universal Credit versus those receiving specific types of allowances for specific purposes. Our lenders look at the whole picture, income in versus income out so whether you receive all of your benefits bundled under the Universal Credit umbrella or not, your application will be considered in the same way as those applying with regular benefits or full-time employment.

You will only be able to select one type of income source during the loan application process, so if you are currently employed and use Universal Credit as a means to top up any shortfall in your income, please choose the employment type rather than selecting benefits solely. Your total income from both employment and Universal Credit will be considered by our lenders.

Loans Whilst Receiving Disability Living Allowance / Personal Independence Payments

Receiving disability living allowance (DLA) or personal independence payments will not limit your ability to apply for a loan via Boutell. During the application process, you can specifically select if you’re on disability benefits and this will be taken into consideration. However, acceptance will ultimately be determined by the amount you receive versus the amount of expenditure you face each month as opposed to what particular type of benefit you receive. It would only be a consideration if the benefit source was not considered income as per the income / non-income lists above.

Loans for People on Universal Credit

If you’re applying for a loan whilst on Universal Credit, you’ll need to take a monthly average to properly declare the income figures in our online application form. Alternatively if you have not been claiming credit for 12 months or more, please use the figures detailed in the assessment period for the month prior. The income figure you declare should consist of your standard allowance solely plus any extra amounts you personally receive because of your children.

The temporary income you receive via Universal Credit such as additional money to help cover housing costs should not be reflected in your online application. Please do not include any amounts received by your spouse or partner either. It must be your own, personal income. If you are sharing expenses such as rent/mortgage/bills etc, you can simply document your percentage of the payments in the expenditure fields.

Loans for People on Disability

Your Disability Living Allowance (DLA) is classed as income for lending purposes and both the care component and mobility component can be used to calculate your income. Loans are offered regardless of whether you fall into the lowest, middle, or highest care categories and any eligibility will be primarily determined by surplus income left over after your regular monthly expenditure.

As DLA is paid every 4 weeks (usually on a Wednesday) please make sure to declare your income frequency as monthly when applying. You should also calculate your total monthly outgoings or share of it if you split the payments with somebody else. You are also eligible to apply if you work in addition to your DLA benefits and can include any income such as that received via working tax credits or similar. If paid annually, take a monthly average.

Getting the Right Advice

When taking out any loan, regardless of your employment status or whether you receive benefits, it’s important that you get the right advice. A short-term loan isn’t always the best option. If you’re struggling with debt, the UK has some exemplary resources for dealing with and managing debt such as the StepChange website or National Debt Line. Both resources offer free, impartial advice on debt management and specialise in helping those in financial difficulty.

For general money management advice. Please refer to Money Helper – a government-led initiative that offers an extensive collection of resources to help you improve your financial situation or the Citizens Advice website which offers information specifically on dealing with monetary lenders whilst being on or receiving benefits.

Can I get a loan whilst receiving benefits?

Yes you can. We can match you with a lender that will take your benefits payments into account in their affordability checks. If you can afford to repay the loan, you will be considered just the same as someone with a full time job.

Does it matter which benefits I receive?

No. Your benefits will be considered as your income when calculating how much you can afford to borrow.

Over what term can I take out a loan?

Boutell offers loans from 1 to 36 months. You can specify how long you’d like the loan over during the application process. You may be offered a shorter or longer repayment term depending on your credit rating and eligibility status.

I have poor credit, can I still apply for a loan?

Yes, we accept applications from those with poor or bad credit. We also have a high approval rate and work with a range of direct lenders. Some of which specialise in helping those with a less than perfect record.

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