Don’t get me wrong! The on-benefit loan is actually another personal loan. You just do not know about it. To learn about it specifically, all you can do is ask yourself a simple question, and that is, have you ever checked it out?
You probably didn’t. This is why I thought it to be entirely subjective and relevant to present my views on this loan. Therefore, if you are one of the people on benefits and you need a loan today from a direct lender online, then I might be able to shed some good light on the matter.
What Exactly Are On-Benefit Loans?
Simply put, these loans are alternatives to personal loans…that’s for sure. However, they are indeed, at the end of the day, personal loans themselves.
With the on-benefit loan, you can get to receive the money by sharing with your direct lender the money you earn by benefit programs and them only. Like an unsecured loan, the on-benefit loan does not usually require collateral or a guarantor.
Are you feeling happy already? Well, why wouldn’t you be? However, if you hadn’t checked it out like I suggested before another loan caught your interest, you might need to come along with me to learn about the special traits of this loan. You can be assured that it will interest you like no other.
Wait a Second! Tell Me If I am Getting an On-Benefit Loan Easily?
Well, if you had not gotten it safely and easily, I wouldn’t have thought to write this post down. But yes, confusions are normal, and they will be a little disturbing when you don’t have apt knowledge of a loan product. Let us clear them on this point quickly.
Eligibility: You have to be at least 18 or older, and a permanent UK resident with, of course, a UK bank account, and you are good to go. Along with that, you must receive benefits from the government or any other entity, such as a non-profit organisation. With that being said, we can now look at the kind of benefits accepted by lenders in the country:
- Personal Independence Payment (PIP)
- Working Tax Credit
- Disability Living Allowance (DLA)
- Child Benefit
- Child Tax Credit
- Employment and Support Allowance (ESA)
- Universal Credit
- Incapacity Benefit
- Industrial Injuries Disablement Benefit
- Fostering Allowance
For more information on whether or not you will be accepted for loans on benefits, a good idea is to speak with the lender as soon as you can. We are a direct lender organisation working in the industry for a long time. Call us 1OneFinance, and we can assure you that we can help you out in the best ways possible if only you make a little effort to reach out to us first. We can take over from there.
In the following point, I have tried to give you a glimpse of what exactly loans on benefits can do and what traits – or let’s call them perks – you can expect from them. Trust me; they’re going to be worth borrowing.
Why On-Benefit Loan Can Work as a Great Personal Loan Alternative
As mentioned earlier (and don’t get bored with this, alright?), loans on benefits are typically unsecured or personal loans. They are just given in terms of your benefit programs as a means of earning, which repays the loan. Pay attention to the points mentioned below and find out if you can take it out:
- It’s Perfect for Taking out Loans at Unemployment
No one wants to be unemployed. But people get unemployed. In these times, you might be feeling really disturbed. But then you scratch your head and come up with a fantastic solution, which is the ESA, better known as the Employment and Support Allowance. Using this benefit, you can effortlessly book a loan from us and send us back the money in set instalments.
A loan of this kind might be even more helpful only for jobless people because they can easily use the unemployment allowance to organise their payments for the loan. Using the money, they can take care of the more essential aspects such as paying utility bills, storing food and spending money for emergencies (if any).
- You Do Not Have to Worry about Credit Score Problems
Your credit score might act like a block in your way to get the loans. However, you may be able to get a loan even with bad credit when you are going with a plain and simple loan for people on benefits.
We, as lenders, need proof that you can repay us the money using your benefits programs. When you share your benefit details with us, we check on that and find out whether or not you can repay us comfortably using the benefits you receive. If you qualify for this test, which you will in most cases, we can never say ‘no’ to offer you a loan. We do make a soft credit check to understand your financial behaviour.
- These Loans Go Easy with the Repayment Plans
When taking out an on-benefit loan, you already know that the product is targeted at a particular community of people, right? We, as direct lenders, know that before you. So, we have made its repayment terms to go easy for you by creating multiple options.
You can choose from the list of repayment packages we offer and choose one accordingly (that fits your budget, of course). We recommend using a loan calculator and each repayment package to find out instalment rates in a snap. It does help.
To Conclude
Well, the real thing about an on-benefits loan is that it is versatile, and it would get a lot of your jobs done if you are using it the right way. Take a look at your benefits programs thoroughly; find your loan affordability; talk to us for further assistance and then take out the money. Don’t worry about repayment. We will be there till this loan is written off…we promise!
Jessica William operates as a Senior Consultant and Chief Content Editor for 10 years at 1Onefinance. She assists the firm in getting a grip on the new lending laws and regulations. She does so by researching the trends, consumer requirements, and new audience preferences. Jessica is responsible for making important financial and administrative decisions.
Apart from helping consumers with the best solutions, Jessica Williams helps them ensure financial stability. She analyse the business data, finances, expenses, and revenue/ income of customers and determines necessary changes. Jessica finished her Doctorate in finance and law and implements her knowledge to the best interest of the firm and customers.