Budgeting Loans, What Are They?

Money is something that everyone needs, in today’s world it has become as a vital resource, something that one cannot live without. Sadly, money is also hard to come by and it is even harder to hold onto because of the endless stream of expenses that keep on coming our way. People often fall on hard times where they are unable to work or are faced with an unexpected expense that leaves them with no cash to spend, times like these can be stressful and scary as well, but if you are a citizen of the UK then you can make these hard times easier with the help of a budgeting loan.

The government of the UK has a habit of looking after its citizens, the benefit system that it has developed is made to support people who are unable to get enough money to meet their everyday expenses. Budgeting loans serve as a financing program for the unfortunate, for people who do not have a source of income or are met with an expense that they are unable to cover on their own. The minimum amount that one can get from these loans is a hundred pounds, the maximum amount gets decided based on a number of factors, including the person’s marital status, and how many kids do they have (if any).

These loans can be received in order to pay for moving costs, for buying furniture, for meeting clothing expenses or some other need that is recognised by the United Kingdom’s benefits system. Budgeting loans can really help you out, however receiving them is not as simple as contacting the authorities and telling them that you are in need of financial help, there are a number of requirements that must be met. First of all, in order to receive a budgeting loan, one must be legible for UK benefits for at least 26 weeks before the request can be made and you must continue to be legible for UK benefits throughout the time in which your application is processed and approved.

Typically, an application can take around 15 working days before it gets approved, during this time, the amount that shall be loaned to you gets decided based on your ability to pay the loan back and how much savings do you have. Another factor that determines your legibility for budgeting loans is that any previous budgeting or crisis loans debts that you may have due must not exceed 1500 pounds.

If you are legible for budgeting loans then you can get a budgeting loan by applying for one through an SF500 form which can be obtained online or from a local Jobcentre Plus, the form asks for basic information about your identity and why you want to receive a budgeting loan.

Just like with taking loans from a bank, knowing as much as possible about budgeting loans can help you prepare yourself before submitting an application for them and increase your chances of actually being granted a loan.