Budgeting Loan – 0843 487 1802
It is called budgeting loans because it starts with a smallest loanable amount, £100, with no interest. The basic mechanic of the loan is to pay the amount you borrowed within the given time frame, usually at least 26 weeks or 104 weeks for maximum time. The amount of loan can range between £100 and £1,500 and will depend on the applicant’s financial stability, savings, the number of persons living in the house, and the existing loan that the applicant has loaned from to the social fund. Granted budget loans are not considered as income and will not further affect the applicant’s benefit.
Who are eligible for budget loans?
The main objective of budget loans is to provide financial assistance to employees with very low income support, jobseekers, employees with the need of support allowance and those who are members of state pension credit. The chance of loan approval may vary according to the applicant’s financial and personal circumstances. The board of decision makers will consider the urgency of the applicant’s need, emergencies such as health related concerns and hospitalisation of the applicant or his/her family members. It is also known as crisis loan number and has the same contact number as budgeting loan.
However, budget loan will not be granted to applicants who are not able to pay off the amount within the given time. On the other hand, denied loan applications can appeal to the social fund deciding party through a letter of application within 28 days after the decision and explain to the board why the decision should be reviewed.
Loans are classified into three maximum loanable amounts. One loanable amount is available for single people, one for couples without children, and one for families (including single parent) with children.
Loan forms (Form SF500) can be downloaded from the Social Security Agency or from the nearest Social Security or Jobs and Benefits office. Downloaded forms shall be duly completed, printed and then sent to the Social Security. Budgeting loan claimed from a bank, building society or other account provider’s account will be automatically deducted from the applicant’s benefit, within the agreed time frame.