The Low-Down on Budgeting Loans

Article excerpt

Q. What exactly are budgeting loans? A. Budgeting loans are interest-free loans which can be made from the Social Fund. They are intended to help with occasional lump-sum expenses which are difficult to budget for during a period on benefit.

Q. Who can apply for a budgeting loan? A. To apply for a budgeting loan a person must have been in receipt of one of the following benefits for a 26 week period when the application is made: income support pension credit ? income-based jobseekers allowance income-related employ-ment and support allowance.

Q. Are there any savings limits for budgeting loans? A. The amount of a budgeting loan will be limited if the person claiming it and her/his partner have savings or capital of over PS1,000. If either the claimant or his/her partner is aged 61 or over, the savings capital limit is PS2,000.

Q. What can a budgeting loan be awarded for? A. A person can apply for a budgeting loan for any item or expense which falls into a list of broad categories. These categories include: furniture and household equipment clothing and footwear improvement, maintenance and security of the home travelling expenses. …