Can I get a loan if I'm on benefits?
Yes, you can apply. Some lenders will consider benefit payments as part of your income, but each lender decides for itself, and no one can promise approval in advance. Lenders must check that you can afford the repayments, and how they treat benefit income varies by lender and by the type of benefit.
SmartLoans is a credit broker, not a lender. We introduce you to lenders on our panel, and you decide whether to accept any offer.
Start with the cheaper options
Before taking a high-cost loan, check whether you can get help that costs less or nothing.
Budgeting Advance or Budgeting Loan
If you get Universal Credit, you may be able to apply for a Budgeting Advance. Some people on other benefits can apply for a Budgeting Loan. Both are interest-free and repaid from your benefits. Eligibility and amounts change, so check the latest rules on GOV.UK.
Credit unions
Credit unions are not-for-profit and often offer small loans at lower rates. Find one near you with Find Your Credit Union.
Free money advice
If repayments are already a worry, free and impartial help is available from MoneyHelper. They can also check whether you're getting all the benefits you're entitled to.
How lenders look at benefit income
- Affordability: lenders look at your income against your regular outgoings to decide whether repayments are realistic.
- Type of benefit: some lenders accept certain benefits as income and not others. Benefits that are temporary or paid for a specific purpose may be treated differently.
- Credit history: a credit check is normal. A weaker history doesn't stop you applying, but it can affect the offers you see.
- Proof: lenders may ask to verify your income, for example through your bank account.
How to apply through SmartLoans
1. Apply online
Tell us how much you'd like to borrow, your income and a few details about you. It only takes a few minutes.
2. We search our lenders
We look through our panel of UK lenders for products that may suit you. Lenders carry out affordability and credit checks.
3. Get your results
See your options in minutes. If you accept one, your chosen lender pays the money out.
What will a loan cost?
Loans can be expensive, so compare the total repayable, not just the monthly payment. Here is a representative example:
The rate you're offered depends on the lender and your circumstances. Missing a payment could lead to extra charges and could affect your credit file. Only borrow what you can comfortably repay.
Loans on benefits: your questions
Can I get a loan with no credit check?
Authorised lenders must assess affordability and will normally check your credit file. Be wary of anyone promising "no checks" or guaranteed approval.
Are all benefits treated the same?
No. Lenders decide which benefits they accept as income, and this varies. Our application will show you the options available based on your details.
Can I get a loan on Universal Credit?
You can apply. Some lenders consider Universal Credit as part of your income. You may also be eligible for a Budgeting Advance, so check that first.
Is SmartLoans a direct lender?
No. We're a credit broker. We introduce you to lenders on our panel, and we don't charge you a fee for this.
What if I'm struggling to repay?
Contact your lender as early as possible. Free, impartial debt advice is available from MoneyHelper.
Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.