Table of Contents
- What is a Budgeting Loan?
- Is a Budgeting Loan Right for You?
- How Long Does it Take to Get a Budgeting Loan?
- Can I Have Two Budgeting Advances?
- How Many Budgeting Advances Can You Get?
- How Long Do You Have to Pay Back a Budgeting Advance?
A Budgeting Loan is a short-term financial loan from the Department of Work and Pensions (DWP). Budgeting Loans are designed to help people on low incomes and benefits to pay for essential items such as rent, furniture, clothes or fuel. You can apply for up to £1,500 and the loan is repaid over a period of up to two years.
Before you apply for a Budgeting Loan you should consider whether you are able to pay the loan back within two years. You should also consider whether a Budgeting Loan is the best option for you. You may be able to get a more suitable loan from a bank or building society, or you may be able to get other types of help from your local council or charity.
Once you have made an application for a Budgeting Loan it can take up to six weeks to receive the loan. You will be sent a letter confirming the amount that you have been awarded and the repayment terms.
You can only have one Budgeting Loan at a time and you must have repaid the previous loan before you can apply for a new one.
You can apply for up to £1,500 per Budgeting Loan. If you need more than this amount you can make separate applications.
The maximum repayment period for a Budgeting Loan is two years. You must make regular payments towards the loan and the amount you repay each month will depend on the amount of your income.