Loans From the Government

As well as being available from high street lenders, loans are offered in special circumstances by the UK Government, via the Social Fund. The Social Fund is part of the state benefit system which provides individuals with loans and grants. Types of loan on offer include budgeting loans and maternity grants. All government loans aim to provide financial support to people who find themselves in unexpected difficulties. To qualify for these loans, an individual must already be receiving Income Support, Jobseeker's Allowance and/or other benefits; however, the refusal rate is high. If you wish to check your eligibility, contact your nearest Jobcentre Plus, which you can find listed in your local telephone directory. Those of pension age who are interested in applying should contact The Pension Service for details of the acceptance criteria.

Crisis loans are interest-free loans available to everyone (regardless of whether or not they receive benefits), designed to provide money if there is no other source of help available, for example in the event of an emergency or disaster. They are granted in situations where your safety or that of your family would be at risk if you were not given financial support. As a result you may be required to prove that your family is in need, or even in danger, which can prove difficult to do. Other loans, such as small business loans and student loans, are also available through government funded organisations.