We live more or less in a welfare state wherein the Government takes responsibility to help us maintain atleast a minimum level of living standard when we are in certain condition such as old age, disable, unemployed etc. Usually, Government’s assistance comes in the form of financial assistance, called benefits in day to day parlance, such as old age allowance, disability allowance, unemployment allowance etc. There are lenders who consider such benefits as income based on which they offer loans to people who get such benefits.
The Government offers these benefits to different groups of people, including students, parents, care leavers and young people etc. For example, Disability Living Allowance is a tax-free benefit for people aged under 65 who need help to look after themselves because they are ill, terminally ill or severely disabled. Similarly, Attendance Allowance is a tax-free benefit for people aged 65 or over who have an illness or disability and need help with personal care. Other benefit is Career’s Allowance, a taxable benefit paid to informal carers of people. You do not have to be related to, or live with, the person. The person you care for could be a friend, relative or neighbour. In addition the above, there are more categories of benefits given to citizens.
Why Loans to People on benefits:
At time, the financial assistance in the form of benefits is not sufficient to cover any extra or sudden expenses. Therefore there are lenders who offer loans to those people who are on benefit. These lenders consider the financial assistance in the form of benefit as the income of the borrower and so offer the loan for people on benefits.
Loans for retired: Loan Amount and Cost
The loan amount under loans for people on benefit depends on various factors and varies from borrower to borrower. These factors include the amount of financial help that the potential borrower is getting, his age, health condition, income from saving, income from investments etc. Similarly, the cost of loan i.e. interest rate to be charged by the borrower also depend upon borrower’s profile and risk associated with each individual borrower.
Once you apply for a loan for people on benefits, you can get in principle decision within a day. You have to produce copies of your benefit statement and other documents showing your income, if any from other sources, while applying for loan for people on benefit.
Therefore, if you are living on benefit find yourself in need of some extra money due to some unexpected expenses or for any other reason you find that your income from benefit may not be sufficient to cover the unexpected expense, you can always borrow loans through loans for people on benefit, which has been planned exclusively to suit the needs of people on benefits.