There is a big section of people in UK, who even today believe that being on benefit is one of the worst aspects of one of financial part of life, and simultanously if you fall into a situation when you have to borrow money then just adds to the woes. But, these are no more than a myth if you look into present scenario, as you can very easily find lenders in this competitive market who offer loan to people on benefit. In general benefits are granted to just fulfill your daily needs and you can anytime find yourself forced to get a loan in cases of emergency such as Medicare etc. Being under benefits can be due to underemployment per week or any physical ailments or due to some other relevant reasons. Whatever the reason you need not be depressed by this condition as loans for people under benefit are there for your assistance.
Loan for people on benefit: figures and facts
You can borrow an amount starting from £ 500. The amount to be approved depends on your ability to pay back, or the collateral you provide. These loans are available in both sorts ie secured and unsecured. In case of secured loan you need to provide some collateral and the interest rate is a bit lower. However, the case is a lot different for the people on benefits who always prefer to go for an unsecured loan as there are risks of losing the collateral in cases of defaults. So, unsecured form of this loan is a better option for such people. But, the interest rate quite obviously is higher in comparison to one offered in case of secured format. Interest rate is typically 7.7% APR variable. It can vary around 5% APR to 19.9% APR variable.
Loan for people on benefit: repayment
One thing which is very important for people on benefit who avail loan is the pre planning of repayment. As the repayment is going to be made from only the loan amount or the benefits it is very important to make a good assessment of your monthly expenditure and then decide on the repayment terms. You can not afford to make defaults at all because it will worsen your credit history and you will be almost ineligible for any loan in future.
Loan for people on benefit: application process
You can apply online and there are agencies that provide the services for forwarding your loan application to lenders who offer these kinds of loan. There are a number of lenders in the market who grant these loans. You have to look into their offers carefully and then with the use of all your wits you must decide about the best lender for you who satisfy all your requirements. Once you send back the completed form you become eligible for the loan in case of unsecured loan, however for secured loans there will be some time spent on the verification of your collateral's document and also its valuation.
Loans for people on benefit: types of loans available
Some of the popular types of these loans are tenant loan, crisis loan, budgeting loans, homeowner's loan etc. Consequently there are numerous purposes for which these loans can be used.