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Budgeting Loan

Author: webadmin And Facted Checked by : Shanie Capper
Last updated on : 21 March 2024

There are all kinds of different loans, each of which offers different kinds of benefits to those receiving them.

Loans can be used to help individuals or organisations to navigate their way through difficult financial situations, and help to give them direct access to finances that can help them in numerous ways.

One of the most common types of loans that can be found in the UK is the budgeting loan, which helps individuals to pay for unexpected expenses that pop up in everyday life.

But in order to gain access to a budgeting loan, the individual needs to actually apply for the loan. But how does that work?

How To Apply For A Budgeting Loan

Are you reading this now because you want to know how to apply for a budgeting loan?

Then you should look no further because today we are going to take a look at how you can do exactly that, and what it involves.

Read on down below now to get started and find out all the answers you seek!

How Long Does It Take To Apply For A Budgeting Loan?

The amount of time it takes to make a budgeting loan application and then receive a decision on the application can vary depending on the method you take to make the application.

If you apply for a budgeting loan via the GOV.UK website, then you can expect a decision on your application to be returned to you within 7 days at the most. This will either be sent to you via email or text message.

However, if you chose to receive your application decision by post, then it may take up to 21 days at most for the decision to reach you in the post.

If you chose to mail in your application, then you should add an extra 21 days to this time frame, and if you chose to have the form posted to you to then be filled in, then you should add yet another 21 days to the time frame.

Loans are designed to allow people to quickly gain access to temporary money, directly from a lender, in order to get through certain financial situations, with the promise that the money will eventually be paid back with interest.

There are so many different types of loans available on the market, each of which is designed to help specific groups of people with specific financial needs.

However, because loans are a potential risk, and it involves borrowing money, those that are lending the money out want to be sure that the money is entering safe hands.

How Many Budgeting Loans Can I Have In A Year (1)

This means that there are certain limits on certain loans, making them inaccessible to people that don’t meet specific criteria.

Do you meet the criteria for a budgeting loan, but now you’re wondering whether it’s possible to have multiple of these loans in a single year?

Then make sure you read on down below because we are here to show you everything you need to know!

How Do You Become Eligible For A Budgeting Loan?

As with any loan, there are a few criteria that you must make sure that you meet in order to be eligible for a budgeting loan.

In order to be eligible for a budgeting loan application, you need to ensure that you are already earning benefits such as:

  • Pension credit
  • Income support
  • Jobseeker’s allowance
  • Employment and support allowance

However it is not enough just to be claiming these, as you need to have done so for 26 consecutive weeks, and without breaks exceeding 28 days.

How Many Budgeting Loans Can I Have In A Year

How Much Can You Borrow With A Budgeting Loan?

How much you can borrow with a budgeting loan will depend on a few things.

The most important thing that can affect the amount you can borrow is your current living situation.

If you are applying for a budgeting loan as a single person, then the maximum amount that you can claim from a budgeting loan is £384.

If you are claiming a budgeting loan as part of a couple, then the maximum amount of money that you can claim is around £464.

If you are claiming a budgeting loan for use with a family of children, then the maximum amount that you can claim is around £812.

The minimum amount that an individual can claim on a budgeting loan is around £100, which means that it is possible to ask for specific amounts of money between the minimum and maximum range to suit an individual’s financial needs.

This can make it easier to manage finances and the potential debts associated with loans.

How Do You Apply For A Budgeting Loan?

If you like in the United Kingdom, you can head to the GOV.UK website, and use the online application form to make your application.

This is a quick and easy way to make your application and allows the process to get started right away, as the relevant authorities can get right to work on assessing your application.

There are also official forms that you can download, print off, fill in, and then send in the post to the attached address to make your application.

Using this method may mean that it will take much longer to hear back about your application, but is a great option for those with limited access to the internet.

In general, you should expect to hear back about your budgeting loan application within 7 days if applying online, and within 21 days if applying via post.

To Conclude

Luckily, if you are someone that needs to make frequent use of budgeting loans, there is no official limit on how many can be accessed by an individual in a single year.

However, every time a budgeting loan is needed, the individual will need to follow the same process, and they will need to make sure that prior loans have been paid back.

Frequently Asked Questions

Can You Get 2 Budget Loans?

You cannot gain access to a second budgeting loan until you have paid back all debts on the first budgeting loan.

This helps to prevent you from incurring significant debts that you cannot easily pay back.

Is There A Limit To How Many Budgeting Loans You Can Have?

No. There is no limit to the number of budgeting loans you can apply for. But you must make sure that each budgeting loan is fully paid back before applying for another.

Can You Get 2 Loans In The Same Year?

Yes. Many lenders will be willing to lend out multiple loans in the same year. However, they may not do so if any prior loans are still yet to be paid back.

Can I Get A Budgeting Loan The Same Day?

Unfortunately not. In order for you to receive a budgeting loan, you must first make a request for one, and once your request has been made, your request will then be assessed by a relevant authority.

Assessing your request takes time and effort, thus you should expect to wait some time to hear a decision about your request.

However, the latest you should expect to wait if applying online is around seven days!

Why Would You Be Refused For Budgeting Loan?

One of the most common reasons that people find themselves being refused a budgeting loan is that they have yet to pay back any of their existing debts on any prior budgeting loans.

You cannot have two budgeting loans simultaneously.

What Can You Ask For A Budgeting Loan For?

Budgeting loans can be used for things such as household essentials, clothes, and rent.

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Warning: Late repayment of payday loans can cause you serious money problems. For help, go to moneyhelper.org.uk.

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