How To Qualify For Budgeting Loans?

Jun 01

Before we start discussing that if you are qualified enough to get budgeting loans, you need to know if they are worth seeing or good enough for your needs or not. To be honest, if you really need a loan you can give atleast a try for a budgeting loan. Because it is far better than paying high rates of interest to banks or even the doorstep lenders.

Where Can You Use Your Budgeting Loan?

Well if you are familiar with budgeting loans this won’t be an issue, but this can be helpful for those who does not know that what things are covered by budgeting loans. The following things will help you out.

  • Household items and Furniture.
  • For traveling expenses and trips.
  • For new clothes and footwear.
  • To start your own work or help you look for some work.
  • Paying your debts.

Who Can Qualify For A Budgeting Loan And How?

Getting credit loans can be tough, but budgeting loans are quite easy. Most of the persons who apply for budgeting loans are qualified enough to get a loan sanctioned.

Now what they need to qualify for budgeting loan:

  • At present, you need to be receiving your income support and that also based on income-related employment.
  • You should be claiming for the twenty-six weeks at minimum if possible or with a break, not more than 28 days. s
  • If you have any existing loan which you have paid or currently paying at a good credit rate, you can get a higher amount of loan.

Now it is upto the decision-maker who is entitled to decide whether you are eligible enough to get the budgeting loan and if you are eligible, he will decide how much you will get.


Time For The Application

The decision making for applications of the applicants has circumstances and these circumstances are responsible for the amount of loan you will receive after that application have been cleared. The circumstances are you being single, a couple or a couple with a child. Among these three circumstances, there is a maximum limit of money you can receive. The budget that will fit your particular circumstance out of these three will get you the certain loan amount.

As you can see the limit is set on the maximum amount of the budgeting loan will be a single person. And then the rules are being set by the Secretary of the State.

  • A single person will get the least benefit of the loan with the amount being one.
  • But, a couple will receive the amount of one and the one-third of that amount added to it.
  • A couple with a child will get one with two-third of the amount being added to

How To Repay The Amount Of  Loan?

The loan you have taken is interest-free and you don’t have to pay any extra amount for that. The interest gets cut out at the time when your loan is agreed. Benefits will be taken out, but if you don’t have any benefits you need to pay by another method which will be provided by them.

These are the circumstances that need to be matched before you apply for a budgeting loan. To qualify for the loan your terms are set and you can apply for the loan.

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Steps Involved In Applying For Budgeting Loans

May 24

Getting a budgeting loan is pretty much easier than receiving a credit loan. But you have to follow various steps before you can receive one. These steps are very important and necessary for the person who is applying for a budgeting loan.

Know Your Eligibility

A person can only be eligible for a budgeting loan when he or she has not been disqualified from Jobseeker’s Allowance under the section 14 of Jobseekers Act 1995. The person who needs a budget loan must also need to get Income Support, income-based Jobseeker’s Allowance. He or she needs to have a salary account which is a proof of his or her payment on account to get the benefits of the loan. Otherwise, he or she will not get the benefits and hence there will be an effect on the loan amount, and he or she may need to pay the loan another way round.

You have to show income support of the last 26 weeks and a maximum of 28 days’ gap will be allowed or ignored if you didn’t receive your salary for that month or you got it late or you left the job and got a new job within 28 days. If you’re applying for the loan with your spouse who has all the documents and is acting on your behalf needs to have the income-based Jobseeker’s Allowance, payment on account of one and income support to get the loan. Finally, when everything has been set. The decision maker will make the final decision whether you should get the budgeting loan or not and how much you will get according to the circumstances.


How Your Marital Status Can Make A Difference?

Yes, your marital status can make a lot of difference when you apply for a budgeting loan. Why? Because there are personal circumstances involved with the budgeting loan. That is being decided whether you are single or married and even if you have children while being married. Then you will be told that there is a maximum amount set for every circumstance which the applicant will be awarded if he or she qualifies for the loan.

To secure the amount of money that is being derived for the applicant has been fixed to a certain amount to ensure that the amount doesn’t exceed its limitations. And then there are other things that you need to look out for that is if you have social fund loans and good transactions which can be responsible for ups and downs in budgeting loan amount.

You can get a benefit on the amount of loan if you are married and parents of a child or children which get you a higher value in amount. If you are married, then also you will be benefited from the amount which you being single will not be the case. So, if you are single you will get the least amount of loan, being married will get you a 1/3 more. And being parents of children will get you 2/3 more of the loan amount.

You should know that if you have a previous loan debt then the new budgeting loan added with that one will decrease the amount of new loan. With that in mind, you can easily apply for loan if you are eligible.

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How to Qualify, Apply for and Get Budgeting Loans?

May 10

Budgeting loans are the best possible loans available for the people who needs a loan at their worst state. This article will help one in understanding that how these loans are helpful and what are the eligibility criteria for getting through with this loan. This can be used as a guide if people really want the best to be achieved out of the budgeting loans. Before we move on to the eligibility, one should have a clear idea of what a budgeting loan actually is?


The Budgeting Loan:

The budgeting loan also known as an advance is the best loan for people who have extremely low income. With these loans, the people can pay up for a lot of stuff and services. These include the basic needs of the people. They can pay for their clothes and accessories as well as basic travel expenses with the help of these loans. They can move to a new accommodation or even rent or advance for a new rent somewhere. The budgeting loans also allow the people to have a maternal or paternal funeral just like they wanted to. One can pay their purchase debts considering the fact that it was already loaned or borrowed.

Eligibility for the budgeting loan:

One must make sure that they do have the following eligibilities fulfilled if they do want to be eligible for the loan.

  • The very first point to be taken care of is the point where they or their partner are qualified for the Jobseeker’s Allowance. This is a very important point to remember. They should know that they can have the loan only until they are qualified for the above-mentioned
  • One needs to have any one of the following as their entitlements. It can be either the Pension credit for the last 26 weeks or the income-based job seekers Allowance or the Income support or the Employment and support allowance.
  • For the budgeting advances, one or their partner cannot have savings worth more than a 1000 pounds. And a budgeting loan will not be approved if the savings is more than 2000 pounds or the age of the person is more than 62 years.
  • Also, if one is single, then they can get their budgeting advances only if they have an earning is 2600 pounds or less. This should also have a minimum time period of 6 months prior to applying.
  • While the same amount may change for a couple. It should be then 3600 pounds.

How is it finally approved?

The decision of finally approving the budgeting loan depends on the owner. They check few very important things and then decide whether or not to approve the loan. They check that what the exact conditions in which one is living are. They check that whether or not one is able enough to pay the loan. There are many important things that they check. The Budgeting Loan number will help one know more about this particular thing.

This article will definitely enlighten one’s idea of budgeting loans.

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