Loans For People On Benefits – Direct Lenders In UK, No Upfront Fee

Looking for loans for people on benefits? You’re at the right place. This article features direct lenders of loans for people on benefits in UK. Read on!

The UK benefits system provides financial support and physical help for unemployed people or people looking for job. It also provides people with additional income when their earnings are relatively low, or they are bringing up a child, are retired, caring for someone, are ill or disabled.

Benefits and services for people who can work (i.e Jobseeker’s Allowance), are dealt with by the government’s Jobs and Benefits offices.


These offices can help you:

  • find work
  • start your own business
  • manage on a low income

Can I Borrow Money If I’m On Benefits?

It doesn’t matter if you’re on benefits you can still borrow money. What many lenders look at is your individual circumstances, and if you can afford to repay your loan while maintaining your priority bills (rent, council tax, etc) and any other debt repayments.

If you can do all these, then there’s nothing stopping you to apply for a loan.


Here’s A List Of Direct Lenders Offering Loans For People On Benefits In UK

  • Now Loans

With Now Loans, It’s possible to apply for a loan while receiving benefits. Now loans evaluates a potential borrower and a whole lots of factors come into play that could influence their decision in accepting your application.

Besides your credit score, they may also look at your employment status and current income, also what you plan to do with the money, and any relevant thing. So be ready to present them with whatever document they ask for if you can.

  • Fair Finance

At Fair Finance Personal Loans, they consider your loan application even if you are on benefits. Even if you have been rejected for a credit application in the past because of your income profile, they might still consider your application.


People on benefits can borrow money from £100 to £1,000, and can repay over a 6 months – 18 months loan tenor. You can choose monthly, biweekly or weekly loan repayment system to make repayment easier and more convenient for you.

  • UK Government Budgeting Loan

The UK Government gives out benefits to citizens and also you may be eligible for a Budgeting Loan if you’ve been on certain benefits for 6 months.

You only have to repay the exact amount you borrowed without interest, and repayments are taken automatically from your benefits.

  • New Horizons Loan

At New Horizons you can apply for loans from £50 – £5,000 even when you’re on benefits and repay over 3 – 36 months loan tenor. They do everything possible to simplify the process of applying.

When you apply for a short term loan at New Horizons, they have the responsibility to do some certain checks before approving your application.

  • PayDay UK

If you are not working and are on benefits, you may still be eligible for a loan at PayDay UK. Use their eligibility checker today without ruining your credit score. PayDay Loans for People on Benefits starts from £50 to £5,000.

  • Cash Lady

Cash lady is a reputable online credit broker, they make their loan application very easy and flexible. They also offer loans for people on benefits. Although, there’s no guarantee that your loan application will be approved.

Final Words On Loans For People On Benefits

You can apply for loan even when you’re on benefits. Some lenders are willing to recognise some forms of benefits as your income such as Personal Independence Payment or Disability Living Allowance. While many other forms of benefits can also be considered.

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