As per Scope, “Disable people take loans three times more”. It is especially true with short-term personal loans like payday. Despite competitive interest rates and terms, it is popular among users alike. It is a no-brainer as disabled people face issues and emergencies more often than others. It is why around 15% apply for these loans on disability benefits.
As per Disability Act, “ No employer and lender can discriminate against disabled people. Thus, the lender should provide the needed cash assistance if one meets the income and eligibility criteria.”
The disability act safeguards the right of disabled people as it could be harder for them to fetch jobs or an earning mode. It is the reason they seek minimal cash help for disability benefits.
The blog lists other things you should be familiar with before applying for personal loans for people with disability benefits for your short-term needs.
Can I get a guaranteed loan on disability benefits?
Yes, you may get a small loan for disability benefits. If it is the only income source, your options for cash help are limited. Only a few lenders provide loans to individuals with government benefits. The reason is the reliability of the income source. Permanent income from employment grants lenders the assurance of full loan payment contrary to the disability benefits that are temporary assistance.
Even if you get one, you only get a part of what you need in most cases. To support your application, you should provide another income source as well. It can be – part-time income, income from dividends, income from tuition, etc. You may get the loan if you meet the minimum income criteria and age restraint. No responsible lender provides one without initial credit and financial assessment. If you tick all the parameters, you may get a guaranteed loan on disability benefits.
However, lenders follow the rule of helping disabled individuals. A borrower needing cash flexibility should improvise. Analyse the need and urgency before applying for personal loans. You should ensure a clear exit strategy or a plan to pay the loan with the interest payments on the due date.
Which disability benefits do lenders consider as income?
The criteria and disability benefit a lender considers may differ. However, some basic disability benefits may help you qualify for the loan:
- Personal Independence Payment (PIP)
- Universal Credit
- Incapacity Benefit
- Industrial Injuries Disablement Benefit
- Disability Living Allowance
If you receive other benefits like- child tax credit, working tax credit, or fostering allowance, you may get a loan on these as well.
Why you may need extra cash flexibility to meet your needs?
With the government of the UK reducing benefits income after the recession, survival gets challenging. The government often checks the authenticity of the person availing benefits. They may cancel the support immediately if they find it illegal or ingenuine.
Sometimes, you need more cash than you receive from benefits. If you have a part-time job and benefits, you may survive emergencies. However, what if you potentially lack any income source apart from benefits? What if your kitchen backsplash goes haywire?
What if you have the last day to clear your utility bill dues?
What will you do in this case?
Getting quick cash for minimal income is feasible with loans for disability. You do not need to bother your neighbours or friends for a limited sum. Instead, you can get quick cash with disability loans. You can use the facility for purposes like:
1) Additional pay for services
It is a most important aspect that concerns the disabled. Sometimes, you may need additional cash flexibility to meet the vendor’s requirements. You may need it to pay for emergency short-circuit services, groceries, etc.
Moreover, if you travel often, you may not know the exact count per Kilometre. You can use the facility to pay your dues without worrying. Owing to the extra effort, the driver may ask for extra money. One cannot do anything in that. You can apply for the loan online and get the funds within 10 minutes.
2) Housing facilities
If you own a house or a property, emergency expenses can fall upon you in the form of falling ceilings, chipped walls, moss formation, leakage, or broken backsplash. If you are yet to receive your first government disability benefit, the loans may help counter short-term needs. You can use it for any of the renovation purposes. You may not face any additional charges for the needs.
3) Purchase equipment or support system
Disabled individuals may need additional mobility support. The machinery requires constant maintenance and renewal. If you face issues with your wheelchair, change it. Do not risk yourself for the sake of getting the money first. Check out these quick loans to immediately change the wheelchair or amputation device.
4) Clear utility bills
It is one of the best ways to clear your dues. You do not need to leave the comfort to pay the bill or get cash from the ATM. You can get the loan online for your needs. For example, if you need to pay electricity bills, credit card bills, subscriptions, or tuition fees for your child, you can borrow a flexible amount as per your affordability. It will help you release anxiety and save you from additional penalty costs.
Checklist to prepare and improvise before taking a benefit loan
By now, you may be clear about the usage of the loan and the ease of availing it. Here are some aspects you should know to ensure a quick loan approval.
1. Identify the amount you need
Analyse whether you have chosen the right amount to meet your requirements. Pick a lower amount if the interest rates and other costs are high. It will help you avoid additional costs.
2. Mark the date you receive the benefit income
Identify whether you can reduce some expenses by ensuring only survival needs. It will help you ensure flexibility on payments and avoid missing any. Missing a payment leads to additional costs and interest rates that may impact the bottom line. Cut costs and plan the budget before scheduling the repayments.
3. Figure out the personal budget
Identify whether you can reduce some expenses by ensuring only survival needs. It will help you ensure flexibility on payments and avoid missing any. Missing a payment leads to additional costs and interest rates that may impact the bottom line. Cut costs and plan the budget before scheduling the repayments.
Conclusion
You should know a few aspects while applying for personal loans on disability benefits. Identify your circumstances and check whether the loan meets your needs or not. If yes, be conscious of APR and interest costs before signing the agreement.