Benefit Loans.

Apply now and get an instant decision from lenders that consider applicants on benefits. Loans from £300 to £10,000.



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A quick, easy way to get a loan today.

Representative 49.7% APR (variable). Representative Example: If you borrow £2,600.00 over 36 months at a Representative rate of 49.7% APR and an annual interest rate of 41.00% (fixed), you would pay 36 monthly instalments of £126.61. The total charge for credit will be £1,957.89 and the total amount payable will be £4,557.89.

Loans for people on benefits.

If you’re unemployed or receiving benefits you do have options when it comes to getting a loan. You may have heard the term "benefit loan”. This isn’t a specific loan type but a term used to describe loans suitable for those that receive or rely on benefits as a source of income.

Why should I use Choose Wisely to get a loan?

Choose Wisely gives you super simple tools to ensure you get the right loan, at the best rate, as quickly as possible.

What to expect when applying for a benefit loan

As you’d probably imagine, finding a loan whilst on benefits is going to be more challenging than if you had a regular income from employment. Nonetheless, there are plenty of lenders that consider applicants on benefits and for those that are savvy, there are still deals to be had. See you will accept your application with a Choose Wisely Smart Search.

Will I be accepted for a loan on benefits?

Acceptance criteria will vary from lender to lender. However, as a minimum you'll need to be at least 18 years old and be able to demonstrate that you can comfortably afford the repayments.

How much will my loan cost me?

This will vary based on the lender and the period in which you repay the loan.

Is it free to find a loan through Choose Wisely?

Yes Choose Wisely is 100% free to use.

What type of loan can I get on benefits?

Guarantor loan

If you're receiving benefits and looking for a loan a guarantor loan is an option worth considering. You will require a guarantor to support your application and they will be expected to cover your repayments if you're unable to do so. However, in return you will receive an APR of around 40-50%, which although more expensive than that offered by the banks and supermarkets is considerably lower than many other options available to you.

High cost short term loans

A number of high cost short term loan providers will consider applicants that receive benefits. As the name suggests, high cost short term loans are designed for a one off emergency and not for long term or sustained borrowing. Although advertised rates are often north of 1000%, interest is capped at 0.8% per day.

Doorstep loan

Doorstep loans are also known as home collect credit. Doorstep lenders generally pay you in cash and will deliver the loan and collect repayments from your home. When applying for a doorstep loan you will be given a personal agent that we decide whether or not to grant you the loan. Due to the personal nature of this product, they are generally more lenient towards your credit status. Saying this, doorstep loans are an expensive form of credit and should be considered a last resort.

Should I get a loan if I’m receiving benefits?

That’s a good question and really one that only you can answer. Never, ever take out loans or any sort of credit if there is a chance you won't be able to afford the repayments. That will only postpone whatever financial difficulty you’re experiencing and make things worse in the long run, with further damage to your credit file. If you do find yourself in a position where you're struggling to afford basic living costs then borrowing more is not the answer. Instead, there are a number of debt charities, such as that will be able to assist you.

Final word before you apply for a loan on benefits

If you're receiving benefits and looking for a loan then you do have options. It's vitally important that you compare your options before you apply to ensure you're meeting the lender's acceptance criteria. Failure to do will result in you being declined, making your search for a loan even harder. If you have any doubt that you can afford your repayments then don’t apply.

Warning: Late repayment can cause you serious money problems. For help, go to