Getting a loan when you're on low income

If you have a low income it can be difficult to find a loan, just when you need it the most. But there are options out there for you if you know where to look and how to approach them. This guide will help you through the process of securing the loan you need that fits your personal financial circumstances.


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Representative 824.7% APR. Representative Example: If you borrow £250 over 6 months at a Representative rate of 824.7% and an annual Interest rate of 248.19% p.a. (fixed), you would pay 6 instalments of £81.41. The total charge of credit will be £238.46 and the total amount payable will be £488.46.
Choose Wisely is a trading style of Choose Wisely Limited and is a free to use price comparison website. Choose Wisely Limited is authorised and regulated by the Financial Conduct Authority as a credit broker not a lender, firm reference number 730574 and is registered with the Information Commissioner’s Office number Z3106681.

A quick, easy way to get a low income loan today.

  • Borrow from £300 to £10000.

  • Choose between lenders who have accepted your application.

  • Absolutely no fees, ever.

Representative 824.7% APR.

How to get a low income loan in 3 simple steps.

Affordability assessment.

1 form - takes 2 minutes to complete and your data is 100% secure.

Compare products.

Choose from lenders that have accepted your application.

Speedy finance.

If approved, the cash can be in your account in as little as 15 minutes.[†]

Table of contents

Written by Andrew Freelander
Read time: ~5 mins
Published: 10th March 2020 Updated: 15th September 2020

How to get a loan with low income

Low income payday loans and low income bad credit loans are often sought to give you the money you need to buy essential items, for example, to cover car repairs or a broken boiler and less about larger loans used for debt consolidation.

When you apply for low income loans UK lenders will be looking very carefully at whether you can afford to make the loan repayments, taking into account your other financial commitments. They need to make sure that when they offer loans for low income they do not lend you more money than you can afford to repay.

We can help you find the right low income loan quickly and easily without the need for extensive or time-consuming credit checks. Simply follow our three step process for getting accepted:

  • Fill out our secure online application form in less than five minutes
  • Choose the right loan for your circumstances from lenders that have accepted your application
  • Finalise your application with your chosen lender and, if accepted, the funds will arrive in your account within the hour

Where do I get a low income loan?

People with small amounts of money coming in can still find lenders prepared to lend low income personal loans. Whether or not a loan is offered will depend on the lender's assessment of your credit score and the likelihood that you can pay back the money you are lent. Loans for bad credit and low income are possible but are likely to have a higher interest rate and stricter affordability criteria.

You should always check that the lender you apply with is authorised by the FCA. All of the lenders on Choose Wisely appear on the financial services register.

Alternatives to low income loans

There are alternatives which may be available:

Credit Union loans

Credit unions are set up to benefit their members. You may be able to join your local credit union if you live in their area, or you could join a credit union linked to your employer, housing association or trade union. Some people may find that credit union loans are possible even if they do not qualify for mainstream low income loans.

Government Budgeting loans

The government budgeting loan and advance scheme give interest-free loans for essential items. To qualify, you will need to be on one of the specified income-based benefits. This scheme provides funding if you need essential furniture or white goods for your home that you cannot pay for in any other way. You will not be able to use the scheme if you have any savings or any other way of paying for the things that you need. These loans will be for a maximum of £1,500 and you can apply at your local job centre or on the website.

Get the right bad credit loan

Need more information on bad credit loans and how to get accepted?

Low Income Loans FAQ's

What are other ways to get financial help when you’re on a low income?

Government Grants, approaching local charities for help (Charity-run website Turn2us has an easy-to-use grant search), claiming benefits or applying for a jobseeker's allowance.

How do I understand if I qualify for a low income loan?

Apply via Choose Wisely and we will communicate with multiple lenders on your behalf, and return results that show which lenders have accepted your application in principle.

Can I get a low income loan if I’m receiving benefits?

You may be able to get a low income loan even if you’re receiving benefits from the government, however each application is dependent on individual circumstances and acceptance is subject to a lender’s hard credit check when an application has been submitted.

Written by
Andrew Freelander
Brand & Content Manager at Choose Wisely

Andrew joined Choose Wisely 5 years ago, originally working in a design capacity to make sure the website was simple to use. Most notably he worked with the Consumer Finance Association to design the comparison table of choice for High-Cost Short Term Finance products.

The quickest way to find the best low income loan for you.

No obligation. 100% secure.

Important Information.

All of the information in this guide is correct at the time of writing.

Rates shown are quotes based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 3.9%APR to a maximum of 1575%APR Representative and loan repayment periods range from 3 to 60 months.

[*][†] Once accepted, your loan can be transferred to you in as little as 15 minutes. The time that it takes for the loan to show in your bank account will depend on your lender and your bank.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
Your score can be accessed for free via any of the main credit reference agencies such as Credit Karma, Clearscore or Experian.

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