Budget loans are interest-free. They are welfare crisis benefits meant for vulnerable claimants on a low income. They are administered by the Department for Work and Pensions through the Social Fund. They come in very useful to buy essentials at home as one continues the search for a job. They can also be used to buy furniture, clothes and footwear. Budget loans are also used to make advance rent payments and meet the cost of moving homes. For other poor credit loans such as guarantor loans visit Badcreditsite.co.uk for info.


The amount you will get for your budget loan depends on several factors. They depend on the number of people in your household and any outstanding amount owed to the Social Fund. The amount also depends on your ability to repay the loan. It also depends on your savings. Urgency of the need and existing health problems that may be either personal or your family’s are not considered. The repayments are decided upon at the time the loan is agreed. The repayments are taken out of one’s benefits. However, if one stops receiving benefits they have to arrange for another way to repay. Normally the budgeting loans should be paid back within 104 weeks.


Budget loans can be applied for online. If you choose to carry out an online claim, it will take 20 working days for it to be processed. It is important to include your phone number so that you can receive a progress report by text message. Once you accept the loan offer it further takes another 12 days to finally get the money in your bank account. If you decide to carry out a manual application, you will still require to download a claim form. The Social Fund will send out as pre-addressed envelope alongside the claim form. One is then required to send the form to that address after filling it out.

The process is quite lengthy. First you fill in the form then you return it. Your form will go into a sorting centre and from there it will be sent to the processing centre. Once it gets there it will get logged. Your form will then be placed into current work. It will then get assessed and an offer will be sent to you. You are then expected to return the offer. Your offer will be sent to a sorting office and subsequently get sent to a processing office. An acceptance letter will then get logged. Your acceptance will be put into current work. The acceptance is then processed and finally the payment is issued.

After all those steps if the application was filled in incorrectly it is sent back. Therefore, one needs to be very keen when filling it out and also go through it several times before posting it. There are some few other things that you can do to try and speed up the process. Ensure that you sign the document, enter the date and include your national insurance number. Make sure you send it to the right place so it doesn’t get lost in the mail and take even more time to get to the correct destination. One may also opt to replace the 2nd class envelope with a 1st class envelope so as to reduce postal delays. You may also choose to deliver it personally. Those are a few hacks that can help cut the time it will take for the money to get into your bank account.