More about Crisis loan

Crisis loan provides you with financial aid during an emergency or a disaster. Crisis loan is interest free. It will usually be a social fund that provides you with a crisis loan.

You don’t need to be in receipt of benefits to qualify. You can apply for a crisis loan, if you are unable to pay for basic living costs which could result in a serious risk to the health and safety of you or your family. Or if you don’t have enough money to meet your immediate short term needs in an emergency or as the result of a disaster. Also if you are unable to pay for something else; the lack of which may pose a serious threat to the health and safety of your family, you can apply for a crisis loan. Do you think that there will be a serious damage or risk to your or your family’s health or safety with out a loan? Then also you can apply for a crisis loan. If you have been getting a Community Care Grant but you’re moving out of institutional or residential accommodation and don’t have enough money to pay advance rent to a non-local authority landlord, still you can apply for a crisis loan.

So as to apply for a crisis loan, you are expected to be at least 16. Usually, a crisis loan prescribes no set amount. The amount you can borrow will depend on your individual circumstances, any saving you have and also on whether or not you have borrowed from the Social Fund before. The loan is commonly paid directly into your bank, building society or other account provider’s account that you have nominated.

Now about the repayment terms… You are supposed to agree a repayment plan that you can simply afford. If you’re on benefit, the loan is normally repaid weekly out of your benefit payments. You will be repaying only the amount you’ve borrowed. The greatest highlight of a crisis loan is that there is no interest- hassle. Another draw is that a crisis loan does not count as income and will not affect other benefits you are getting.