Budgeting is very important in our day to day life. It is essential for us to have
While budgeting, you will definitely incur expenses you least expected to incur. Here is where budgeting loans come in handy. You will obviously have to pay it back but its beauty is that it is totally free of interest. The Social Fund has made life easier for many by availing them with budgeting loans.
Budgeting loans provide us with definite though finite financial security. It would save you a lot of trouble especially when you are operating under a tight budget. You will need to consider the time factor when applying for this loan to evade last minute rushes that never end up well.
With this in mind, you should be fully aware of the length of time it takes for you to be issued with a budgeting loan. How long does it take to get a budgeting loan? Before I answer this vital question, I would like you to know if it is really worth a try and if so, are you are eligible?
How important is a budgeting loan?
The Social Fund has made it possible for us to claim tons of benefits through a budgeting loan. It is all you will need to claim particular benefits thus covering extra costs.. With budgeting loan, you can pay for home security, home maintenance, maternity costs, household items, clothes and even footwear.
You will have to pay it back for most of the benefits covered except for a few cases. You can claim some benefits which you won’t have to pay back. This includes the Local Welfare Assistance, the Funeral Payment and finally the Sure Start Maternity Grant. A budgeting loan is definitely worth considering
Are you eligible?
Before you worry about how long it would take for the Department of Work and Pensions to give you a budgeting loan, you must know if you are eligible. First and foremost, you cannot apply for a budgeting loan when you have already applied for the universal credit.
This is because, a budgeting loan is only but an extra amount of Universal Credit specifically meant for helping its applicant meet special expenses as the ones mentioned above. Secondly, you must have had the following benefits for at least six months: Income support, Income-based allowance (jobseeker’s Allowance) and also Income-Related Employment.
We have understood how important a budgeting loan is and whether you can apply it or not. Once you are eligible to apply for a budgeting loan, you can apply through the internet its portal at gov.uk or through an online form.
You will then be able to apply for the loan .You can apply for a loan up to 812 pounds if you are claiming child benefit with your partner. The loan will then have to be approved by the Department of Works. Your information will be processed for around 3 weeks by the Social Fund.
The processing of your loan begins on the day you apply it.The DWP will reply after 14 days after you had applied.If you are qualified, the DWP will start processing your funds. It will take about a week or two for the loan to be sent to the bank. The entire process will roughly take 3 to 6 weeks.