Sudden emergencies can arise at any time in a person’s life. To mitigate them, the UK government can help you find better loan options. If you have a situation right now, and you are reading this, ensure you read it carefully to understand how you can seek help in times of need.
What is Social Fund Loan?
The social fund loan is a kind of loan that allows people to meet several requirements. They help to meet budgeting expenses that low-income groups, in general, cannot meet. Winter Fuel payments, cold weather payments, and funeral expenses are such unforeseen circumstances that come up.
You can get short-term or budgeting advances and also budget-based loans. These loans tend to people’s issues and help them resolve them within a specific period. They cover clothing, footwear, household equipment, footwear, and home improvement materials.
They will also help you cover traveling expenses within the UK, for starting work if you need any help, bearing maternity expenditures, and improving, maintaining, or even helping to secure your home.
Who is Eligible?
To be eligible for the Social Fund Loans, you must fit one of the criteria.
- In the past 6 months, if you have taken income support.
- Those who take income-based jobseeker’s allowance.
- You obtain employment and support allowance
- If you are on pension credit.
- Those who are on universal credit cannot get a budgeting loan.
- If you get a new style job seeker allowance or new style employment
- You are part of industrial action
- For those who owe £1,500 for crisis and budgeting loans
What are Social Fund Loan Application Requirements?
For filling up the social fund loan application, you will need the following;
- Your income slips for the past 3 months if you hold a job even if it does not pay enough.
- Add the type of program under which you receive money from your county.
- Include your Insurance number and other details.
How to apply for a social fund loan application?
You can either apply online or offline for a social fund loan.
If you apply online, you can either choose email, text message, or letter as a means of correspondence.
For those applying via offline mode, fill in the SF500 form. The form might take seven days to arrive after you call the social inquiry line.
Social Fund Enquiry Numbers:
- Try 0800 169 0140 or 0800 169 286.
- You must try 0800 169 0140 if you are a specially-abled individuals
- Adding information would mean including personal information.
- Include educational and economic details in the segment as given.
- Add the plan under which you receive benefits from the government and the fund.
- After you have added all the information, submit the social media fund application.
You will get monetary support and the loan amount you need has to be pre-decided. Take the amount you need and then spend it on the most essential stuff. After you are done, you can comfortably pay back the amount.
FAQs (Frequently Asked Questions)
How much is a social fund loan?
You can apply for an amount of £100 and £1,500. The monetary support is given based on the following conditions.
- The first factor is the number of individuals in your family.
- Those who owe a part of some other social fund loan will get less compared to those who have never applied for a loan.
- They will check if you can repay the loan.
- It depends on your savings as well.
The loan will not consider your urgency or any health-related issue.
Is a budgeting loan a social fund loan?
Yes, they are social fund loans and are primarily interest-free in nature. Those who wish to get certain income-related benefits can apply for this kind of loan.
Social fund loans can save you from instant money needs. You can use the loan for any purpose as they are multi-purpose loans. Those who wish to take their loans must read about the loan first. This is reference material for people who look forward to taking this loan type.