Loans are designed to allow people to quickly gain access to temporary money, directly from a lender, in order to get through certain financial situations, with the promise that the money will eventually be paid back with interest.
There are so many different types of loans available on the market, each of which is designed to help specific groups of people with specific financial needs.
However, because loans are a potential risk, and it involves borrowing money, those that are lending the money out want to be sure that the money is entering safe hands.
This means that there are certain limits on certain loans, making them inaccessible to people that don’t meet specific criteria.
Do you meet the criteria for a budgeting loan, but now you’re wondering whether it’s possible to have multiple of these loans in a single year?
Then make sure you read on down below because we are here to show you everything you need to know!
What Is A Budgeting Loan?
Before we look deeper into how many budgeting loans it is possible for an individual to have in just one year, it would be pertinent to make sure that we know exactly what a budgeting loan is.
Budgeting loans are designed to help individuals to pay for unexpected expenses for essential things, such as furniture, household goods, clothing, or things such as bills and rent payments.
Such loans are designed to help those that are in disadvantaged communities or those that are in sticky financial situations to pay for essential items.
How Many Budgeting Loans Can I Have In A Year?
There is actually no limit at all to the number of budgeting loans that you can apply for in a single year.
However, every time you need to access a budgeting loan, you will need to reapply as if applying for the first time.
Every time you make a budgeting loan application, your application will need to be reassessed with the same criteria as ever.
As well as this, the lender will also assess any outstanding loans you currently have, especially any prior budgeting loans that you have yet to pay back.
Thus, it is best to make sure that you fully paid back every budgeting loan you have before applying for another, in order to save yourself the potential despair of being denied.
How Do You Become Eligible For A Budgeting Loan?
As with any loan, there are a few criteria that you must make sure that you meet in order to be eligible for a budgeting loan.
In order to be eligible for a budgeting loan application, you need to ensure that you are already earning benefits such as:
- Pension credit
- Income support
- Jobseeker’s allowance
- Employment and support allowance
However it is not enough just to be claiming these, as you need to have done so for 26 consecutive weeks, and without breaks exceeding 28 days.
How Much Can You Borrow With A Budgeting Loan?
How much you can borrow with a budgeting loan will depend on a few things.
The most important thing that can affect the amount you can borrow is your current living situation.
If you are applying for a budgeting loan as a single person, then the maximum amount that you can claim from a budgeting loan is £384.
If you are claiming a budgeting loan as part of a couple, then the maximum amount of money that you can claim is around £464.
If you are claiming a budgeting loan for use with a family of children, then the maximum amount that you can claim is around £812.
The minimum amount that an individual can claim on a budgeting loan is around £100, which means that it is possible to ask for specific amounts of money between the minimum and maximum range to suit an individual’s financial needs.
This can make it easier to manage finances and the potential debts associated with loans.
How Do You Apply For A Budgeting Loan?
If you like in the United Kingdom, you can head to the GOV.UK website, and use the online application form to make your application.
This is a quick and easy way to make your application and allows the process to get started right away, as the relevant authorities can get right to work on assessing your application.
There are also official forms that you can download, print off, fill in, and then send in the post to the attached address to make your application.
Using this method may mean that it will take much longer to hear back about your application, but is a great option for those with limited access to the internet.
In general, you should expect to hear back about your budgeting loan application within 7 days if applying online, and within 21 days if applying via post.
Luckily, if you are someone that needs to make frequent use of budgeting loans, there is no official limit on how many can be accessed by an individual in a single year.
However, every time a budgeting loan is needed, the individual will need to follow the same process, and they will need to make sure that prior loans have been paid back.
Frequently Asked Questions
Can You Get 2 Budget Loans?
You cannot gain access to a second budgeting loan until you have paid back all debts on the first budgeting loan.
This helps to prevent you from incurring significant debts that you cannot easily pay back.
Is There A Limit To How Many Budgeting Loans You Can Have?
No. There is no limit to the number of budgeting loans you can apply for. But you must make sure that each budgeting loan is fully paid back before applying for another.
Can You Get 2 Loans In The Same Year?
Yes. Many lenders will be willing to lend out multiple loans in the same year. However, they may not do so if any prior loans are still yet to be paid back.