There are all kinds of different loans, each of which offers different kinds of benefits to those receiving them.
Loans can be used to help individuals or organisations to navigate their way through difficult financial situations, and help to give them direct access to finances that can help them in numerous ways.
One of the most common types of loans that can be found in the UK is the budgeting loan, which helps individuals to pay for unexpected expenses that pop up in everyday life.
But in order to gain access to a budgeting loan, the individual needs to actually apply for the loan. But how does that work?
Are you reading this now because you want to know how to apply for a budgeting loan?
Then you should look no further because today we are going to take a look at how you can do exactly that, and what it involves.
Read on down below now to get started and find out all the answers you seek!
How Do You Apply For A Budgeting Loan?
There are actually a number of ways that you can apply for a budgeting loan, each of which seeks to make the process as simple as possible.
The easiest way to apply for a budgeting loan is to apply for it online.
Via the GOV.UK website, you can directly fill out a digital application form which allows you to fill in all of the relevant forms and attach all of your relevant documents.
This is easily the best method to opt for because it sends your information directly to the relevant authorities, allowing your application to be reviewed as soon as possible.
Once your online application has been sent off, you will also be given the option to choose how you will be notified of your application’s result.
You can choose to receive the result via email, text message, or via letter. Of course, receiving the result via a letter will significantly add to the time you will have to wait before receiving your money.
If you have limited access to the internet, don’t worry, because you can also directly apply for the loan via the post, by accessing the paper form which can be found on the GOV.UK website.
This form can be printed out, and then you can personally sign it and fill it in with all of the relevant information before then posting it to the address listed on the form.
If you do not have access to a printer, then you still need not worry, as you can also call the Social Fund Enquiry Line at 0800 169 0140.
Through this phone line, you will be able to directly request that the form be mailed to you. When doing this, the form will arrive with a separate envelope for you to post the form back once you have filled it in.
GOV.UK prides itself on its accessibility, as it also offers a service to discuss receiving budgeting loan forms via a British Sign Language video call, should you be hard of hearing.
How Long Does It Take To Apply For A Budgeting Loan?
The amount of time it takes to make a budgeting loan application and then receive a decision on the application can vary depending on the method you take to make the application.
If you apply for a budgeting loan via the GOV.UK website, then you can expect a decision on your application to be returned to you within 7 days at the most. This will either be sent to you via email or text message.
However, if you chose to receive your application decision by post, then it may take up to 21 days at most for the decision to reach you in the post.
If you chose to mail in your application, then you should add an extra 21 days to this time frame, and if you chose to have the form posted to you to then be filled in, then you should add yet another 21 days to the time frame.
To Wrap Up
There you have it.
Luckily, applying for a budgeting loan is actually incredibly easy, and should be very stress-free, as it can easily be done online, which allows your application to be quickly reviewed, allowing you to receive a decision on your application in as few as seven days, or even less.
However, GOV.UK recognizes that access to the internet is a luxury for some, so they also provide numerous services that allow applicants to access the necessary forms and send them off via the postal service.
These forms can be accessed online or can be specially requested via a telephone call, or even via special calls designed for those that are hard of hearing.
Of course, it is best to apply for a budgeting loan online, as you will hear back from the relevant authorities regarding the decision of your application much quicker, but access to postal applications makes access to budgeting loans as widespread as possible.
Frequently Asked Questions
Can I Get A Budgeting Loan The Same Day?
Unfortunately not. In order for you to receive a budgeting loan, you must first make a request for one, and once your request has been made, your request will then be assessed by a relevant authority.
Assessing your request takes time and effort, thus you should expect to wait some time to hear a decision about your request.
However, the latest you should expect to wait if applying online is around seven days!
Why Would You Be Refused For Budgeting Loan?
One of the most common reasons that people find themselves being refused a budgeting loan is that they have yet to pay back any of their existing debts on any prior budgeting loans.
You cannot have two budgeting loans simultaneously.
What Can You Ask For A Budgeting Loan For?
Budgeting loans can be used for things such as household essentials, clothes, and rent.