Crisis Loan

The modern fast paced lifestyle has meant that borrowing is on the increase. The pressure to keep up with modern trends and lifestyles means there is an ever growing need for people looking to borrow some money to get them through to their next pay cheque. For some people they will be looking to get their hands on the latest iphone or playstation console that they simply cant go without. However for other people borrowing money can be a lot more serious especially for people in crisis.

The Crisis Loan

A crisis loan is provided by the social fund for people who are in desperation and have no other alternatives to attain money. This type of borrowing is for the low income or unemployed and the money is provided for absolute essentials such as furniture like beds, clothing or rental payments. The money borrowed must be paid back just like any other type of loan.

Eligibility

To be eligible to apply applicants must be at least sixteen years of age.  The loan will be interest free and if you are on benefits will be repaid weekly out of your benefit allowance. You don’t have to be on benefits to apply however you must have no other means of cash or savings that you could have used. Your requirements for the cash must be due to an emergency such as fires, flooding or other types of emergency that have left you in desperate need of some money quickly. The crisis loan must be your last resort and the only way you can prevent further risk or health issues to yourself or your family.

How Much Can You Borrow?

There is no set amount for borrowing with a crisis loan as each situation will be different and have unique requirements. Some of the factors that will affect your lending amount include:

- Whether you have taken a loan from the social fund previously
- Your circumstances and the health risks posed by the current crisis
- If you have any savings or bank accounts with money in

How To Apply

You can apply for a crisis loan by visiting your local benefit centre will you be able to get the appropriate forms and more advice on your eligibility to apply.

Alternatives To The Crisis Loan

Many people who have been refused a crisis loan because their circumstances aren’t deemed serious enough are turning to the payday loan. This type of borrowing is a lot less stringent to apply for and often does not require credit checks. You will have to be in employment as the short term loan you take out will have to be paid back when your next pay cheque arrives. The lender may ask for details of your current residential status and they will only let you take out one loan at a time. There are now a variety of ways to apply such as online, iphone applications and you can now even apply for a text loan by sending an sms from your mobile phone. When you take out any type of loan it is a serious commitment that has to be paid back and should be taken seriously. If you are in any doubt about your ability to pay back your borrowings you should reconsider taking out a loan before you apply.