Loans on benefits

If you’re receiving benefits and need a cash injection, short-term loans for people on benefits are available.

Loans on benefits — do they exist?

From time to time in life, virtually everybody needs some form of loan. That might be to buy a car or simply to settle a bill.

That applies equally in the case of people on benefits.

It is true that when they’re considering a loan application, lenders expect the applicant to have some form of regular income. However, that doesn’t necessarily mean the same thing as a salary or wage. That’s because some lenders will also take into account regular income in the form of benefits.

That means that it may be possible to access loans when on benefits in situations such as where you have hit an unexpected snag in your budgeting or need to spread the cost of a large purchase over several months.

People often confuse loans for benefits with bad credit loans, but they are not the same thing. Being on benefits doesn't necessarily mean you have poor credit or that you're a high-risk borrower, and many lenders certainly won't view your application that way.

Whatever the circumstances, you're welcome to apply for loans today, on benefits or otherwise.

Get £100 to £3,000 paid out by 11:10 pm

Apply Now
(It won't affect your credit score)
Representative 669.35% APR (variable)
View example
verified_user FCA: 742221
visibility ICO: Z3495700
lock 256-bit SSL

How loans for people on benefits work

Most lenders want to say yes to loan applications. However, assuming you are using licensed lending organisations (which should always be the case), the lender will have a legal duty to protect your interests by ensuring they do not lend you money that you will struggle to repay. Of course, they also need to protect their own interests by only advancing sums in situations where they believe there is a realistic prospect of getting their money back.

Why income matters

It should come as no surprise then that lenders want to see evidence that you have regular money coming into your household. Note that they may be willing to take into account other household income or income that someone else is receiving if they agree to act as a guarantor for your loan.

Some specialist direct lenders will also consider any money you may have coming into your household from sources such as housing, unemployment, disability or other regular benefits. They are all forms of regular income and they may be able to help you to secure loans on benefits from direct lenders.


Don’t worry, you won’t be asked to provide lots of detail as to why you need the money or what you plan to spend it on.

Most lenders will consider that to be your business and not theirs. So, whether it is an unexpected bill for car repairs or a bargain on a new washing machine, you can use this type of lending product to help.

Periods and amounts available

In the UK, loans for benefits are typically available for sums of anywhere between £100–£3,000.

You’ll typically be able to select a repayment period of anywhere between 1–24 months.

Of course, you should remember that the longer you take to repay a loan, the more it will cost you in overall terms.


If your application is approved, direct lenders may be able to get the money into your bank account within a few hours or possibly just a few minutes.

That assumes though that your own bank can process the transfer that quickly. Most can but some may be a little slower!


This is typically a simple online process. No forms, no fuss, no in-depth meetings or debates.

A few basic details about yourself is all that’s required.

You’ll get a fast and possibly near-instant response.

Get your personalised quote

Apply Now
(It won't affect your credit score)
Representative 669.35% APR (variable)
View example

Why you'll love Instant Lolly

Flexible borrowing — choose from a large range of short-term and payday loans.

Flexible borrowing

Choose the most suitable loan amount and term for your needs. We provide loans from £100 to £3,000 over 1 to 24 months.

High acceptance — great approval rates for people with good and bad credit.

High acceptance

Fill out one short application form, and we will ensure your details reach all the right lenders for the best chance of approval.

Fast funding — instant decisions and speedy money transfers guaranteed.

Fast funding

Receive a decision in seconds, and get money sent to your bank account as soon as 15 minutes after approval.

Online convenience — access the best UK direct lenders in one place.

Online convenience

Apply securely online 24 hours a day, seven days a week — via mobile, desktop or tablet. Oh, and it's FREE too!

On benefits? Here's how we can help

Although online loans for people on benefits are available, they’re typically offered by specialist providers who will be willing to consider income sources other than wages and salaries. It’s important to note that, unfortunately, many ordinary lenders won’t.

There’s little point applying to lenders who won’t be interested. Not only will it waste your time but it could also harm your credit score if you make too many applications in a short space of time.

The good news is that you can hugely reduce the risks of that happening.

Here at Instant Lolly, we have extensive experience of the online loans marketplace in the UK. We know exactly which lenders might consider applications for loans when on benefits and can connect you directly with those companies.

That will save you time and even more importantly, increase the chances of you getting that desperately needed cash into your account quickly.

We’re here to help!

Can I apply?

To apply you must:

  • be at least 18 and a permanent UK resident;
  • receive a regular income, such as a wage, a pension or benefits.

You will also need:

  • a mobile phone and email address;
  • a UK bank account with a debit card.
We respect your privacy and will never use, sell or share your information for marketing purposes.

Not sure if you'll be accepted? Check if you can get your chosen loan (in under 5 minutes)

(It won't affect your credit score)
Representative 669.35% APR (variable)
Representative Example: £250 borrowed for 30 days. Interest charged is £60.00. Total amount repayable is £310.00. Annual interest rate of 292% (fixed).

Important Information

If you do not make your minimum repayment by the agreed upon due date, you may incur additional charges and penalties. If you are having problems paying, please call your credit provider. For other sources of assistance, visit; call the Step Change Debt Charity on 0800 138 1111; or National Debtline on 0808 808 4000; or visit; or visit your local Citizens Advice Bureau.

Loan approval: All loan offers are subject to lender final approval. Approval/transfer times vary by lender. Not all lenders may be able to transfer funds in 15 minutes. Approvals/transfers may take longer for applications processed outside normal working hours. If your bank does not support faster payments, it may take longer for funds to reach your account.

Credit checks: When assessing your eligibility for a loan, lenders will carry out a soft search; only you can see them on your credit report and they have no impact on your credit rating. If you accept a lender's loan offer, they will perform a hard credit search which will be visible to any company searching your credit report for 12 months.

Instant Lolly does not charge customers a fee for using its services, but it receives a commission from lenders or other brokers following an introduction through this website.