Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
Yes, you can still get a personal loan even if you’re currently claiming disability benefits. However, you may find your options are more limited than someone with a regular salary or income, especially if your sickness or disability benefit is your only source of income. Lenders want to be confident that you can repay your loan and may view you as more of a risk if you only rely on benefits.
As with any personal loan, the best way to get a loan while on disability benefits is by having a stable job and regular income, as well as a good credit history. While there are loans available for those with bad credit, you’re less likely to get approved for a loan if you have poor credit and you’re also claiming benefits. If you are accepted, you’re likely to pay a much higher rate of interest.
You may be able to get a short term loan or payday loan if you’re on disability benefits. But this is not recommended, as short term loans are generally very expensive. The best way, therefore, to get a loan on benefits is by ensuring you have a steady income and good credit score before you apply for a loan.
Not in itself. Lenders are legally obligated to treat you just like any other borrower, so they can’t just refuse your application because of your disability. Anti-discrimination laws apply. Lenders can refuse an application because of factors like affordability or credit history.
If the problem is your credit history, you may want to take a look at our bad credit hub, which features a series of guides on how to deal with bad credit and how to improve your credit score. As a rule of thumb, the first thing to do is understand why your credit score isn’t good. Sometimes, it may simply be that you don’t have much of a credit history yet.
This depends on the lender, but in general, you can expect the following benefits to be accepted:
Before going for a loan, consider whether it’s actually the smartest choice for your finances. Try thinking about:
Compare different financial products before applying to make sure you get something that works well for you. You may want to consider one of the following:
Regardless of what option you choose, you should always make sure that you can afford to repay what you borrow. If you fall behind on your payments, you can damage your credit score further, which will make it even more difficult to get a loan in the future.
A disability could indirectly affect which deals you can get your hands on, because some lenders might not be keen on an income supported by disability benefits. If you have bad credit, this can also make it harder to bag a competitive rate. If that sounds like you, you may find that if you’re accepted for credit, you get offered a higher interest rate or a lower amount. Keep in mind that the rate advertised by lenders is generally a “representative” APR – which means that not everyone will get it.
As well as the options mentioned above, you could also consider the following:
It’s still possible to get a loan if you’re on disability benefits, but your options will likely be more limited, and it could be more expensive. That’s why it’s well worth considering all your borrowing options before you agree to anything. If you’re struggling financially, it’s worth speaking to a debt charity, such as StepChange and Citizens Advice, for fee-free debt advice.
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Hi, I am currently receiving ESA and pip benefit. Can I get a loan?
Hi Kirk,
Thank you for contacting Finder.
Applying for a loan even if you are receiving State Pension is not impossible. You may compare the Lenders at this page as they can provide you the loan option that you need.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
After comparison, you may click the green “Go to site” button to be redirected to the Lender’s site and complete their online application.
I hope this helps.
Please do not hesitate to reach out again to us if you have additional questions.
Cheers,
Ash