Compare loans for people on disability-related financial support

Your disability shouldn't get in the way of you getting credit. Much depends on your personal circumstances, but you have options.

See your personalised rates

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Name Product Finder score Total Payable Monthly Repayment Representative APR Link
Novuna Personal Loan
4.5
★★★★★
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 7.4% p.a. (fixed). Representative APR 7.4% and total payable £11,142.00 in monthly repayments of £309.50.
My Community Bank Personal Loan
4.5
★★★★★
Check eligibility
View details
Representative example: Borrow £5,000 over 48 months at a rate of 24.9% pa (fixed). Representative APR 27.9% and total payable £7,939.24 in monthly repayments of £165.40.
Fluro (formerly Lending Works) Personal Loan
4.0
★★★★★
Check eligibility
View details
Representative example: Assumed borrowing of £7,500.00 over 48 months at 17.9% APR representative. Monthly cost of £214.79. Total amount repayable of £10,309.78. Interest rate of 16.6% p.a.(fixed) and total fees of £150.00. Available for loan amounts between £5,000 - £25,000.
Lendwise
3.5
★★★★★
View details
thinkmoney Personal Loan
1.5
★★★★★
View details
Representative example: If you borrow £29,100 over 12 years, initially on a fixed rate for 5 years at 8.885% and for the remaining 7 years on the Lender's standard variable rate of 9.285%, you would make 60 monthly payments of £375.53 and 84 monthly payments of £380.29.
Tesco Bank Personal Loan
4.5
★★★★★
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.5% p.a. (fixed). Representative APR 6.5% and total payable £11,003.04 in monthly repayments of £305.64.
Zopa Personal Loan
4.0
★★★★★
View details
Representative example: Borrow £1,500.00 over 3 years at a rate of 22.9% p.a. (fixed). Representative APR 22.9% and total payable £2,028.60 in monthly repayments of £56.35.
Barclays Existing Current Account Loan
4.5
★★★★★
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.3% p.a. (fixed). Representative APR 6.3% and total payable £10,972.08 in monthly repayments of £304.78.
Lloyds Bank Existing Customer Personal Loan
4.0
★★★★★
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.7% p.a. (fixed). Representative APR 6.7% and total payable £11,034.00 in monthly repayments of £306.50.
Plend personal loan
3.5
★★★★★
View details
Representative example: Borrow £8,000 over 48 months at a rate of 16.66% p.a. (fixed). Representative APR 17.99% and total payable £11,013.12 in monthly repayments of £229.44.
Tesco Bank Clubcard Personal Loan
4.5
★★★★★
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.1% p.a. (fixed). Representative APR 6.1% and total payable £10,941.12 in monthly repayments of £303.92.
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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.

Can I get a personal loan if I’m on disability benefits?

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.

Personal loan jargon explained

  • APR. The annual percentage rate (APR) includes the interest rate and fees to give an indicator of the annual cost of a loan. However, lenders only have to give the advertised APR to 51% of borrowers, and the remaining 49% may end up getting a higher rate.
  • Interest rate. This is the percentage amount charged as interest on a loan and can be either fixed or variable. A fixed rate stays the same, while a variable rate can go up or down over time.
  • Unsecured loan. An unsecured loan doesn’t require you to use an asset, such as a property or vehicle, as security against the loan.

How can I get a loan while on disability 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.

Will my disability impact my chances of getting 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.

Which disability benefits count as income?

This depends on the lender, but in general, you can expect the following benefits to be accepted:

  • Personal Independence Payment (PIP)
  • Disability Living Allowance
  • Universal Credit
  • Incapacity benefit
  • Employment and Support Allowance
  • Industrial Injuries Disablement Benefit

Things to consider before getting a loan

Before going for a loan, consider whether it’s actually the smartest choice for your finances. Try thinking about:

  1. What you need the money for. In some cases (for example, if you need to buy a car or to adapt your home to make it accessible), you may be entitled to some extra help from a government scheme. Make sure you check that out before taking out a loan. Moreover, if you need money to pay off your monthly bills or some other regular expense, taking out a loan will only worsen your problem instead of making it better. Loans are generally a good idea for big or unexpected expenses, but they can’t help you with your day-to-day spending.
  2. How long you need it for. Standard personal loans are meant for borrowing money in the medium or long term, whereas if you only need some flexibility with your monthly payments, you may be better off with a credit card.
  3. Can you afford to borrow money? Loans are never free, so first and foremost, you should consider them a cost. If you aren’t sure whether you can meet the monthly repayments, you may want to look at possible alternatives.
  4. Can you settle things differently? If you’re looking at borrowing money because you’re already in debt (for example, you’re behind with the bills), see if you can get in touch with the company you owe money to and agree on a repayment plan first.

How to choose the right loan

  1. Work out how much you need to borrow. It’s important that you don’t borrow more than you need to avoid unnecessary interest payments.
  2. Calculate how much you can afford to repay. You also need to make sure you can meet your monthly payments.
  3. Find a loan. You should compare loans and lenders based on rates, loan terms and repayment options.
  4. Check your eligibility. Once you’ve found a loan, make sure you meet the lender’s requirements, and if possible, use the lender’s eligibility checker to see if you’re likely to be approved.
  5. Apply for the loan. Make sure you complete the loan application accurately.

What are my credit options if I’m on low income or have bad credit?

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:

  • Government schemes. There are different options available. For example, if you’re on benefits, you may be eligible for a budgeting loan. This can be used to cover a range of expenses, and it’s interest-free, so you’ll only have to pay back what you borrow.
  • Credit unions. Credit unions are not-for-profit cooperatives that lend money to members in financial difficulties at a low interest rate. They’re funded through other members’ savings. Since they aren’t about making money, they can usually offer you a better deal than traditional lenders.
  • Guarantor loans. If you have someone (usually a family member) who can guarantee to make your repayments if you can’t, you may be able to access credit through a guarantor lender. However, interest rates can be high compared to traditional bank loans.
  • Credit-builder credit cards. If your credit score isn’t great, these are generally a good idea because they can be used to improve it. They have loose eligibility criteria but normally a high APR, so they’re no good for borrowing money in the long term. You should only use them to spread out your expenses within the billing cycle and clear your balance in full every month every time you can.
  • Specialist lenders. Some lenders specialise in offering credit to people with low income and a poor credit score. They can be a solution, but you should be careful because they may offer sky-high interest rates that won’t help you solve your money problems.

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.

Will my loan cost me more because I’m disabled?

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.

Personal loan cost comparison

Loan amount: £3,000

  • Loan term: 3 years
  • Interest rate: 10%
  • Monthly repayment: £96
  • Total interest: £463

Loan amount: £3,000

  • Loan term: 3 years
  • Interest rate: 24%
  • Monthly repayment: £114
  • Total interest: £1,108

Dos and don’ts

Do:

  • Check out your credit score and credit report.
  • See if you can get government help first.
  • Consider different credit options before going for a loan.
  • Compare lenders to get the best deal.
  • Look at the eligibility criteria before applying.

Don’t:

  • Take out a loan if you can’t afford to meet the monthly repayments.
  • Apply for multiple lines of credit in a short time, especially if you’ve just been rejected.

Alternative borrowing options

As well as the options mentioned above, you could also consider the following:

  • Universal Credit loans. If you receive Universal Credit, you might be able to get a Budgeting Advance to help pay for emergency household costs. The smallest amount you can borrow is £100, but you could get up to £812 if you have children. You must repay the loan through future Universal Credit payments within 12 months.
  • Friends and family. If you’re lucky enough to have a friend or family member willing to lend you some cash, this could be another option to explore. However, it’s worth drawing up a written agreement to state how long you will borrow the money for, whether interest will be added and how you will repay the money to avoid any arguments.
  • Payday loans. These should only ever be used as a last resort as they are a very expensive way of borrowing money. Always repay them as quickly as you can.

Bottom line

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.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
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Written by

Writer

Tom Stelzer is a writer for Finder specialising in personal finance, including loans and credit, as well as small business and business loans. He has previously worked as a freelance writer covering entertainment, culture and football for publications like FourFourTwo and Man of Many. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio

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Co-written by

Writer

Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio

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2 Responses

    Default Gravatar
    KirkJuly 9, 2019

    Hi, I am currently receiving ESA and pip benefit. Can I get a loan?

      AvatarFinder
      AshJuly 12, 2019Finder

      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

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