Loans for People on Benefits

£100 to £5,000 paid out same day!*

  • Loans Paid Same Day
  • Bad Credit Considered
  • Instant Decisions
  • Borrow up to £5,000

Select how much you'd like to borrow and over how many months below.

Rates from 12.9% APR to 1721% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%. Representative APR: 79.5% (variable). 

Warning: Late repayment can cause you serious money problems. For help, go to

WageDayAdvance is a broker, not a lender, and does not make credit decisions. We may receive a commission from the lender.

On benefits? You can still apply for a loan!

Here at WageDayAdvance, we aim to cater for all. All we ask is that you’re a UK resident, aged 18 or over and have a regular source of income be it from employment, self-employment or via benefits. The loan application process, eligibility requirements and approval criteria are identical regardless of your income source or amount. That means applying for a loan whilst receiving benefits is no issue. In fact, WageDayAdvance prides itself on helping those on benefits or those with a chequered credit history and we will do our utmost to match you with a direct lender who is able and willing to cater for your needs.

Below we’ll run through how our loan application works specifically and what considerations are made regarding applicants who are currently receiving some form of benefit. We’ll also discuss what our service can offer you with regards to loan amounts and terms and what types of benefits are treated as income versus those that are not.

How much would you like to borrow?

Rates from 12.9% APR to 1721% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%. Representative APR: 79.5% (variable). 

Warning: Late repayment can cause you serious money problems. For help, go to

WageDayAdvance is a broker, not a lender, and does not make credit decisions. We may receive a commission from the lender.

The Loan Application Process (for people on benefits)

Applying for a loan at WageDayAdvance could not be easier. We’ve designed our quick and easy application process from the ground up and have endeavoured to make the whole process take no longer than 5 minutes. Our application form is designed to suit all, so whether you’re an applicant on benefits or in regular employment, the application and resulting process are identical.

To get started, simply visit our apply page and fill in your information. You’ll see benefits listed as an income source as well as other options for various employment types. You’ll also be asked various questions regarding the amount of income you receive and your expenditure as well as a few personal details required to process the application.

On submission, a “soft search” will be performed via our lending partners to determine your eligibility. This type of search does not leave a record on your credit report and will not impact any other future lending applications. Think of it more to check if you are who you say you are rather than putting your finances under the microscope. You will then be presented with the option to proceed and accept the loan offer. You’re under no obligation to accept this offer and you may also be offered a smaller amount than you originally requested. Receiving benefits will have no bearing on this process and your application will be processed in the same way as those under employment.

Lending Amounts, Terms and More!

All loan applicants are offered the same choice of terms, specifically loans from £100 – £5,000 repayable over varying monthly terms from 1 month to 3 years. These terms are available to all applicants regardless of credit score, history, or income source (such as benefits) and the decision will be based more on affordability (income after expenses) as opposed to an income source. The soft search credit check outlined above will also be performed for all applicants, regardless of how and where their income is derived from.

On occasion, you may also be offered a loan amount that is greater than that which you originally requested. You will then have the option to lower the loan value and/or term to suit your needs. Again this also applies to those applying for loans whilst receiving benefits.

Loan Guarantors Are Not a Requirement

As WageDayAdvance only facilitates short term loans, no guarantor is required for any of the loan types, amounts or terms on offer. This applies across the board, regardless of your employment status or income source. The loan amount and term that is presented to you will be calculated based on your eligibility solely.

In the highly unlikely event of being rejected for a loan, you will not receive the option of providing a guarantor. Typically, if you do not fulfil the requirements associated with your desired loan terms, you may be offered a lesser amount or more manageable repayment terms.

Common Types of Benefits Classed as Income for Lending Purposes

If you would like to borrow money whilst on benefits, the key is to understand what type of benefit you receive and if that particular benefit is classed as income to any would-be lender. Some common benefits are classed as income, and some are not. You can only use benefits that are classed as income for loan consideration and subsequent repayments.

Our lending partners do not require a list of the specific types of benefits you receive, nor do they need the total amount for each. Instead, they’ll just need to be aware of how much in total you receive, how much you spend and therefore what you have left over at the end of the month. It will be this figure that is primarily used to determine your eligibility for the loan. Below are the current UK benefits that are considered to be income: –

  • DLA / Disability Living Allowance
  • Universal Credit
  • Child Benefits
  • Child Tax Credit
  • Working Tax Credit
  • Severe Disablement Allowance
  • Employment / Support Allowance
  • Incapacity Benefit
  • Personal Independence Payments

This is the current list however it is subject to change, and you should check before applying for any loan if the amount of benefit you receive can be used to service financial obligations with third parties such as short-term lenders. New benefit solutions are regularly introduced also, and existing ones are renamed, so this list should be considered a guide only.

And those that are not…

The UK offers several benefits that are not considered sources of income and thus cannot be used for servicing loans/debt. It is because of this that most lenders, including the ones we’re partnered with, will not consider income obtained from these sources to determine eligibility or grant approval for any short-term loan product. You may however receive one of more of these benefits whilst still receiving income from paid work. If that is the case, you should outline your income and expenditure from this source only in the application process.

The benefit types in question are:-

  • Pension Credits
  • Income Support
  • Job Seekers Allowance
  • Housing Benefits

We do still accept loan applications from people who receive one or more of these benefits, however for one of our lending partners to approve you for a loan, you’ll usually need to have an income from an additional source such as part-time employment. Your eligibility will be determined via a soft search in the same way as other applicants. There will be no additional information required or checks performed because you receive one or more of the benefits listed above.

Why Use WDA?
How much do you offer?
£100 - £5,000
Quick application.
Over how long?
1 - 36 months
Flexible repayments.
Bad credit accepted?
Welcome to apply
We cater for all.
How do I get a loan?
Apply Online
Secure application.
Representative APR
49.7% (variable)
No obligation quote.

Loans for People on Disability

If you’re unable to work and are receiving benefits due to disability, then you’re welcome to apply for a loan at WageDayAdvance in the same way as those in regular employment or those claiming other benefits such as Universal Credit. No consideration is given to the specific time of benefit you currently receive and as benefits for disabilities such as the disability living allowance (DLA) is considered an income source, it can be used to determine eligibility for any of the loan products offered by us and our lending partners.

If your disability living allowance is your sole source of income, you can specify this via the income source selection on our application form. The resulting income from your DLA will be considered in the same was as it would if it were income from regular, full-time employment. Everyone is treated equally and fairly, something we at WageDayAdvance pride ourselves on.

On Universal Credit? No problem!

Universal Credit is proving a popular option in the UK with many people being left financially better off by combining their benefit payments into one monthly lump sum versus receiving multiple individual benefit types and allowances. At WageDayAdvance, we don’t differentiate between specific types of benefits. Our only requirement is that the benefit in question is considered “income” as per the illustrative list above which Universal Credit clearly falls into.

The primary eligibility criteria is often affordability, so whether your income is derived from Universal Credit, other/multiple benefits or even regular employment – it will be the income versus expenditure considered primarily as opposed to what type of benefit you receive.

Debt, Advice and Good Financial Management

They say knowledge is the key to good financial management. Asking the right questions and getting the right answers. But for that, you need to know where to look and whilst the Internet is a fantastic tool for yielding such knowledge, in matters of finance, it’s often best to stick to reliable, tried, and tested sources.

Thankfully, being in the UK, you have access to a wealth of knowledge often curated by the government that can not only help you out of a sticky financial situation but also stand you in good stead with good financial practices when you’re back on your feet.

For matters of general money management, our go-to resource is Money Helper. The amount of information contained on this website is second to none and can be adapted and applied to suit a plethora of financial situations.

If you’re struggling with existing debt or are unable to keep up with loan repayments, you should review the StepChange and National Debt Line websites. Both offer free, impartial advice regarding debt and debt management and will endeavour to assist you in any way possible.

More FAQ’s

Will the loan come out of my benefits directly?

No. Your loan will be paid to you directly, you will be responsible for repayments. The benefits payments are solely used to check you can afford the loan.

Are all types of benefits accepted?

No. Only benefits that are classed as income such as universal credit and child support are allowed. Benefits such as job seekers allowance are not.

Can I get a loan if I am on benefits?

Yes, you can still easily qualify for a loan on benefits. They will be considered as income for affordability checks. If you would like to apply now, you can started here.