Crisis Loan

May 16, 2012 by  Filed under: Loans 

Sometimes people find that they don’t have enough money or resources to make ends meet or cope after an unexpected disaster or emergency. If you are in the United Kingdom, you can apply for help from the Government in the form of a Crisis loan, Budgeting Loan or Community care grant. The funding for this is administered by the social Fund.

Anyone can apply for help, however some of the Loans and Grants (Community Care Grants and Budgeting Loans) that are available are only for those who are claiming income related or means tested benefits like Jobseekers Allowance, Income Support or Employment Support Allowance, and who have been claiming these benefits without any breaks for 26 weeks or more.

Crisis Loans are available to anyone who resides in the UK and who has found themselves without income, and without any way to provide form themselves or their family. You can apply for a Crisis loan even if you are working, however you will need to demonstrate that you have no other way of meeting your immediate need, this may include asking for a salary advance or Loan from the Bank.

There are two ways to apply for a Crisis Loan, you can either make a paper application using a SF510 form that is issued by the Department of Work and Pensions and can be collected at your local Job Centre or you can make a telephone application.

A paper application usually takes two weeks to be processed, and is generally recommended if you are applying form help with rent in advance to move to a new property within 3 weeks.

A telephone application can be made on the day of the crisis, and generally takes around 45 minutes. To make a telephone application you need to call a free phone number ( 0800 number that is free from most mobiles) and you will speak to a decision maker who will take the details of your application and complete a form on your behalf. after all of the information relating to your Crisis is taken, you ill be put on hold for up to 5 minutes whilst the decision maker looks at all of the information that you have supplied and also seek to verify anything that they can ( for example your next payday, or amounts paid etc)

Once the decision maker has considered your application, they will return to the phone to give you their decision. If they do decide that they can award you a Crisis Loan they will discuss the amount of money that you agree to repay each week and also the period that they expect that you repay the money by.

If you are on benefits, then this is usually 7% of your weekly income and is limited to 104 weeks as a repayment period, and this will be automatically set up with your Jobseekers, Income Support or Employment and Support allowance section. The time to set up repayments can vary from 2 weeks to 6 months, however you will be notified by letter when they actually start, and the letter will breakdown the period and amounts that you are expected to repay.

The amount of money you get when you apply for Job Centre Crisis Loan can vary, but the maximum award that can be made to any one household if £1500.00 at any one time. So if you already have an outstanding Crisis Loan, you can only borrow a maximum of the difference between what you owe and £1500.00.

If you are awarded a Crisis Loan, payment will be arranged for the day that you apply if before 16:30, or the next day if you apply after this. The payment will be made into your bank account by immediate payment if possible so that it clears within 2 hours.

Written By Adam Laughton, previous Social Fund decision maker who is now working with voluntary organisations to help those who apply for Government assistance find the information that then need to make an application. Check out our site for free advice relating to getting a Crisis Loan

Article Source:
http://EzineArticles.com/?expert=Adam_S_Laugton

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