A crisis loan is a special type of loan that UK residents can obtain for financial assistance in a disaster or emergency. Individuals in Wales, Scotland, and England can download a crisis loan claim form from the UK Department for Work and Pensions Web site. This loan is interest-free and there are certain criteria that make a person eligible for the money.
Residents must be age 16 or older and not have the funds to meet short-term needs during an emergency or following a disaster. The safety or health of the individual or the family must be at serious risk or seriously damaged without the loan. Individuals are also eligible if they are at least 16 and were receiving a Community Care Grant but are moving out of residential or institutional housing and do not have the money for advance rent owed to a non-local authority landlord.
This interest-free loan comes from the Social Fund. The amount a person can borrow depends on his or her savings, individual circumstances, and whether money has previously been borrowed from this fund. The loan amount will be paid into a bank, credit union, building society, current, or Post Office card account.
Upon qualifying for a crisis loan, the borrower must determine how the money will be repaid. A Jobcentre Plus advisor will arrange an affordable repayment plan. Individuals who are on benefit usually repay their crisis loans from their normal benefit payments. The loan is not considered income and does not affect any other benefits being received.
If a crisis loan application is denied, the individual can submit a written request for a review within 28 days of the denial being made. If the review outcome is still unsatisfactory, an additional review conducted by a Social Fund Inspector may be requested. There are steps to follow, which are outlined on the Directgov Web site.