Budget Loan (Form SF500)

The budget loan is probably the easiest form to fill in, I will explain more on this later in this article. The application form can be collected from your local job centre. It is an interest free loan, which is paid back by deduction from your benefits at an agreed rate if your application is successful. From application it usually takes around 7 days to receive a reply. If you have been accepted you will receive the amount they are offering (the maximum this can be is £1500) and the weekly repayment amount. If you wish to accept it you have to sign the form and return it. From this the money will usually be paid into your account within 7 days.

You can apply for a budget loan if you or your partner have been getting one of the following benefits for at least 26 weeks:

• Income Support
  income-related Employment and Support Allowance
  income-based Job seeker's Allowance
  Pension Credit

Items a budget loan can be applied for are:

• furniture or household equipment
  clothing or footwear
  advance rent or removal expenses for a new home
  travelling expenses
  things to help you look for or start work
  improving, maintaining or securing your home
  repaying hire purchase or other debts you took out to pay for any of the above

Please note items outside these, you will not be granted a budget loan for.

The form is very simple, the usual personal information, but when it comes to listing items you require there is a simple 4 check box ( you can tick all if you like, whatever meets what you are applying for the loan for) , so you just tick the boxes applicable to your application, then there is just a little detail in a box below.

Example - You ticked the box saying the budget loan was for HP payments. You just have to enter your current total HP payments and the weekly amount.