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Depending upon the conditions and circumstances in which citizens
live, the Government offers certain benefits to the citizen
to help them live a suitable life with atleast the availability
of basic human facilities. The benefits are usually in the
form of financial help and the conditions may be disability,
low income, no job etc. There are lenders who consider such
benefits as income based on which they offer loans to people
who get such benefits.
The Government offers financial help called, benefits to
specific groups of people, including students, parents, care
leavers and young people etc. For example, Disability Living
Allowance is a tax-free benefit for people aged under 65 who
need help getting around and/or to look after themselves because
they are ill, terminally ill or severely disabled. Similarly,
Attendance Allowance is a tax-free benefit for people aged
65 or over who have an illness or disability and need help
with personal care. Similarly, Carer’s Allowance is
a taxable benefit paid to informal carers of people. You do
not have to be related to, or live with, the person. The person
you care for could be a friend, relative or neighbour. In
addition the above, there are mmore categories of benefits
given to citizens.
At time, these benefits in the form of financial help are
not sufficient to cover any extra or sudden expenses. But
now there are few lenders who offer loans to people living
on benefits. Such lenders consider the benefits in the form
of financial help as income and so offer the loan for people
on benefits.
Loans for retired: Loan Amount and Cost
The loan amount actually given to you depends on various
factors and varies from borrower to borrower. Lenders consider
various aspects of borrower’s profile to decide the
eligibility of the borrowers. These aspects may include the
amount of financial help you are getting, your age, your health
condition, income from saving, income from investments etc.
Similarly, the cost of loan i.e. interest rate to be charged
by the borrower also depend upon borrower’s profile
and risk associated with each individual borrower.
Therefore, loan amount and interest to be charged by the
lender depend upon the profile of the borrower. Once you apply
for a loan for retired people, you can get in principle decision
within a day. You have to produce copies of your pension statements
and other documents showing your income, if any from other
sources, while applying for loan for people on benefit.
So, lenders evaluate the following factors before offering
loans for people on benefit are:
- Age
- Amount of benefit
- Any other income such as disability benefit, income from
savings and investments
- The monthly payment you can easily make.
- Repayment period
Therefore, to conclude, if you are living on benefit but in
case of any unexpected situation, your income from benefit
may not be sufficient to cover the unexpected expense. In
this case you can always approach lenders who offer loans
to people on benefits because such lenders consider the benefit
as a source of income.
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