Loans for people on PIP

Are you looking for loans for people on PIP?
Little Loans could help you understand your options.

Direct lender loans for people on benefits

Personal Independence Payment (PIP) is a UK benefit that helps with the extra costs of living with a long-term physical or mental health condition or disability. It is paid by the Department for Work and Pensions (DWP).

Little Loans is a credit broker, not a lender, and we could help you search for a direct lender loan for people on PIP.
We work with a panel of over 50 UK-based direct lenders, some of whom may consider your application for a short-term loan if you claim PIP.

Can I get a loan on PIP?

While you may be eligible to get a loan on PIP, it’s important to be mindful that your borrowing options might be limited.

Each lender has their own eligibility criteria, which could include a minimum income requirement. Income is the amount of money you have coming in each month, and could include wages, pension payments, and benefits. Some lenders could be willing to consider certain benefits as a form of income when assessing your eligibility for a loan.

When you apply for a loan, lenders look at your income, as well as your necessary outgoings, such as housing, bills, and food.
You’ll need to show that you have enough money left to make your monthly loan repayments after paying for your essential expenses.

PIP loans UK: Search for a loan for people on PIP with Little Loans

A small number of the lenders on the Little Loans panel could be willing to consider applications from people claiming certain long-term benefits, including PIP.
To search for a loan with Little Loans, you must:

• Be over the age of 18
• Be a UK resident
• Have a UK bank account and valid debit card
• Have a regular source of income paid into your bank account

How much money can I apply to borrow?

Little Loans makes it possible to search for a short-term personal loan from £100 to £10,000. Depending on the amount of money you apply to borrow, you could repay your loan over a term from 3 to 60 months.

What can I use the loan for?

Short-term personal loans are typically designed to help plug a financial emergency when other options, such as savings, aren’t available.
An unexpected expense could include a broken-down car, an unplanned bill, or a packed-up boiler.

You should never apply for a loan unless you’re certain that you can afford to make your repayments on time and in full each month.

How quickly could my money be sent?

If approved for a loan with one of the lenders on our panel, your money could be sent the same day.*

Loans for people on PIP: how does it work?

We’ve outlined the Little Loans journey below.

1. Let us know how much money you need to borrow and choose a repayment term.


2. Our online form should take around five minutes to fill out. You’ll be asked to provide some basic information, such as your income details.


3. We’ll run a soft search with no impact on your credit score.** This will give us an idea of your financial history and help us search for a suitable loan.


4. If you’re matched with a loan, you’ll be redirected to the lender’s website, where you can find out more about the loan and decide whether you’d like to make a full application.


5. The lender will complete a creditworthiness assessment, which will include a hard search or an Open Banking check.


6. If the lender is happy with the outcome of their checks, they’ll finalise the loan and let you know when your money will be sent.

How will my loan be repaid?

You’ll repay your loan in monthly instalments over your chosen term. Your monthly repayments will include interest.

Loans for people on benefits

You can find out more about loans for people on benefits in our guide.
You might also be interested in the following guides:

• Check your benefits eligibility: what benefits could I get?
• What benefits are available for single people in the UK?
• What benefits are available if you lose your job?

PIP loans DWP: Could I get a PIP loan through the Department for Work and Pensions (DWP)?

A ‘PIP loan DWP’ is not a specific product. However, if you receive certain benefits in addition to PIP, you could be eligible for financial support to help pay for essential and emergency costs. We’ll explore this further in the section below.

Alternatives to PIP loans

• Budgeting Loan
  You could get a Budgeting Loan if you’ve been claiming certain benefits for 6 months or more. A Budgeting Loan could help you pay for a necessary cost such as household items and essential maintenance and security for your home. The amount you could get depends on your circumstances. Budgeting Loans are interest-free, and repayments will be taken from your monthly benefit payments.


• Budgeting Advance
  Have you been claiming Universal Credit, Pension Credit, or Employment and Support Allowance (ESA) for 6 months or more? Do you need help paying for an essential, one-off cost? You could get a Budgeting Advance. The smallest amount of money you could get with a Budgeting Advance is £100. The maximum amount you could get will depend on your situation. Typically, you’ll pay your Budgeting Advance back over 24 months.

Can’t afford your loan repayments? Contact your lender as soon as possible

If you’ve taken out a loan and you’re struggling to make your monthly repayments, you should speak to your lender. Don’t ignore the worry and hope it’ll go away. The sooner your lender knows about your situation, the sooner they can help you understand what your options are.

Free financial advice in the UK

You can get free, impartial financial advice through the following charities and organisations:

• StepChange
• MoneyHelper
• Citizens Advice
• National Debtline

*Payout timescales vary between lenders. The time it takes for the money to appear in your account will depend on your bank’s policies and procedures.

**Little Loans uses soft search technology, which won’t affect your credit score. If you’re matched with a loan and choose to make a full application with the lender, they will carry out a creditworthiness assessment. This will involve a hard search or an Open Banking check. Please note that a hard search will be visible on your credit score for up to 12 months, and multiple hard searches in a short period of time could cause your credit score to decline.