Loans for People on Universal Credit

Can I get a loan on Universal Credit?
In our guide to Universal Credit loans, Little Loans explores the options that could be available to you in the event of a financial emergency.

Search for loans for people on Universal Credit

Little Loans is a credit broker. We work with a panel of over 50 direct lenders and can help you search for a short-term personal loan between £100 and £10,000.
Some lenders on our panel may consider certain long-term benefits, such as Universal Credit, as a source of income when assessing your affordability for a loan.

You can use Little Loans to search for a Universal Credit loan if you:

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

Payday loans for Universal Credit

Looking for payday loans for people on Universal Credit?
None of the lenders on the Little Loans panel offer payday loans; however, they do offer short-term loans with a range of repayment terms. The repayment terms available to you will depend on the amount of money you apply to borrow and range from 3 to 60 months.

Unlike a payday loan, which must typically be repaid within one month, a short-term loan allows you to spread the cost of borrowing over a longer term. This could make borrowing more manageable. However, you should bear in mind that the longer your loan duration, the more you could pay in interest.

Short-term loans for people on Universal Credit

With a short-term loan, your repayments will be made in monthly instalments across your chosen term. Please note that your monthly repayments will include interest.

Before you apply for a loan, you should be sure that you can afford to make your repayments in full and on time each month.

What happens if I can’t pay back my loan?

If you can no longer afford to repay your loan, you should contact your lender. It’s better to reach out sooner rather than later so your lender can help you understand your options. They will be keen to work with you to put a plan in place.

If you’d like to talk to someone about money worries, please know that you can get free, confidential financial advice from organisations StepChange, MoneyHelper, Citizens Advice, and National Debtline.

Why choose Little Loans to help you search for a loan for people on Universal Credit?

• We’re a credit broker working with a panel of over 50 UK-based direct lenders, all of whom are authorised and regulated by the Financial Conduct Authority (FCA).
• Our service is free to use.
• Quotes are no-obligation.
• Searching for a loan with Little Loans will not affect your credit score.*
• If approved, your money could be sent the same day.**

Loans on Universal Credit

If you’re dealing with an unexpected expense, a short-term loan might not necessarily be your only option.
If you’ve been claiming Universal Credit for a minimum of 6 months, you could be eligible for a Budgeting Advance, which we’ll explore in the section below.

What loans can I get on Universal Credit? Budgeting Advances explained

If you claim Universal Credit, a Budgeting Advance could help you make a one-off payment for an essential expense. This could include:

• Furniture and household items, such as a washing machine
• Clothing or footwear
• Household repairs
• Security measures for your home
• Funeral costs

The amount of money you could get will depend on your circumstances. The minimum amount you could get is £100.

Information correct as of September, 2026

Can I get a Budgeting Advance loan on Universal Credit?

You could get a Budgeting Advance if you:

• Have received Universal Credit, Pension Credit, or Employment and Support Allowance (ESA) for 6 months or more; or
• Need the money to either stay in work or help with costs associated with a new job.

In addition to this, you must have earned less than £2,600 - or £3,600 if you’re in a couple - in the last 6 months.
If you’ve had a Budgeting Advance in the past, this must be fully repaid before you’re able to apply for another.

Universal Credit loans: how to apply for a Budgeting Advance

You can apply for a Budgeting Advance through your Universal Credit account journal, or by asking your work coach or a Universal Credit coach at your local job centre.

You can find further details on how to apply for a Budgeting Advance through the Universal Credit helpline on the Gov.uk website.

Urgent loans for people on Universal Credit

Here at Little Loans, we understand the stress that can come with a financial emergency, such as a broken-down car or an unexpected bill. Our online form can be completed 24 hours a day, 7 days a week and has been designed to be as straightforward as possible.

It takes around five minutes to check your eligibility, and your results will be shown on your screen in just 60 seconds. If you’ve been matched with a loan, you’ll be redirected to the lender’s website, where further checks will be carried out. As we’ve talked about, if your application is approved, your money could be sent the same day.**

If you need money urgently to pay for essentials such as food, please visit this page put together by MoneyHelper.

Are you claiming the benefits you’re entitled to?

A simple way to check whether you’re receiving all the support you’re eligible for is by using the free Benefits Calculator on the Turn2Us website.

*Little Loans uses soft search technology, which won’t impact 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.

**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.