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What Loan Can You Get On Disability Allowance?

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  • 03-03-2021 12:06am
    #1
    brigidcooley75
    Registered Users Posts: 38 ✭


    Not sure what loans are available to people on disability allowance? I know theirs the credit union but I asked and they said you had to be paying oney in for at least 6-9 weeks regularly before they'd consider you for a loan.

    The bank also said no, so not sure what else is available for a loan. Does anyone know any place or if I've not asked the proper questions to these places about a loan? It wasn't a terribly large loan, 1-2K at the most, mainly to help ease some bills and car stuff.

    Any ideas or places to try?
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    #2
    SourSessions
    Registered Users Posts: 1,203 ✭✭✭SourSessions


    Is it very urgent? The credit union is your best bet in this scenario.


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    #3
    Ginger83
    Registered Users Posts: 3,456 ✭✭✭Ginger83


    Without a payslip nearly all places don't want to know which is ridiculous in a lot of cases.

    For example my wife is a Carer and recently changed banks. Her new bank refused a €500 overdraft based on her earnings yet accepted a lump sum payment off the mortgage on the same day.


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    #4
    con747
    Registered Users Posts: 5,881 ✭✭✭con747


    brigidcooley75 wrote: »
    Not sure what loans are available to people on disability allowance? I know theirs the credit union but I asked and they said you had to be paying oney in for at least 6-9 weeks regularly before they'd consider you for a loan.

    The bank also said no, so not sure what else is available for a loan. Does anyone know any place or if I've not asked the proper questions to these places about a loan? It wasn't a terribly large loan, 1-2K at the most, mainly to help ease some bills and car stuff.

    Any ideas or places to try?

    You could try your community welfare officer for an "Exceptional Needs Payment" if any use to you. https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/supplementary_welfare_schemes/exceptional_needs_payments.html

    Don't expect anything from life, just be grateful to be alive.



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    #5
    brigidcooley75
    Registered Users Posts: 38 ✭brigidcooley75


    SourSessions wrote: »
    Is it very urgent? The credit union is your best bet in this scenario.

    I'll talk to them once more and see what I can do. Thank you! :)


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    #6
    brigidcooley75
    Registered Users Posts: 38 ✭brigidcooley75


    Ginger83 wrote: »
    Without a payslip nearly all places don't want to know which is ridiculous in a lot of cases.

    For example my wife is a Carer and recently changed banks. Her new bank refused a €500 overdraft based on her earnings yet accepted a lump sum payment off the mortgage on the same day.

    It's strange isn't it, I don't know why, especially for smaller amounts of loans, doesn't really make sense.


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    #7
    brigidcooley75
    Registered Users Posts: 38 ✭brigidcooley75


    con747 wrote: »
    You could try your community welfare officer for an "Exceptional Needs Payment" if any use to you. https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/supplementary_welfare_schemes/exceptional_needs_payments.html

    I'll give that a read through, and contact them tomorrow and just enquire about what can be done. Thank you! :)


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    #8
    Gremlinertia
    Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Regional West Moderators Posts: 59,790 Mod ✭✭✭✭Gremlinertia


    con747 wrote: »
    You could try your community welfare officer for an "Exceptional Needs Payment" if any use to you. https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/supplementary_welfare_schemes/exceptional_needs_payments.html

    This is the best advice here, if you are on DB no point getting yourself further behind, if the bills are rent and utilities you stand a good chance of some assistance, best of luck..


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    #9
    Ginger83
    Registered Users Posts: 3,456 ✭✭✭Ginger83


    brigidcooley75 wrote: »
    It's strange isn't it, I don't know why, especially for smaller amounts of loans, doesn't really make sense.

    It sure is but she just kept the old account open. I know people that haven't a pot to piss in but have a new car every three years because they are trapped in pcp.

    The CWO is good advice and you could approach your local SVP depending on the reason for assistance.


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    #10
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Banks don't consider income from social welfare as permanent, which is why they won't consider it for loan purposes.

    Your best bet is the Credit Union, but even on a first loan they will usually only loan you the equivalent of what you have in shares.

    If you're really desperately stuck there are loan companies like Provident Personal Credit who give short term, high interest loans - but at least they are regulated. The maximum interest is fixed.

    For instance, if you borrow €500 over 26 weeks you will repay €650 at €25 per week.


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    #11
    ShaShaBear
    Registered Users Posts: 5,528 ✭✭✭ShaShaBear


    The Credit Union likely won't be any good to you in this particular circumstance because you need an account and savings for your first loan in most cases. Our local one requires the first loan be only €500 and you have to already have it in savings.
    As has already been said, banks don't consider social welfare a reliable source of income (I found this laughable when I was on Back to Education Allowance, and was told I could have a loan for college if I was getting the grant but not social welfare, despite my weekly payment being three times higher) so you're likely going to get nowhere there.
    The likes of Provident/Malboro Trust are options, but if you are borrowing to catch up on bills, I definitely wouldn't recommend. The weekly repayments are often very hard to manage (we were there ourselves once upon a time) and you might find you would do better saving up that repayment amount every week and paying lumps off your bills. Id absolutely recommend going to the Community Welfare Officer first for assistance (your bills would likely need to be considered essential, like rent and electricity and heating). I doubt you would get much assistance with the car unless you could show it being essential to aid you with your disability, perhaps?


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