Need a small loan and receive Child Benefit?
This could be a simple way to borrow £500 and repay it using an agreed benefit payment.
Our Child Benefit Loan is for parents and carers receiving Child Benefit or other eligible benefits. We look at affordability, and if approved, an agreed benefit is paid into Wessex and used to make the loan repayment.
A £500 loan repaid from your Child Benefit.
If you receive Child Benefit or another acceptable benefit, you can have it paid into Wessex Community Bank and use part of that payment to make your loan repayments.
Simple to understand. Easy to keep track of.
Our Child Benefit Loan is one of our most popular small loans. Thousands of Wessex members use benefit payments to make their repayments. If you’re not already a member, you can apply to borrow up to £500, subject to affordability and our lending criteria.
How do you repay a loan using Child Benefit?
It’s straightforward.
We look at your circumstances and check that the proposed repayments are affordable.
Child Benefit is commonly used, but several other eligible benefits can be used too.
When your benefit reaches your Wessex account, we deduct the agreed loan repayment.
Save the remaining money with Wessex or have it sent back to your usual bank account.
Your benefit comes in. We take the agreed repayment. You choose what happens to the rest.
It doesn’t have to be Child Benefit.
Despite the name, Child Benefit isn’t the only benefit we can use for this type of loan. A number of other UK benefits can also be paid into Wessex and used to make the repayments.
What can you use a Child Benefit Loan for?
It can help with the things your family needs. That might be clothes, school costs, a bed, household essentials, childcare or another family expense. The important thing for us is that the borrowing is affordable and manageable.
Child Benefit Loan questions
The things people usually want to know before they apply.
Do I have to be an existing Wessex member to apply?
No. If you’re not already a member, you can still apply. A first Child Benefit Loan for a new member can be up to £500, subject to affordability and our lending criteria.
Do I have to receive Child Benefit?
Not necessarily. Child Benefit is commonly used, but several other acceptable benefits can also be paid into Wessex and used to make the loan repayments.
Can Universal Credit be used for a Child Benefit Loan?
Universal Credit can count as income when we assess affordability, but it cannot be the benefit paid into Wessex to make the repayments on this type of loan.
Why does my benefit have to be paid into Wessex?
That’s how the repayment is made. When the agreed benefit reaches your Wessex account, we take the agreed loan repayment and deal with the remaining money according to your instructions.
When will the loan be released?
If your application is approved, we won’t release the loan until the first agreed benefit payment has been received into your Wessex account.
What happens if my benefit is more than the loan repayment?
We take the agreed loan repayment. You can then choose to leave the difference in savings with Wessex or have it sent to your usual bank account on the same day we receive the benefit and deduct the repayment.
Is a Child Benefit Loan guaranteed?
No. Receiving Child Benefit or another acceptable benefit does not guarantee approval. We still look at your circumstances and need to be satisfied that the loan is affordable.
We don’t leave the final lending decision to an automated credit score. We look at your circumstances, income and affordability before deciding whether we can lend.
Pay off £500. Finish with £250 saved.
Every repayment does two jobs. Part pays off your Child Benefit Loan and part quietly builds savings for you in the background.
What could a £500 Child Benefit Loan look like?
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