Milton Keynes discounted emergency loan scheme

Milton Keynes residents that need money in an emergency can apply for low interest loans that are offered in partnership with the council and the Swan credit union. The funds can be used to pay living expenses (mortgages, housing, etc.), holidays, transportation, consolidate debt, or other bills.

The scheme simplifies the application process in that more people from the town may be eligible for a low cost loan. This will help families get the funds in less time for paying their bills and emergency living expenses. It will also fast-track the funds available to them.

Loans that Milton Keynes can help pay

There are no restrictions on what the money can be used for. Any type of emergency bill or long term need can be paid for, as long as the money is repaid over time.

There are examples in which families have used the money to help pay their rent arrears if they were threatened with an eviction. Other people have used the funds for expenses such as transportation, Christmas gifts, White goods, school uniforms, or even fuel bills. People can even use the funds to pay off other high priced loans they have, so it can help consolidate their accounts.

While the money can be used for assisting with any paying bills the borrower has, the team at the Swan Credit Union will want to ensure by doing this the household does not put themselves in deeper debt that can’t be repaid. So that risk will be assessed.

The reason the discounted loan scheme was created was to serve as an alternative to the Local Welfare Provision. With the central government reducing the amount of grants and vouchers available to people local to Milton Keynes, welfare often is not able to help them. Therefore, instead of the family then turning to a payday loan company or other high priced lender, the Milton Keynes discounted emergency loan scheme is a great alternative to the resident.

It can even help those individuals with other debts in their name. Not only can the loan be used to pay off those other bills, but the authorities will not automatically deny an application to those potential borrowers. Instead they will assess the applicants ability to repay and entire financial as well as personal situation. The Milton Keynes loans can also be used to consolidate debts, payday expenses, and other bills. More information on using loans to consolidate debts.

Low interest rates

The interest rate is fairly low. It is much lower than using a credit card or borrowing from a payday loan company. The local authorities in Milton Keynes and the credit union will try to provide the cash at a rate as around 19.6% APR, which is a competitive source of borrowing. The repayment period will be at minimum 12 months, though the funds can be repaid earlier if the borrower wants.

The scheme is meant to fast track Milton Keynes families to the money they need to help pay emergency bills. There will be a decision made by the credit union within 5 days. Even if the application has been denied, the council or the Swan credit union may refer the client to other forms of borrowing that may help them in a crisis.

All of the applications for the Milton Keynes emergency loan scheme need to be made through the welfare team. They will assess the application based on other sources the family has, their income, debt levels, credit history, and other factors. To apply, the phone number is 01908 253040.