What Is the Eligibility Criterion for Loans for Single Parents?

As a single parent, managing funds to run a family is indeed tricky. All of a sudden, the income streams shrink while the expenses remain more or less the same. To be able to match up to the ongoing financial requirements, you will need some time.

Meanwhile, your financial situation stabilizes. You can search for a loan option that can cater to your necessities. Get your hands on loans for single parents exclusively made for borrowers like you. However, you might feel skeptical about the eligibility criteria.

Whether or not you will fit will be your biggest confusion. Since these loans are offered to either single mothers or fathers, the eligibility conditions will be set accordingly. There is no need to worry as the lender has personalised the loan product by keeping the specific borrowers in mind.

Nevertheless, it does not mean any random single parent can qualify. There are some specifications meant for eligibility that the loan applicant must fulfil. To find out more about the conditions, you need to go through this blog.

Who can qualify for loans as single parents?

As a single parent, you have to juggle a lot of things at the same time. You have to think of childcare, handling daily expenses and work. Parenting is not a smooth journey especially when you are the concerned one only.

You have to face a lot of pressure. The family income becomes half and triggers a classic cash crunch situation. Amidst all these, you cannot deny the financial responsibilities you have to manage.

However, due to lack of funds, you could not make it to many. As a result of it, your credit scores see a steep fall. When you have a very low credit history, getting financial help is difficult.

This is because the lender cannot get the required assurance for loan payments. In this scenario, getting very bad credit loans with no guarantor and no broker becomes possible with direct lenders. Maybe you have to accept an increased rate of interest.

·       Eligibility criteria for single parents

The standard qualifying criteria revolve around earnings and credit history. Now, since these factors can be a little twisted in the case of single parents, some relaxation can be expected. Poor credit scores would not be a crime, as you must have read above.

It is just that you must find the right lender who can help you with your financial issues. All they need is surety for loan repayment, which you can provide in different ways.  Other than this, the eligibility conditions complement the other loans.

You must show your UK residency proof (the most basic requirement)
Address proof in the form of relevant documents is needed
You must have a bank account and a minimum balance of £ 500
Having a history of rejections should not be there
You must have some income-generating source

You can run a small business to establish a source of income. It can be a new business, and you must have a blueprint for the revenue-generating process. If you are already doing a job, this can be your greatest security in terms of getting loans.

·       Facilities available for single parents

Apart from loans, there are other financial support you can expect to get in this condition. These can be of additional help that can make some difference. You can get them from different sources. They are:

v Child Benefits

A Government-facilitated benefit aims to help you in the upbringing of your child. Surely, taking care of a child’s education and well-being is quite tricky with a single income. You can get the benefits weekly as well, depending on the number of children you have.

You can get them easily as a working parent as your employment status will be important. Besides, you will be required to have proper savings. No matter if you have opted for other savings as well, getting them should not be a problem.

v Financial facilities for health

The health of your kid is crucial, and you can avail yourself of health-related financial facilities as a single parent. Some schemes help parents to take good care of the health of their young children.

Once you qualify, you can receive weekly vouchers that can be used to fulfil food necessities. This means under such schemes, you should not face any difficulty in arranging good food and nutrition for your child.

v Child maintenance fees

This is one of the most prominent financial facilities made available for single parents. You can proceed with that after having a discussion with the other parent of the child. Only after that can you confirm the funding gap based on the extent of financial support you can get from them.

They still cannot deny their responsibility if you are not on good terms. They are responsible for sharing the cost of child maintenance with the other parent. Under this provision, you both should be involved to bear the cost in portions.

v Grants for unemployed single parent

There is an arrangement that allows jobless single parents to receive the much-needed financial support. You can check with different charities. They offer financial assistance and conduct training programmes to increase the possibility of employment.

You can even get suggestions from them regarding their different financing options.

v Enquire about an increment

You can explain your situation to your employer. If the above ways to fetch funding do not work for you, you can try this out without any hesitation. Things go off smoothly if you have a good rapport with your employer.

It is not a bad idea to oversee the different types of grants and benefits you can access. You can even take the help of different tools and calculators to verify which will be the most suitable one for you.

The bottom line

Although you have to tackle the financial responsibilities alone, you are not all alone. You have a family that needs your care and support the way you need theirs. Always cross-check eligibility before going ahead with any option.

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