Scottish Government launches new interest free Tenant Hardship Loan
Posted by: Sharon MacPherson on December 07 2020 | Tagged:
The Scottish Government has just introduced a new, interest-free loan to assist private and social sector tenants who are experiencing difficulties paying their rent because of COVID-19. The Tenant Hardship Loan Fund is designed to help people who have had their finances or employment impacted by the coronavirus pandemic and do not have other means of housing support. The loan can be used to clear rent arrears from 1 January 2020 or to pay up to three months of future rent payments. The loan will cover a maximum of nine months' rent.
The loans are interest-free but you must pay the money back. You can pay it back over five years. You won't need to pay anything back in the first six months. If you don't think you will be able to repay the loan, it might not be right for you. You will need to pass an affordability check and a credit check before being offered a loan.
Before you apply for a loan, you should check if you're eligible for financial help that doesn't need to be paid back. For example, Universal Credit or a Discretionary Housing Payment. You can get advice from your local Citizens Advice Bureau.
You can find out more about the Tenant Hardship loan and how to apply on the loan portal.
If you would like advice about your finances, Scotcash is always happy to help. Call a dedicated member of the team on 0141 276 0525, or via our webchat.