Human beings are often faced with a crisis that requires them to look for extra money. This crisis includes settling bills such as emergency medical bills, consolidation of debts and settling after a natural disaster such as fire or floods. During such moments where there is an urgent need for money, not all people are equal regarding their financial ability and hence the need for application of loans. Financial institutions come into place to help people in economic crisis settle their crises by offering them loans. There are many categories of loans available from these institutions. Some of these loans include; car loans, conforming loans, unsecured loans and crisis loans just to mention but a few. This article is going to take you through all you need to know about crisis loans. What is a crisis loan? A crisis loan is an interest-free loan. It was founded from the social fund and is meant to help people cater for urgent needs and especially when there is no other source of help available.it is a loan that is meant to help people respond to an emergency situation or a disaster. The loan is offered to the people in extreme need of it and is returned with no interest. Eligibility for a crisis loan. The eligibility for a crisis loan is simple and does not have very strict conditions that one has to meet. It is a loan that anyone with an extreme need for urgent funds can apply and benefit from. However, one must be aged 16 years or above but that does not necessarily mean that one has to be receiving benefits in order to qualify for the loan. This means that it is possible to obtain the crisis loan while you have also claimed for a benefit and are waiting for a first payment of the benefits. Normally the application for the loan is meant to cater for a specific service, item or immediate living expenses for 14 or fewer days. Also to qualify for this loan, the need must be a consequence of an emergency or a disaster and it must be the only means of preventing serious risks to personal or the entire family’s health. How to apply for a crisis loan. Application for crisis loan is simple. It can be done in writing or by telephone. While applying using a written format, the loan application form can be downloaded from the DWP website, filled and then submitted for approval. In this case, include as much information about the crisis as possible and how an award of the loan will facilitate prevention of serious risk to personal or family’s health and safety. On the other hand, if the application is via telephone, you will be notified the decision on your application right away. In this case, if you are awarded the loan you will have to make a confirmation on how you will repay the loan; in writing before you can have a payment. If one is denied the loan, they should request the loan review officer in writing to review your request once more. Crisis loan amount and repayment. A crisis loan is basically a discretionary amount and not a fixed amount of money. There is not a set minimum amount of the loan that can be awarded. However, there is a maximum amount of funds that one can be awarded for a crisis. The maximum amount of a crisis loan is calculated and determined by the number of family members in your family and jobseeker’s allowance or the weekly personal allowance of income support. If a crisis loan is applied for buying an item, one is normally awarded the requested amount as long as the inspector judges the item to be reasonable and will meet the need. Repaying crisis loan is mostly not s problem for many people. This is because the ability of an individual to repay the loan is taken into account when the award is being made. One is usually expected to allocate a certain small percentage of their earnings to repay the loan. The percentage normally depends on an individual’s commitments. Just like other loans, one is requested to agree on payment terms before the loan money is handed over to you or disbursed to your account. The normal repayment period for the loan is 104 weeks. The terms for repayment are very flexible in a way that if one runs into a problem in the middle of the repayment period you can request for a reschedule.