Child Benefit Loan

Child Benefit Loan

Get a flexible credit facility up to £600 when you have your child benefit paid into your credit union account.

Apply today! If you receive Child Benefit for at least one child under 15, then you can apply for a Child Benefit loan of between £300 to £600.

Our Child Benefit loans give you a fairer and much more affordable alternative to high-cost borrowing from payday or doorstep lenders – saving you hundreds of pounds in interest.

Why choose a Child Benefit Loan with London Community Credit Union
  • Borrow from £300 up to £600.
  • Use your Child Benefit to repay the loan over 26 to 52 weeks.
  • Build savings whilst you borrow so you have a lump-sum at the end.
  • Simple and quick online application.
  • No hidden fees or early repayment charges.
  • Affordable interest of 42.6% APR.

You can apply at any time. If you receive child benefit, you may be eligible to borrow up to £600 (subject to affordability check)

  • Please note, if your Child Benefit is already assigned to LCCU, you will not be eligible for this loan. However, you may be able to apply for a standard loan. Please visit our loan page to apply.
Apply online in 4 easy steps:
Step 1

Agree to your child benefit being paid directly from HMRC into your credit union account and commit to saving a minimum of £2.50 a week (or £10 a month), which can be withdrawn once your loan is repaid.

Step 2

Apply online by completing our simple application form. We’ll need to review your income and expenditure – so you must click the Open Banking option when applying.

Step 3

We review your application within 3 days. If approved, we will send you a copy of the loan agreement and HMRC notification letter to review and electronically sign.

Step 4

The credit union will contact HMRC to get your child benefit payments redirected. Once HMRC has sent us your first Child Benefit payment, we then send your loan funds by BACS to your bank account.


  • Am I eligible?

    To apply for a Child Benefit Loan you must:

    • Be over 18 years old.
    • Be in receipt of Child Benefit and agree to your Child Benefit being paid directly from HMRC to your credit union account.
    • Have a UK address.
    • Not be bankrupt or involved in an Individual Voluntary Arrangement or Debt Relief Order.
    • Agree to save a minimum of £2.50 a week (or £10 a month) whilst repaying your loan, which cannot be withdrawn until the loan is repaid or topped up.
    • Agree to the credit union securely viewing your recent bank statements using Open Banking.
    • Agree to a credit check being performed as part of your application.

    If you are not already a member of the credit union, your loan application will be considered as an application for membership.

    We assess each application individually, taking into account income, expenditure, credit score/history, and whether we think you can afford the loan repayments. *terms and conditions apply.

  • What information will I need?
    We need you to provide personal information, including your:

    • Name and home address(es) for the last 3 years,
    • National Insurance number,
    • Child Benefit reference number,
    • Bank account details where your Child Benefit is currently paid, and
    • The bank account you use for your day-to-day banking and bills (if different to the bank account your Child Benefit is paid into).
  • I have successfully been approved, what happens next?

    Once you have been notified that your Child Benefit Loan application has been approved there are just a couple of simple steps remaining.

    We will send you the loan agreement that you will need to review and electronically sign, along with an HMRC notification letter. We will automatically submit the request to HMRC on your behalf to get your Child Benefit payments redirected to the credit union.

    We will only release your loan funds when the credit union receives your first Child Benefit payment.

  • What happens to my Child Benefit?

    Loan repayments and regular saving contributions will be taken automatically each time your Child Benefit comes into the credit union. The remainder is yours to withdraw or add to your savings.

    If at any point you are having difficulties keeping up with your loan repayments – please contact the credit union to discuss how we can help.