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Treatment of loans while on JSA

I'm uncertain about how obtaining a loan would be treated whilest on Job Seekers Allowance. Does it count as income and have an impact on the allowance?

Likewise, if the loan is arranged by a friend or family member, how is that viewed?

Any help appreciated.

Comments

  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    It would normally count as capital, and so be subject to the capital rules.
    Gone ... or have I?
  • leamus
    leamus Posts: 5 Forumite
    I'm new to this, so just want to clarify terms.

    If the loan is treated as capital in this case, does that mean it's treated as savings? And therefore needs to kept below 6500 (not sure about that figure).
  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    Yes, capital is savings, and the lower capital level is £6,000. However, it does not apply if you are claiming Conts Based JSA, in which case savings do not affect your entitlement.
    Gone ... or have I?
  • leamus
    leamus Posts: 5 Forumite
    Thanks for explaining.
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