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Borrow £100-£600 and repay from child benefit

Simplify life's surprises with the easy and low-cost alternative to costly online lenders and payday loans — from your local credit union.

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Maximum 42.6% APR. Repayment period between 6 to 12 Months. Representative Example: £400 borrowed over 9 months at 42.6% APR. Total amount repayable: £462.36

Apply risk-free - won't affect your credit file if you aren't accepted

Calculate My Loan

Your child benefit
£104.00 Child benefit you get each month

Your loan options

42.6% Representative APR
£0.00 Total interest and fees
£0.00 Total amount to repay

Your monthly payment


Child benefit from HMRC


Deducted for loan repayment

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Figures displayed are for illustrative purposes only. Actual figures will be based on the date of first payment and assumes payment as shown for the term of the loan. Lending decisions are always based on your personal circumstances, credit reference information and your ability to repay.

Warning: Late repayment can cause you serious money problems. For help, go to

Why choose a child benefit loan

Why choose a credit union loan?

  • Borrow up for £600 for any purpose
  • All employment statuses welcome
  • Fair 42.6% APR, with no hidden fees or early repayment charges
  • Apply online in 15 minutes
  • Build savings and good credit as you repay

The affordable alternative to doorstep and payday loans

Child Benefit Loans make lending fairer and much more affordable — saving you hundreds of pounds compared to online or doorstep lenders.

Comparison: £400 borrowed over 6 months

Lender comparison London Mutual Credit Union Logo Drafty Logo Quid Market Logo Lending Stream Logo
Representative APR 42.6% 96.2% 1,299.6% 1,333%
Cost of Loan £39 £119 £395 £373
Total Repayable £439 £519 £795 £773

Information taken from loan provider websites on 15 December 2023, and may change. Rounded to nearest £ GBP.

How our loans work

Frequently Asked Questions

Agree to save

Agree to your child benefit being paid directly from HMRC to the credit union and commit to saving a minimum of £10 a month, which you can withdraw once your loan is repaid.

Easy online application

Apply for a loan by completing our application form. If approved, we will send you a copy of the loan agreement and show you how to contact HMRC to change where your child benefit is paid.

Setting things up

You'll need to call HMRC to get your child benefit payments redirected into your new account. As soon as we see your first payment from HMRC arrive, we will pay your loan funds in.

Save as you repay

Each time your child benefit comes in, we will automatically take loan repayments and regular saving contributions. The remainder is yours to withdraw or add to your savings.