Loans

If a client gets a ‘true’ loan, it’s not considered income for benefit eligibility. A ‘true’ loan is a loan that:

• transfers a sum of money from one person to another and
• there is an obligation to repay that money

This could be a loan from:

• a registered bank, eg:
  • a personal loan or
  • mortgage top-up for a specific purpose
• another lending institution, eg.
  • finance company
  • credit union
  • building societies
• a family trust they must pay back
• family and/or friends they must pay back

If a client is given money with no obligation to pay it back, it's considered as either income or a cash asset, depending on how often it’s paid. This could be gifts from:

• a family trust they don’t have to pay back
• family and/or friends they don’t have to pay back

If a client is given money as a one-off, then it is a cash asset. If they are regularly given money (eg. more than once a year), then it is considered income.

For more information see: