Integration loan

This page explains the UK Border Agency's integration loan scheme for new refugees and those granted humanitarian protection.

The UK Border Agency administers a loan scheme to help new refugees, those granted humanitarian protection, and their respective dependants, to purchase goods and services to assist their integration into the UK.

The opportunity to apply for an integration loan is available to any person who is granted refugee status, humanitarian protection, and their respective dependants. The loan scheme is designed to give financial support to these individuals as they enter a critical period during which time they may have to find accommodation, train or re-qualify and seek employment. The loans are interest free.

The criteria on which the loans are determined is set out in Government regulations and guidance. It is intended that the loan will be spent on items and activities that facilitate integration such as:

• vocational training where provision is not available through Jobcentre Plus;
• a deposit for accommodation;
• buying essential items for the home; or
• the purchase of tools of a trade.

The loan scheme is not retrospective and so only those granted leave to enter or remain as a refugee, on the grounds of humanitarian protection or their respective dependants after the 11 June 2007, when the scheme was introduced, can apply for a loan.

The application form can be downloaded from the right side of this page and also from the integration page of the Asylum section of this website. Guidance notes are also on both pages and may help with the completion of the application form and address any queries applicants may have about the scheme. Copies are also sent out by the UK Border Agency with asylum decisions where appropriate.

The Department for Work and Pensions (DWP) make the loan payments on behalf of the UK Border Agency. Once the payment has been made, repayments will be made directly from those in receipt of income related benefit (income support, income based job seekers allowance or pension credit). For those not in receipt of these benefits, DWP will recover the loan, usually by direct debit arrangement. DWP will make direct contact with loan recipients about the collection arrangements.

Some guidance on our policy is below. We also have more detailed policy guidance (PDF 301kb opens in new window) on the scheme.

If this guidance does not answer your questions, you can email us at Integrationloan@homeoffice.gsi.gov.uk.

Who will be eligible for an integration loan?

Anybody over the age of 18 years who is granted full refugee status or humanitarian protection after 11 June 2007 will be eligible to apply for a loan as will their dependants who are also aged over 18 years of age.

The criteria on which the integration loans are determined is set out in the Integration Loans for Refugees and Other Regulations 2007, and enable loans only to be made to those granted refugee and humanitarian protection status. Asylum seekers who are granted indefinite leave to remain outside the Immigration Rules are not eligible to apply for a loan.

Only one loan payment is allowed per person. Joint applications will only be considered if both partners would be separately eligible for a loan and if both partners would benefit from the loan.

The criteria against which decisions are made is set out in the loan regulations and the supporting policy guidance document. This criterion includes the intended use of the loan and the applicant's financial position.

The length of time a person has already spent in the UK prior to a loan application being made will be taken into account, this may be time spent as a refugee or under some other immigration status. The time that has elapsed since an applicant arrived here and/or was granted refugee status will be relevant to his/her integration needs and the assistance that he/she requires, but each application will be considered on its own merits.

The payment of an integration loan to an applicant who has been convicted of a criminal offence since arriving in the United Kingdom is not normally regarded as an appropriate use of public funds and such applications will be considered for refusal.

How does someone apply for a loan?

Application forms are sent out to refugees and those granted humanitarian protection with the letters notifying them of a successful outcome. They are also available to download from the right side of this page. Completed application forms should be sent to the Integration Loan Team in the UK Border Agency which is responsible for considering loan applications and ensuring that loan payments are targeted towards those with the greatest integration needs.

A person applying for a loan must have a National Insurance Number. A loan application is not valid without one and will be refused. If the applicant has not been issued with a National Insurance Number he/she should apply for one as soon as possible at the nearest Jobcentre Plus.

A person cannot apply for a loan from abroad. The loan scheme is to enable new refugees, those granted humanitarian protection and their respective dependants under UK immigration legislation, to integrate into UK society. It is not applicable to those applying to come here from abroad.

Applications must be made in English on the Integration Loan application form. Applicants may wish to seek help from the nearest One Stop Service or a local refugee community organisation.

Incomplete application forms will be returned to the applicant without any action being taken. It is up to the applicant to reapply for a loan once they have all the information requested on the application form.

What can be purchased with an integration loan?

The Integration Loan Scheme is in place to allow those recently granted refugee status, humanitarian protection (and their respective dependants) to apply for a loan to purchase items and services that will help their integration into the UK. This will usually be for housing, employment or education purposes.

Loans will not be awarded for luxury or non-essential items. Exclusions may include payment of arrears, general living costs, driving lessons or travel documents. Nor will loans be paid for the travel costs of family members coming to the UK under Family Reunion arrangements.

The total amount of money that can be paid out in loans each year is limited. The amount of money offered to eligible applicants may therefore vary during the financial year to keep within budgetary constraints. The minimum loan award that will be paid is £100 and the maximum amount that will be paid is variable.

How are the loans paid and repaid?

The loan is usually paid directly into the applicant's bank or building society account. If the applicant does not have an account then they are advised to open one before applying for a loan. Money will not be paid into a third party's account. If the applicant cannot open a banking account and the loan is under £450, a cheque can be issued in exceptional circumstances.

The loan will be collected in regular installments by the Department for Work and Pensions (DWP). For those in receipt of social security benefit, collection will be taken directly from that benefit through mechanisms in place to collect third party deductions such as utility debts and court fines. Where a refugee is not receiving state benefits, he/she will repay the loan directly to DWP. In most cases repayment of the loan will begin six weeks after the funds are released to the individual.

Loan recipients will sign a loan agreement which sets out how much they will be required to pay each week/month. DWP will renegotiate the rate repayable each time the person switches from benefits to work and visa versa. The rate they are required to pay may increase.