Integration loan

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

On 11 June 2007 the UK Border Agency introduced 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 United Kingdom.

The opportunity to apply for an integration loan is available to any person who is granted refugee status or humanitarian protection, and their respective dependants, after 11 June 2007. 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 will be interest free with gentle repayment terms.

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.

Policy

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 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 of the form are also sent out by the UK Border Agency with positive decisions.

Where appropriate refugee community organisations and the Citizens Advice service may be able to help applicants with the completion of the form. In particular they may wish to advise on whether a loan request is appropriate for integration purposes. Further information on appropriate use is available in the guidance notes and application form.

The Department for Work and Pensions (DWP) will 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, for example, by direct debit arrangement or regular cheque payments. It 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 302k 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 is eligible for an integration loan?

Anyone 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.

An asylum applicant who has been granted indefinite leave to remain outside the Immigration Rules as a result of the Case Resolution Directorate's review of supported families is not eligible for a loan. The criteria on which the integration loans are determined is set out in the Integration Loans for Refugees and Others Regulations 2007, and enable loans only to be made to those granted refugee and humanitarian protection status (and their respective dependants). Those granted indefinite leave to remain are not therefore 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 will be made are set out in the loan regulations. They include the intended use for the loan and the applicant's financial position.

How does someone apply for a loan?

Application forms are sent out to those granted refugee status or humanitarian protection with the letters notifiying 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 who will be 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. Where available, Sunrise caseworkers may be able to help the refugee with their loan application. In other cases, assistance can be sought from the nearest One Stop Service or from a local refugee community organisation.

When should the application be made?

There is no time limit within which applications must be made, so they do not need to be made within a certain time of being granted refugee status or humanitarian protection. However, the length of time since an applicant was granted leave to enter or remain in the United Kingdom will be a relevant factor when deciding whether or not to make a loan. Clearly, the time that has elapsed since an applicant was granted leave will be relevant to his or her integration needs and the assistance that he or she requires, but each application will be considered on its own merits.

A refugee can apply for an integration loan during the five-year temporary leave to remain period. The loan will assist refugees in the early stages of their integration into life in the United Kingdom, therefore refugees will not have to wait until they have been in the country for five years before they can benefit. We will also take care to ensure that amounts loaned are consistent with, and repayable within, the temporary leave period granted to the refugee.

How are the loans paid and repaid?

The loan is usually paid by cheque. Cheques can only be paid into the bank or building society account of the loan applicant and he/sheshould open an account before applying for a loan. If the person does not have a bank or building society account and the loan is under £450, we can issue a cheque that can only be cashed by the loan applicant at the post office named on the application form.

The loan will be collected by the Department for Work and Pensions through mechanisms already in place to collect third party deductions such as utility debts and fines. Where a refugee is not receiving state benefits, he/she will repay the loan directly to the Department for Work and Pensions. In most cases repayment of the loan will commence six weeks after the funds are released to the individual.

Do Sunrise caseworkers and refugee community organisations have a role in the consideration of the loan application?

Community workers may help applicants with the completion of the application form. They will not, however, be able to influence the decision on whether a loan payment should be made. This responsibility rests solely with the Integration Loan Team in the UK Border Agency. However, caseworkers can, if they feel it would be helpful, add any comments in support of the application.