Tenant Hardship Loan Fund

Published: 16/12/20

Have you heard of the Scottish Government’s Tenant Hardship Loan Fund?

This £10 million fund offers interest-free loans to tenants who are struggling with rent arrears has opened for applications.

The Tenant Hardship Loan Fund is designed to help people who have had their finances or employment impacted by the coronavirus pandemic and do not have other means of housing support.

The new fund is part of a range of support and interventions in response to the pandemic. The loans cover a maximum of nine months’ worth of rent arrears and long repayment terms, and are available for those who have lost out financially due to the pandemic but who can’t claim support from other means, such as welfare benefits.

Applications for the Tenant Hardship Loan Fund can be completed here:

Loans will be available for social and private tenants for up to a maximum of nine months’ rent costs, covering rent arrears and future rent, where those arrears have arisen since 1 January 2020 (the loan will not be available where a tenant had rent arrears before this date). The loan can include up to a maximum of three months of future rent payments as part of the nine-month total.

The Scottish Government said the loan aims to provide an additional short-term offer that supports tenants to manage rent arrears and helps them to come back into paying their rent. Loan repayments will be deferred for six months as standard and repaid over a five-year period. This recognises the continuing uncertainty around the impacts of the pandemic.

The Tenant Hardship Loan Fund offers will be subject to an affordability assessment as part of the Scottish Government’s commitment to responsible lending. The affordability assessment looks at the applicant’s incomings and outgoings to check whether the applicant has enough surplus income, after other costs, to make the loan payments.

The application process for the loan highlights that there may be other more appropriate financial support options available to them and will signpost people to sources of further advice and support before making an application.

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