Loan Scheme
  • July 22, 2022
  • Adrina Martinez

Tenants in the private renting sector (PRS) who were experiencing rent arrears or wherein rent were eligible to apply for the Tenancy Saver Loan Scheme. On October 7, 2020, when the Welsh Government began accepting applications for the Program.

The Program made available a low-interest loan with a one per cent annual percentage rate (APR). That can be paid back over as long as five years. This loan is made available right away to the real estate agent or landlord after the application has been accepted.

And if a tenant is in need of a loan, then he can go for a tenant loan. The renter is permitted to borrow up to the maximum amount of rent arrears that are due or for future rental periods as long as the loan does not exceed a reasonable amount.


The loan was available to anybody in the private rental sector in Wales. And to those who had rent arrears dating after March 1, 2020. Or for those who believe they may struggle to pay future rent due to a drop in income directly caused by the effects of the Corona Virus.

You can also opt for debt consolidation loans for bad credit uk no guarantor if you need some extra help. The tenant saver loan was not applicable for any rent arrears prior to March 1, 2020. If a renter was already receiving assistance, the NRLA recommends that they apply to their local authority for Discretionary Housing Payments instead of applying for the loan. It is envisaged that a renter will be unable to apply for a loan more than once.

Lending Limits

There'll be no limit on the amount if the renter can show that they can afford to repay the loan. So, there will be a check to see if it's possible. 

The loan will be made payable immediately to the property's landlord or letting agent.

The renter will get none of the funds. And if the renter needs some funds, then he can apply for the private loans uk.

Notably, although the money will be handed directly to the landlord, the debt will stay with the renter, and the landlord is under no obligation to return any portion of the loan at any point. Since the landlord will get the funds to cover any rent arrears, they will be unable to evict a tenant for rent arrears.


Repayments will be permitted over a period of 5 years with an annual percentage rate (APR) of 1%. Any applicant must prove to the lender that they will be able to pay back the loan in the future.

The Welsh Council will supervise the Scheme for Voluntary Action, and several credit unions will provide the money with accreditation. The specifics have not yet been disclosed, and more developments are anticipated closer to the implementation date.


The Scheme was launched in August 2020. Tenants were recommended to monitor Welsh Government pronouncements about the loan scheme. The purpose of the tenant saver loan scheme in Wales is to assist persons in the private renting sector in paying off rent arrears or making future rental payments if they anticipate financial difficulties.

The loan must be repaid with small interest payments. It should offer renters some breathing room to get their finances back in order and provide them with assurance against eviction.


What is the Tenant Savings Loan scheme?

Tenants in the private rented sector (PRS) are behind on their rent payments or would have difficulty paying their future rent. Because of Covid-19 are eligible for the Tenancy Saver Loan scheme. It will give access to an inexpensive loan with a 1 per cent APR that may be repaid over up to five years from loan approval/start date. After the application for the loan has been approved and processed by the lender, the loan payment will be sent directly to the landlord or their agent.

Why is the Scheme being used by the Welsh Government?

They implemented this scheme to assist residents who are struggling to pay their rent owing to Covid-19. Because of this, some people who rent will fall behind on their payments and risk being evicted. The Tenancy Saver Loan program is designed to help renters keep the homes they currently occupy while also ensuring that landlords receive their monthly payments.

Why not a loan for agents or managers?

When you get a Tenancy Saver Loan, the money you borrow to pay back rent arrears will be wired directly to the landlord or property manager. This will result in the landlord or agent receiving the money directly, eliminating any fear of eviction against the tenant due to severe rent arrears.

A loan to a landlord or agent may be beneficial in the near term, but it won't immediately alleviate the tenant's rent arrears or guarantee the landlord will get paid.  The renter's ability to rent and/or property upgrades are independent of the loan payment, which will cover rent arrears or rent for forthcoming months that the renter may struggle to pay.

Who will execute the Scheme?

Wales Council for Voluntary Action will manage the Scheme, while Credit Unions across Wales will offer loans and help loan applicants during the duration of the Scheme.

Who can put in an application for a loan?

There are qualifying requirements for obtaining a loan under the Tenancy Saver Loan scheme, which includes:

a) That the loan applicant is a tenant of a Wales-based residence.

b) The borrower is a private renter.

c) Before March 1, 2020, the person applying for the loan did not have significant rent arrears, which are defined as arrears that are at least 8 weeks long.

d) That the person applying for the loan has fallen behind on their rent payments as of March 1, 2020, or that the person applying for the loan has fallen behind on their rent payments as of March 1, 2020, and will struggle to pay future rent (up to three months in advance) due to COVID-19 at the time of application.

e) That the person applying for the loan is not getting payments for housing costs from either the housing benefit or universal credit.

f) The applicant's landlord and/or agent satisfy the requirements set out by Rent Smart Wales to be registered and/or licensed.

g) The person applying for the loan has sufficient income and a favourable affordability analysis to be able to comfortably repay the loan.

f) The applicant has not already applied for and been approved for a Tenancy Saver Loan for the rental period that is in dispute from another lender.

The tenancy is a contract between a tenant, landlord, or agent. The tenant and landlord or agent sign a legally enforceable tenancy agreement. A tenancy agreement allows a tenant to reside in a property as long as rent is paid and the conditions are followed. The rental agreement specifies the tenancy's legal terms and restrictions.

How much money can a renter borrow?

The loan is contingent on the tenant's capacity to repay over a maximum of five years. They will be able to take out a loan for up to the most they owe in rent arrears. As long as doing so is within their means financially, the loan can be used to pay for future rental periods as well.

What rent arrears does the scheme cover?

The renter must have been in rent arrears for eight weeks or more prior to March 1, 2020.

Tenants who have accumulated rent arrears since March 1, 2020, and who have struggled to repay them or may struggle to pay future rent owing to Covid-19 are eligible for the loan.

This could be because how the pandemic has changed how people work. It is such as the return of employees from furlough. The implementation of zero-hours contracts, the use of shielding, or the practice of self-isolation.

Who does the loan money get paid to?

The money from the tenant's loan will be paid back to the landlord or agent on the tenant's behalf. The person applying for the loan will provide the name and contact information of the landlord or agent, and the Credit Union will get in touch with them to request their bank account information so that the loan payment can be deposited as quickly as possible.

What occurs if a renter is unable to repay the loan?

The Credit Union would empathise with a tenant's predicament and only initiate formal loan recovery after all other alternatives and offers of assistance have been explored. The renter's debt to the Credit Union won't affect the landlord in any way.


The Scheme is intended for those in the Private Rental Sector. Who have or are likely to fall behind on their rent because of the Corona Virus. The loan may be used to pay off rent arrears or for future rent payments if a renter has a reasonable belief that they may have difficulty paying their rent due to the Covid-19 epidemic. This was a great scheme and helped a lot of people.

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