Can I borrow money during an IVA?
Most people in an IVA can't borrow more than £500 without their supervisor's written permission — and most lenders will decline anyway. Here's how the rule works, why borrowing now usually backfires, and what to do instead.
Free to use, no obligation — and a soft search won't affect your credit score.
Written by the AfterMy team · Reviewed by Ben Miller, Customer Success Manager
Last reviewed: June 2026
Can I borrow money during an IVA?
Most people in an IVA can't borrow more than £500 without their supervisor's written permission — and most lenders will decline anyway. Here's how the rule works, why borrowing now usually backfires, and what to do instead.
Free to use, no obligation — and a soft search won't affect your credit score.
Written by the AfterMy team · Reviewed by Ben Miller, Customer Success Manager
Last reviewed: June 2026
Quick answer
Usually not, and rarely a good idea. While your IVA is active you cannot take on more than £500 of credit without your supervisor's written permission, and a loan almost always sits well above that. Lenders can see the IVA on your file too, so most will decline. The honest answer is that borrowing now works against the plan, and waiting until completion puts you in a far stronger position.
On this page
The short version
A loan during an IVA runs into the same rule that governs all borrowing in an arrangement: you cannot obtain more than £500 of credit without the written consent of your IVA supervisor. Almost any loan is more than £500, so you would need permission first, and it is rarely given for general borrowing.
Key point
There is a practical barrier on top of the rule. While your IVA is active it shows on your credit file and on the public Individual Insolvency Register, so most lenders will decline an application outright. The few who consider people mid-IVA charge very high rates, which is the last thing a budget built around an IVA needs.
Why the £500 rule exists
The limit is part of the standard terms of every protocol IVA, and it is there to protect the arrangement. Your IVA is built around a careful budget, and new borrowing can throw that off, putting your monthly payments and the whole plan at risk. That is why anything over £500 needs sign-off from your supervisor, who will only agree if it genuinely makes sense and does not endanger the arrangement. It applies to all borrowing, not just loans from banks. Credit cards, car finance, catalogue credit, and even money from friends and family all count toward the same limit.
What happens if you borrow without permission
Going over £500 without consent is a breach of your IVA. It does not end the arrangement automatically. In most cases your insolvency practitioner issues a breach notice and gives you a chance to put things right. But if it is not resolved, your creditors could vote to end the IVA, which would undo the protection you have built. A loan is not worth that risk.
"I want to start rebuilding now"
This is the real reason most people ask, and it is a good instinct pointed in the wrong direction. Taking on a loan during your IVA does not speed up your recovery. While the IVA sits on your file, new borrowing cannot lift your profile much, and the cost and risk outweigh any benefit. What does help is free. Stay on the electoral roll, keep every bill paid on time, and keep your IVA payments perfect so you reach completion cleanly. That steady record is exactly what lenders look at once the arrangement is behind you.
What changes when your IVA completes
When your IVA finishes you receive a Completion Certificate and the £500 restriction lifts. You no longer need anyone's permission to borrow. The IVA marker stays on your file until six years from the start date, or completion if that is later, so mainstream lenders may still be cautious for a while, but your options widen as your file recovers and your fresh history builds. That is the point to borrow from a position of strength, not stress. That is what AfterMy is built for, helping you work out what to do first, in what order, staged around your own dates.
Frequently asked questions
Can I get a small loan under £500 during an IVA?
Will my supervisor approve a loan?
What counts toward the £500 limit?
Is a payday loan an option during an IVA?
Should I just wait until my IVA ends?
Still in your IVA?
You're in the right place. There's plenty you can do now to be ready, and we'll be here the day you finish.