Need a cheap loan to help pay for work-related learning. A Career Development Loan may be what you need.

A Career Development Loan (CDL) is specifically designed for those seeking to improve their job skills through training and study. You do not need to start paying back the loan until one month after you stop training.

A wide range of courses allow you take out CDL’s so you there are plenty of course to choose from. Whether you are employed, self-employed or unemployed you can still apply for a CDL.

CDL’s are a joint collaboration between the Learning and Skills Council (LSC) and three high street banks, namely Barclays, The Co-operative Bank, and the Royal Bank of Scotland.

While you are learning the LSC will pay the interest on your loan. This will continue to up to one month after you stop training. You then repay the loan to the bank at the agreed rate of interest over a fixed period of time. Check those details before you take out the loan.

You may borrow anything between £300 and £8,000 to aid you in funding up to two years of training (or up to three years if the course includes one year of relevant practical work experience).

A CDL is a personal loan between the bank and you, and you are therefore responsible for repayments on the loan. Check how much your monthly repayments will be before applying for a loan, and be sure you will be able to meet them once your course finishes.

Before applying for your CDL think about what you’ll need to pay for and how much you need to borrow. It may be more than just course fees.

You can use your CDL to pay for the following expenses:

  • course fees - 80 percent of your course fees. Or 100 percent if you have been unemployed for at least three months at the time you apply.
  • other associated costs - including, books, equipment, tools, childcare, travel expenses and some costs associated with disability
  • living expenses - for food, ordinary clothing or footwear, household fuel, rent, housing costs and council tax.  These costs can be included providing they are not already covered by any other benefit or grant and you are not employed elsewhere for more than 30 hours per week.