Can a bank lend to me when I am unwell?

If you are unable to make a decision for yourself, this is called ‘lacking capacity’. 

If you get a loan and the lender knew or should have known that you lacked capacity, you might not have to pay the money back.

In Scot’s law, someone cannot enter into a contract, like a bank loan or other credit agreement, if they do not have capacity. The definition of incapacity is contained within the Adults with Incapacity (Scotland) Act 2000.

The bank or lender might still give you the loan or credit if you lack capacity because they might not know that you were unwell, especially if you apply for credit online for example.

Unless there is a reason for them to think otherwise, all banks and building societies will assume that you:

• Can understand the borrowing agreement, and
• Have the capacity to make a decision about your money.

If you are unwell and thinking about getting a loan, it may be helpful to take a friend or carer with you. They can help you through the process.