Hi there DizzyG and welcome to the forum
May I ask who the loan is with? In general it is unlikely you would receive the PPI compensation if you are in arrears with the loan company, they can use something called the offset rule to recoup their money from the compensation.
However, if you have not heard anything about this you may yet receive the money but this will be a matter of sitting and waiting. If you do receive the money it may be better to use it to repay your debts anyway.
Do you have other unsecured debts?