The Interest Rate for Secured Medium Loans is 48%. Maximum Comparison Rate is 67.41% p.a.
WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.
Let’s start with the basics. Centrelink is an Australian government program, founded under the Department of Social Security in 1997, currently known as the Department of Human Services.
The goal of Centrelink is to deliver Commonwealth services to Australians, aimed at helping them become self-sufficient. To help those in need, Centrelink has a range of programs to help different segments of Australian society.
Some lenders are able to offer small loans for Centrelink customers, depending on the payment type received. Typically, a lender would want to see consistent earnings over at least three months. Usually, temporary payments such as Newstart are not accepted by lenders.
You can get a loan on Centrelink. Some lenders may be able to offer a loan to Centrelink recipients, depending on their individual circumstances. Centrelink is also able to offer eligible applicants a Centrelink Cash Advance, in some scenarios.
The whole motive of Centrelink is to provide people with Commonwealth services, aimed at helping Australians become self-sufficient and supporting those in need. A part of this is providing cash advances to eligible individuals.
A Centrelink advance payment is a lump sum that is paid out of your income support payment or Family Tax Benefit (Part A). It is usually paid out early and then repaid at a later stage out of payments from Centrelink (also known as the Department of Human Services).
If you receive Centrelink benefits you are welcome to apply for a loan. We will do our best to find a lender who can offer you a small loan for Centrelink customers that matches your circumstances.
If, however, you think a Centrelink cash advance would be more suitable, here’s what you need to know.
You can apply for a Centrelink cash advance directly through the Department of Human Services after at least three months of receiving one of the following payment types:
Age Pension: This allowance is there to help older people who are retired from their main job and now lives with a supplemental or no job.
Career Allowance: These are supplementary payments for people helping and caring for a dependent person or persons.
Youth Allowances: A person aged between 16 to 24 years who is looking for work, studying full time or doing a full-time apprenticeship can get this payment.
Disability Pensions: The Australian government provides allowances for the people with disabilities. While it is a steady income and proper collateral for the loan, not every lender accepts it.
Parenting Payment: The main income support payment you could get if you’re a young child’s main carer.
Farm Household Allowance: This is a payment for farming families in financial hardship.
Widow Allowance or Widow B Pension: A payment for a widowed, divorced or separated woman over a set age. Widow B payments come into effect if a widow hasn’t received a Parenting Payment, has limited money or has lost the financial support of a partner.
Wife Pension: Set to discontinue on 20 March 2020, this payment is due to be transferred to a different category.
You may be able to apply for an advance at any time if you get any of the following:
You’ll find more information about these payment types and who would not be eligible, here.
As a Centrelink customer, the type of loan you are eligible for depends on your circumstances. Here are some commonly searched for loan types:
Quick Personal Loan: This loan is similar to a traditional bank loan but is applied for 100% online and usually ends with quicker outcomes than a traditional loan type. Typically, a person would apply 100% online with a lender. To make things quicker, we offer a lender finding service. You’d only need to apply once and we’ll get to work finding a lender that suits your circumstances, rather than you applying ‘all over town’ and having to deal with multiple lenders.
Payday Loan: Traditionally, payday loans were loans that were advanced and paid back in one sum with your next pay. These types of loans are illegal in Australia, however, some short term loan products are called ‘payday loans’ socially and in the media. Take a look at the MoneySmart website for more information about Payday Loans.
Loans secured with a car or asset: There are some lenders who accept Centrelink applications. Such lenders can offer you secured loans. This is a loan that is tied to an asset or security, usually when a consumer has poor or bad credit and a lender needs assurance that the loan will be paid back, or if a consumer wants a lower interest rate.
Alternative Finances: Centrelink customers are also eligible for several community finance programs such as No Interest Loan Scheme (NILS) loans.
Small loans for Centrelink customers can be unsecured, however, it depends on the consumers’ individual credit score and history and, with some lenders, their current relationship with money.
Sometimes, securing an asset like a car, bike, caravan or ute to a loan can improve the likelihood of the loan being approved, if you meet the lenders’ criteria. We can help you find secured and unsecured loans. If you’re not sure what kind of loan you’re eligible for, your best bet is to apply and let us take a look at whether we think we can help you find a lender. Not to worry – we work quickly.
Sometimes, a lender would be able to offer a secured loan to those with bad credit or without a credit history, if they meet their other requirements. Some lenders that we work with are able to look at your current relationship with money, rather than a credit score alone.
However, lenders may charge a higher interest rate for a bad credit loan. Attaching an asset to a loan can help get you a lower interest rate. Apply now and let us see if we can help you find a lender that offers small loans for Centrelink customers.
Centrelink can be a huge asset for people having financial trouble due to unemployment, low income, and retirement. However, finding a lender that offers small loans for people on Centrelink can be difficult. If you require some fast cash but want to stay safe, then it’s a good idea to choose a reliable provider. Pocket Cash can help you find reputable Aussie lenders that can provide fair assessments on small loans. Apply with us online today and see if we could help you get the cash you need!