It's possible to get loans on centrelink benefits. A stressed out mom and two children.

Get a Loan on Centrelink Benefits: 5 Things You Need to Know

Avatar Steve Becker
Steve Becker is the Founder and CEO of LendEasy, a premier independent finance brokerage dedicated to helping working professionals and families secure optimal financial solutions. With over 15 years of experience, Steve and his certified team have been committed to supporting everyday Australians in achieving their financial goals through expert guidance and personalised service.

In the year 2021, the number of Australian households on Centrelink benefits rose to 5.5 million people. While it’s reassuring to know that these funds are available, many people don’t realize they can also apply for loans on Centrelink benefits. 

Any Centrelink payments you receive count as income and can help you qualify for a modest loan. Plus, brokers like to work with people on Centrelink benefits. Why should you get a loan on Centrelink benefits? Scroll down to learn more. 

. How loans on Centrelink benefits work 

Australia’s government offers a wide range of payments to Australian citizens based on their needs. Students unable to work due to heavy class loads can get a small allowance, new parents can help cover expenses with additional payments, and pensioners can make sure they have rent and utilities covered with a government check. 

Anyone who wants to get this federal money needs to apply with the government and may be asked to supply some evidence of their need. Suppose you are physically unable to work, for example. In that case, the office of Services Australia will ask to see some kind of documentation from a doctor explaining why you can’t go to work. 

After 2020, Australia’s citizens found themselves in desperate need of help. Many people got laid off or saw their jobs disappear entirely with the COVID-19 outbreak and couldn’t support their families. Australia offered some temporary financial relief so that people could shelter in place and avoid spreading the virus, but those benefits ended in April 2021. 

In post-COVID Australia, the demand for government benefits climbed steadily for more than a year.  A mix of inflation, an extended recovery from the fallout of the virus, and a number of other factors made it impossible for many people to cover their expenses, particularly our country’s pensioners.

That rise in benefit payments also created a new demand for loans to cover a myriad of needs from person to person. 

2. Brokers can get you a loan on Centrelink benefits fast

A good credit score, a little preparation on your part, and not too large of a request could land you a loan within a few minutes. Centrelink benefits count as taxable income even if you don’t make enough to pay taxes on them, (18,200 or less is considered too low to tax), so it’s easy for a broker to process. 

Even if your benefits go by a different name: Age Pension, Carers Service Pension, Sickness Allowance, all of this qualifies you for a loan on Centrelink benefits. 

The typical amount for a loan on Centrelink benefits runs between 200 and 2,000 AUD. That smaller amount helps clients get their money quickly and pay it off within six months. What does that mean for you?

You can cover an unexpected hiccup like a roof repair, an accident, or a large medical bill and pay it off with your loan on Centrelink benefits and no hassle, all while building up your credit score. 

3. A loan on Centrelink benefits is available to you every year

While it’s not a good idea to take out more than one loan at a time or several per year, you can apply for a small loan on Centrelink benefits annually. That loan is yours to use as you please and with a record of successful applications and payments to your broker, you can count on it coming in regularly. 

That extra chunk of money can help you visit family, cover holiday expenses, a yearly procedure, or help you pay off a larger purchase so you don’t stay in debt. Take advantage of this available money, but make sure you get the right kind of loan for you. 

Here’s a closer look at what you can apply for with your broker. 

4. The loans available to you

You have a few options when it comes to a loan on Centrelink benefits. Here’s a quick rundown:

  • Car loans – Your Centrelink payments can help you get a secured car loan so that you can purchase a new or used vehicle to help your commute. You will need to show how much you make each month to get this Centrelink benefits loan. 
  • Overdrafts – If you have a good history with your bank and evidence of how much you receive from Centrelink, you may be granted a larger overdraft. This lets you overdraw a larger amount of money from your bank account, essentially borrowing money from the bank. Once you hit your limit, you’ll be expected to pay the money back. 
  • Personal loans – The basic whatever–you-need loan that helps cover any number of expenses. You need to make sure the amount you request equals 49 percent or less of your total income in order to get your loan application approved.  
  • Payday loans  – This option for a loan on Centrelink benefits is also called a cash loan. Some firms will loan you up to 5,000 AUD if you have sufficient funds to pay it back, though most will cap the loan at 2,000 AUD. 

Some firms offer more options while many like to keep it simple. Make sure you proceed with caution as you apply for your loan on Centrelink benefits.

5. How to apply for loans on Centrelink benefits

Like all loans, you have to meet the eligibility requirements. That means you must be able to provide a legitimate identification document, be at least 18, and have a regular income from your job or a cosigner’s job that provides 50 percent or more of your budget. 

Once you have those requirements, your broker will need bank statements, any recent pay stubs, or additional documentation depending on the firm. Many will ask that you have a job on top of your benefits as a kind of insurance. As benefits can disappear as your needs change, your job shows that you can still pay off the loan even if you don’t have money from the government. 

Keep in mind that, despite protections in Australian law, some lenders will try to give you a big loan that you might not be able to afford. Read through the fine print carefully and feel free to show your contract to a second person to make sure you understand the fees, penalties, and the budget you’ll have to set for your loan on Centrelink benefits. 

Get a loan from people you can trust

At LendEasy, we work with you and your budget to make sure you not only get your application approved but also improve your credit score and get a loan that works for you. Don’t hesitate to book a discovery call with us today so we can explore all of your options and get you the best loan possible. 
Contact us here.

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