Loans on Centrelink

If you receive Centrelink payments, there may be times when you need a little extra help to get by. Luckily, there are plenty of lenders who are willing to take you on, so you can borrow the money you need today.

Typically, you can only access a Centrelink advance once a year, but it could be all you need to get back on your feet again. These loans are usually repaid interest-free out of future payments.

Personal loans

If you need a loan but are on Centrelink benefits, there are a number of options available to you. You can get a personal loan from a lender to pay off debts, make home improvements or purchase a new car, among other things.

You can also look for a loan broker to help you find the right option. They will know which lenders are willing to consider Centrelink applicants and how much they can offer.

While most lenders treat Centrelink benefits as income, some may not, so it’s important to understand their lending criteria before you apply. This will ensure you find a lender who can meet your needs.

Car loans

If you’re receiving benefits from Centrelink, it can be a challenge to find a car loan. But it’s possible if you know where to look.

The good news is that lenders will consider many types of Centrelink payments when assessing your eligibility to apply for a loan. These include NDIS, disability, family tax benefit, government car loans, pensions, veteran’s payment, carer’s payment and rent assistance.

It’s also important to note that some Centrelink payments don’t qualify as income for loan purposes – for example, newstart and unemployment benefits.

However, working part time or casually can help your application if you have any proof of this income. This can be shown using tax returns, payslips or bank statements.

Payday loans

Loans on centrelink are a great way to get extra cash for any unexpected expenses. Whether you need to pay hospital bills or take your kids on holiday, getting some extra cash can help make your life easier.

However, payday loans are often expensive and come with high fees that you will have to pay off in the long run. It’s important to research payday lenders before you apply.

A good payday loan lender will consider your employment status and Centrelink payments to ensure you can afford the loan. They will also look at your bank account and other income, such as disability payments or youth allowance.

Centrelink is a government-funded program that helps Australians in need. You can even get an advance payment from it once a year.

Bank overdrafts

A bank overdraft is a line of credit that allows you to spend more money than you have in your bank account. The amount you borrow can be up to a set limit arranged with your bank, and the best part is you pay only for the money you use.

The Hayne banking royal commission revealed that ANZ offered informal overdrafts to customers on Centrelink benefits and charged them up to $60 a month in overdraft fees plus 17 per cent interest. But that’s not the only way you can borrow money with your Centrelink benefits.

There are also a few other loan options available to Centrelink recipients with a bit of creative thinking. These include a small mortgage, a car loan and an insurance policy with a small deposit. The best advice is to shop around for the right deal. The bank that offers the most competitive rates and products will be able to help you make your dreams a reality.