Emergency Loans For Single Mothers
There are a range of finance options available for emergency funds.
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When you are a single parent there can be times when finances are tight. Here are some financing loan options including short-term lenders, traditional banks or credit unions as well as alternative financial solutions. All of these are outlined on the page below.
Are you struggling financially?
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
⚠️ Warning about Borrowing
Do you really need a loan today?*
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
- For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
- Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
- If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
Credit24 Short Term Loan
- Loan amount: $2,000
- Loan term: 6-12 months
- Turnaround time: Same day - conditions apply
- Fees: 20% of loan amount establishment fee + 4% of loan amount monthly.
- You must earn $600 p/m
- Quick and easy Approval of your loan with good credit
Emergency loans that single mothers could apply for
What options are there for single parents?
- Short-term loan.These loans provide access to cash limits between $100 and $2,000, or sometimes up to $10,000. Applicants can be in a variety of financial situations and be considered, including receiving Centrelink payments, but it's important to keep in mind that higher fees and rates will apply.
- Bank loan.Some banks offer same-day loans for existing customers.Applicants need good credit to be eligible, but will consider those who receive Centrelink payments too.
- Alternative finance.There are various low- and no-interest loans available to those on low incomes, as well as charities who offer financial assistance. You can find out more information in this guide and in the section below.
Can Centrelink recipients apply for short term loans?
Yes. Banks, as well as short-term lenders will consider Centrelink applicants for loans. It depends what payments the applicants receive and the annual income, for eligibility criteria and to compare lenders head to this page.
What are the risks of emergency loans for single mothers?
- Disreputable lenders. Check the lender's website and make sure it's a reputable company. There have been many cases where scammers have pretended to be a loan provider, so see how easily they are to contact and check their credit licence.
- High interest rates and fees. Rather than having interest rates, emergency loans have a hefty fee to cover the cost of borrowing, plus other fees including those for late payments. These fees are regulated by ASIC and it's illegal for lenders to charge more.
- Borrowing too much. Different lenders may offer different minimum and maximum amounts. You don't want to borrow more than you need, so you want to apply for a loan for as close to the amount you need as possible.
- Multiple applications. Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
- Inflexible loan terms. The terms of the loan should also be compared so you have the optimal time for making repayments. Most lenders will require that you pay back the funds within the 'next payday' and will automatically deduct the funds from your account.
- Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can't repay.
What alternative finance options are there for single mothers?
- NAB StepUP.This loan is for people on a low income who need a loan for essential goods and services. Applicants can borrow between $800 and $3,000 at a rate of 5.99% p.a.
- No Interest Loans Scheme (NILS).This is offered by Good Shepherd Microfinance and is also designed for purchasing essential goods and services. Applicants can borrow between $300 and $1,200 and repay it over 12 to 18 months. You'll need a health care card or pension card or be on a low income, have resided in your current premises for three months and show a willingness and capacity to repay.
- Centrelink cash advance.Centrelink payments can be brought forward as a cash advance. Eligibility depends on how long the person in question has been on Centrelink and how much they receive.
- Good Money.These loans are available to residents of Victoria that receive Centrelink payments. The funds need to be used for purposes such as vehicle repairs, educational expenses, bills or debts.
- Services Relief Trust Fund.If you receive a salary and are a member of the Australian Defence Force you can access no and low interest loans that are repaid from your income.
What's required for an application
Applicants usually need to be over 18, an Australian citizen or permanent resident and be earning a regular income. You will also need documentation to prove your income, usually with 90 days of bank statements, a form of ID and details of your employment, income assets and debts.
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