Are you a single mother looking for a loan? There is finance available when you need emergency funds.
If you're a single mother, there is a variety of reasons why you might need quick finance. Whatever your reason, there are loan options available. You can consider a short-term lender, a traditional bank or credit union or an alternative financial solution. All of these are outlined on the page below.
- Borrow from $500
- Flexible eligibility criteria
- Transparent rates and fees
100% confidential application
Wallet Wizard Smart Loan (Up to 2K)
The Wallet Wizard smart loan(Up to 2K) let you access your funds as a flexible line of credit up to $2,000
- Loan amount: $2,000
- Loan term: Up to 2 years
- Turnaround time: 24 hours
- Fees: 47.8% APR
- Wallet Wizard Visa Card
- Automatic Payments
- Redraw & Top-up available
Emergency loans that single mothers could apply for
What options do I have?
- Short-term loan. These loans let you borrow between $100 and $2,000, or sometimes up to $10,000. You can be in a variety of financial situations, including receiving Centrelink payments, but keep in mind higher fees and rates will apply.
- Bank loan. Some banks offer same-day loans for existing customers, giving you an option to consider if you need quick cash. Keep in mind you'll need good credit to be eligible, but you can still be considered if you receive Centrelink payments.
- Alternative finance. There are various low- and no-interest loans available to those on low incomes, as well as charities offering financial assistance. Depending on your circumstances, you may want to consider these.
I receive Centrelink – can I still apply for a loan?
Yes. Banks as well as short-term lenders consider applicants for a loan. It depends what payments you receive and your annual income, but you can find out the eligibility criteria and compare lenders on this page.
What alternative finance options are there for single mothers?
- NAB StepUP. This loan is an option to consider if you are on a low income and need a loan for essential goods and services. You 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. You can apply for 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. If you receive Centrelink you can have your payments brought forward as a cash advance. Your eligibility depends on how long you've been on Centrelink and how much you 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.
How you can compare emergency loans for single mothers
- Research the lender. Check the lender’s website and make sure its 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 the credit licence.
- Take note of interest rates and fees. Rather than having interest rates, emergency loans have a hefty fee to cover the cost of borrowing.
- Find out what loan amounts are available. 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.
- Check if the loan terms flexible. 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.
Things you should consider avoiding about emergency loans for single mothers
- Be careful of borrowing too much.
When you’re in need of emergency funds it can be easy to borrow more money than you actually need. While this might help your current financial situation, it could cause you more problems in the end. This is because over-borrowing can put you into deeper debt and you may find it harder to repay the loan.
- Watch out for the expensive fees and penalties.
If you take the first loan you see you might be saddled with high and frequent fees or extra penalties for certain things. For example, if you don’t compare available loans you might find yourself paying an unnecessary application fee or unnecessary ongoing maintenance fees.
Ready to apply? What the single mother should consider
Check you are eligible for the loan before you apply. You 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.