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Personal loans for low income borrowers include short-term loans, small personal loans, secured personal loans and Centrelink cash advances. The amount you can qualify for will usually depend on your wage, financial circumstances and/or the assets that you own.
Borrowers should be aware that low income loans may have higher interest rates and fees compared to other personal loans, particularly if they are unsecured. Read on to find out everything you need to know about getting a loan when you're on a lower income.
What personal loan options do I have if I have a low income?
Personal loans for small amounts. Some lenders and traditional financial institutions offer personal loans for low income applicants as long as the amount requested is small.
Short-term loans. A short-term or payday loan offers small amounts of funds over a limited period of time, typically between 2 and 12 months.
Secured personal loans. Using asset security on a personal loan can often help you if you're on a lower income. This is because secured personal loans pose less risk to lenders.
Centrelink advance payments. If you receive Centrelink payments, you may be eligible to get some of the payment early. This is known as an advance payment, which is then repaid out of future Centrelink payments.
Low income credit cards. Some lenders offer low income credit cards if you can prove you meet minimum income requirements, usually at least $15,000 p.a. However, low income credit cards may have high interest rates, annual fees and other costs that can increase the risk of debt.
Alternative loan options. Other low income loan options include payday loans and no-interest loans from Good Shepherd Microfinance as part of its No Interest Loans Scheme (NILS) program. Here, you may qualify for anywhere from $300 to $1,200 and are only responsible for paying back the borrowed quantity, meaning no interest or fees.
What income do I need to get a loan?
Although some lenders list a minimum income requirement, other lenders do not. If a lender sets no minimum income requirement, then look at the other requirements to make sure you meet them.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Make sure you take the following factors into consideration when comparing different loans:
Interest rate. Interest charges add to the overall cost of borrowing money, so it's essential to check this rate and compare it to other options. Also, be aware that with variable interest rates, the lender could change the rate you pay on your loan.
Comparison rate. The comparison rate takes into account both the lender's interest rate and other fees charged with the loan. This can help you get a better idea of the overall cost of a loan.
Fees and charges. These include ongoing fees such as monthly or annual service charges, as well as one-off fees such as application fees and early repayment fees.
Loan term. This is the length of time in which you’re required to pay back the loan. Personal loan terms can range from a few months (for short-term loans) to five or more years.
Repayments. Loan repayments are typically monthly, fortnightly or weekly for a set amount of money. This makes it important to check the required repayment amount before applying. It's also worth checking whether or not a lender accepts additional repayments or variations.
Minimum and maximum amounts. Loans may have requirements around the minimum and maximum amount that can be borrowed. This is an important feature to check so that you can make sure you don't borrow more (or less) than what's required.
Secured vs unsecured. Some lenders may require collateral, such as a home or business equity, as security for your loan. This means if your loan goes into default status, your lender has the right to seize any collateral you have committed as security for the borrowed money.
Falling into too much debt. Make sure you avoid a situation where you get into too much debt. This means you must carefully weigh your future monthly income with your monthly repayments on any loan you commit to. Also, make sure to avoid applying for a loan amount that’s more than what you actually need.
Applying for too many credit products. Lenders can see exactly how many times you’ve applied for loans. Applying for several loans within a short period of time increases the risk for lenders, which can make it harder to get approved.
Why compare personal loans with Finder?
We're free
Our personal loan comparison is completely free to use. There are no costs at all for you to use our database to find a better deal. Better still, we regularly run exclusive deals that you won't find on any other site.
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We've researched and reviewed hundreds of loans as part of our Finder Awards. Our database and tables are always up-to-date and our in-house experts regularly appear on Sunrise, 7News and SBS News.
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We are independently owned and have a mission to help Australians make better financial decisions. That means our opinions are our own and you can compare nearly every personal loan in Australia (and find a better deal).
We're here to help
Since 2014, we've helped 300,000+ people find a personal loan by explaining your options simply. You don't need to give us any details to use our comparison. We're here to help you make a decision.
Frequently asked questions about low income loans
It may be possible to qualify for certain types of credit if you can show you receive some sort of income, whether from Centrelink payments, self-employed income, or other forms of regular deposits into your bank account such as share payments. Find out which lenders may consider applicants who are unemployed.
This depends on the particular lender and type of loan you’re applying for. For instance, if you are applying for a short term/payday loan, you can usually access funds from $100 to $2,000, depending on the lender and your circumstances. However, if you have assets that you can use as loan security, you can generally access up to 100% of the asset's value in finance, even if you are on a lower income.
Please keep in mind that applying as a low income earner would likely mean you’d qualify for a lesser amount, or a potentially higher interest rate than a borrower with higher income.
Elizabeth Barry is the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review.
If you're in need of a small loan up to $1,200 there's a range of lenders available. You can submit your application online and find out if you've been approved in seconds, and your loan amount can be in your account within a day. $1,200 loans are available if you have bad credit.
Applying for a personal loan doesn't have to be a lengthy complicated process, and this simplified way is just what Spot Loans offers. You can apply for a loan of between $500 and $3000 with Spot Loans.
Receiving Centrelink payments doesn’t cut off access to credit. People receiving DSP, Newstart, parenting payments or other government payments may be eligible for a range of loan options.
Many pensioners think it's not possible for them to take out loans to access much-needed funds. However, there are finance options available to those receiving the pension. Read our guide to find out what financing is available.
Thanks for getting in touch with Finder. I hope all is well with you. 😃
If you are in Ontario, you might want to check this Finder Canada easy approval loans. On this page, you will learn more more about how to apply for easy-approval loans if you have low income. On the same page, you will also be able to check your options and compare based on the loan amount, turnaround time, and term of loan. Once you’re done comparing, you can then select the “Go to site” button to learn more.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
The guide we are on offers the maximum amount each lender offers for approved applicants. You will see this in the comparison table. (Second Column from the left). Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!
At this time, we do not have access to lenders that offer vacant land loans for someone with low income however, you can get in touch with lenders offering Vacant land home loans to discuss your options and chances of approval before you send anything final for your application or speak to a mortgage broker who can help you find a suitable lender and provide you with a range of borrowing options.
As a reminder, when applying for a home loan, please ensure that you meet all the eligibility criteria and read through the Product Disclosure Statements/Terms and Conditions when comparing your options to see whether it is right for you.
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I want to ask. I’m in Ontario, Canada. I have a job and I earn $730 a month. Do I qualify?
Hi Kala,
Thanks for getting in touch with Finder. I hope all is well with you. 😃
If you are in Ontario, you might want to check this Finder Canada easy approval loans. On this page, you will learn more more about how to apply for easy-approval loans if you have low income. On the same page, you will also be able to check your options and compare based on the loan amount, turnaround time, and term of loan. Once you’re done comparing, you can then select the “Go to site” button to learn more.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
How much can I borrow with low income and with who
Hi Sabarudin,
Thank you for reaching out to finder.
The guide we are on offers the maximum amount each lender offers for approved applicants. You will see this in the comparison table. (Second Column from the left). Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!
Cheers,
Reggie
Can i find a lender who can do loans for low income earners up to $100,000 to buy a block.of land? i have $28,000 deposit and a good credit rating.
Hi Nikki,
Thank you for your inquiry.
At this time, we do not have access to lenders that offer vacant land loans for someone with low income however, you can get in touch with lenders offering Vacant land home loans to discuss your options and chances of approval before you send anything final for your application or speak to a mortgage broker who can help you find a suitable lender and provide you with a range of borrowing options.
As a reminder, when applying for a home loan, please ensure that you meet all the eligibility criteria and read through the Product Disclosure Statements/Terms and Conditions when comparing your options to see whether it is right for you.
I hope this information has helped.
Cheers,
Harold