applying for a loan in low income

Low income loans

Information verified correct on April 25th, 2017

Looking for a loan but have a low income? There are many lenders offering low income loans with low interest rates and little-to-no fees.

If you’re looking for a loan but have a low income, you may feel like your options are extremely limited, especially after looking at a lender’s minimum income requirements. However, there are many credit options specific to borrowers on a low income.

Loans for low income borrowers include short-term loans, personal loans (with small amounts), Centrelink cash advances and more. In addition, there are many lenders, ranging from traditional financial institutions to alternative finance lenders, that offer a host of low income loan options. Although these options may offer smaller loan amounts, they usually have lower fees and interest rates than traditional loans.

Sunshine Short Term Offer

Sunshine Short Term Offer

This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to get approved for up to $2,000.

  • Loan Amount: $2,000
  • Loan Term: 9 weeks
  • Turnaround Time: 30 Minutes - conditions apply
  • Total Cost of Borrowing $100: 20% of borrowed amount + 4% of borrowed amount each month
  • Bad credit borrowers OK
  • Quick and easy Approval
  • No Credit Checks - Must be employed

    Compare a range of short term loans

    Name Product Max. Loan Amount Term of Loan Turnaround Time Costs Product Description
    Sunshine Short Term Loans
    9 weeks
    30 Minutes - conditions apply
    20% of loan amount + 4% of loan amount each month
    Apply online with Sunshine Loans and you could borrow up to $2,000 paid directly into your account. Family Business since 1999.
    Nimble Short Term Loan
    62 days to 1 year
    1 hour - conditions apply*
    20% of loan amount + 4% of loan amount each month
    Apply for a short term loan and you could borrow up to $2,000
    Ferratum Cash Loans
    Up to 6 mths
    Same Day if approved
    20% of borrowed amount + 4% of borrowed amount each month
    A small loan from Ferratum lets you borrow up to $1,900 without a credit check
    Cash Train Loans
    10 weeks or 3 months
    1 Business Day
    20% of principal amount (establishment fee) + 4% monthly charge
    Apply for a Cash Train loan and get up to $2,000 sent straight to your bank account. Fast online application

    Compare up to 4 providers

    How do I know if I meet the minimum criteria to be eligible?

    Although some lenders have a minimum income requirement, other lenders do not. If a particular lender does have minimum income requirements, you can find this amount on the review page for that particular lender. If a lender sets no minimum income requirement, then look at the other requirements to make sure you meet them.

    Also, since income is one of the most important factors a lender analyses, you can get a good idea of how much you’re able to borrow through’s Borrowing Power Calculator. Here, you’re able to check borrowing capacity based on the sources and amount of income you’re receiving.

    What income do I need to get a loan?

    LenderLoan typeMinimum incomeLearn more
    Cash ConvertersMedium Personal Loan$1,000 per weekMore
    Cash TrainCash Loan$1,200 per monthMore
    Credit24Personal Loan$1,000 per monthMore
    DollarsDirectShort Term Personal LoanNo minimumMore
    Fair Go FinancePersonal Loan$500 per weekMore
    FerratumPayday LoanNo minimumMore
    MoneyMeShort Term LoanNo minimumMore
    NimbleShort Term LoanNo minimumMore
    Sunshine LoansShort Term Loan$450 per weekMore
    Swoosh FinancePersonal LoanNo minimumMore
    LenderLoan typeMinimum incomeLearn more
    act.Unsecured Personal LoanNo minimumMore
    ANZPersonal Loan$15,000 p.a.More
    BankwestUnsecured Personal LoanNo minimumMore
    Bank of MelbourneUnsecured Personal LoanNo minimumMore
    BankSAUnsecured Personal LoanNo minimumMore
    bcuUnsecured Multipurpose LoanNo minimumMore
    Bendigo BankUnsecured Personal LoanNo minimumMore
    CitibankReady Credit$35,000 p.a.More
    Commonwealth BankUnsecured Personal LoanNo minimumMore
    CUAPersonal LoanNo minimumMore
    IMBPersonal LoanNo mimumumMore
    Latitude FinancialPersonal Loan$24,000 p.a.More
    ME BankPersonal LoanNo minimumMore
    NABPersonal LoanNo minimumMore
    RACQUnsecured Personal LoanNo minimumMore
    RACVPersonal LoanNo minimumMore
    RateSetterPeer-to-Peer LoanNo minimumMore
    Society OnePeer-to-Peer Loan$25,000 p.a.More
    St.GeorgeUnsecured Personal LoanNo minimumMore
    WestpacUnsecured Personal Loan$15,000 p.a.More

    What personal loan options do I have if I have a low income?

    • Personal loans for small amounts. Many lenders and traditional financial institutions offer personal loans for low income applicants as long as the amount requested is small.
    • Short-term loans. Other lenders offer short-term loans with small amounts for those with bad credit and low income. You may be eligible to receive up to $2,000 with these loans. Usually, the term for these range anywhere from two to six months.
    • Centrelink cash advances. If you receive Centrelink payments, you may be eligible for cash advances on these payments. Keep in mind most eligibility criteria revolve around how long you’ve been receiving Centrelink payments and how much you’ve been receiving. Also, keep in mind that you’d usually qualify for only one Centrelink cash advance per year.
    • Low income credit cards. Many lenders offer low income credit cards if you can prove you meet minimum income requirements, usually at least $15,000 p.a. Low income cards offer many benefits including lower fees, lower interest rates, and even interest-free days.
    • Alternative loan options. There is a wide variety of alternative credit options if you have a low income. There are payday loans even for those with bad credit and who are on a low income. There are also no-interest loans from Good Shepherd Microfinance as part of their 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.

    How to compare your loan options

    Make sure you take the following factors into consideration when comparing your loan options:

    • Interest rate.Check the interest rate on any loan you’re considering. Make sure you know the difference between fixed and variable interest rates. With variable interest rates, make sure you’re able to meet monthly repayments if the rate happens to spike upwards during the life of your loan.
    • Fees and charges. Usually, every lender charges fees that come with a loan, so be aware of them. These include ongoing fees such as monthly or annual service charges. They also include one-off fees such as application fees and early repayment fees.
    • Comparison rate. To better help you compare options, a comparison rate takes into account both the lender’s interest rate and other fees charged with the loan.
    • Loan term. This is the length of time in which you’re required to pay back the loan (not applicable to revolving type loans such as credit cards and overdrafts). Personal loans usually have terms ranging anywhere from a few months (for short-term loans) to five or more years.
    • Repayments. Unless you take out a revolving loan such as a credit card, your loan will have regular repayments. Before taking out any loan, make sure you’re aware of how much your monthly repayments are, and if you’re able to meet these repayments. Also, check to see if your lender offers any type of repayment flexibility.
    • Minimum loan amount. Check to see whether any loan you’re considering has a minimum loan amount. Make sure you take out a loan that fits your particular needs and funds the amount you actually require.
    • Secured vs unsecured. Some lenders may require collateral, such as 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’ve committed as security for that particular loan.

    Things to avoid with low income loans

    • 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. If they see you’ve applied for many loans within a short period of time, they may consider you an irresponsible borrower and refuse your application. Doing this may also negatively affect your credit score.

    Have more questions about borrowing on a low income?

    What if I receive Centrelink payments?

    There is a host of credit options available if you receive Centrelink payments. You can receive cash advances on Centrelink payments and you may be eligible for personal loans that allow a certain percentage of income to come from Centrelink payments. You also may qualify for no-interest loans. Take a look at our guide to your Centrelink credit options to learn more.

    What if I’m unemployed?

    You still may be able 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 will consider you for a loan if you're unemployed.

    How much can I apply for?

    This depends on the particular lender and type of loan you’re applying for. Keep in mind that applying as a low income borrower would likely mean you’d qualify for a lesser amount than a borrower with normal income.

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