Just like any other applicant, single parents can apply for a payday loan as long as they can meet the eligibility requirements. Unlike some other forms of credit or personal loans, payday loans accept applicants who receive government benefits or are employed part-time. Some loans even approve applicants with a bad credit score. However, all applicants are required to meet other income and employment criteria. As these loans charge high rates and fees, it's also important to consider the risks and confirm whether or not you can afford to repay the loan during the loan term before applying.
You can use this guide to compare your options, learn more about the fees and features and understand the eligibility criteria.
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.
⚠️ 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.
Sunshine Short Term Loans
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This is a short-term loan offer with a fast and easy online application for good or bad credit borrowers. You can apply today to get approved
for up to $2,500. Get your loan funded in 30 minutes - conditions apply.
- Loan Amount: $2,500
- Loan Term: 9-20 weeks
- Turnaround Time: 30 minutes - conditions apply
- Fees: 20% of loan amount + 4% of loan amount each month
- Bad credit borrowers OK
- Quick & easy Approval
- Bad credit applicants considered
- Fast approval service
- Borrow up to $2,500
Loans options to compare
Compare the features of the payday loans below before you apply.
How do payday loans work?
Payday loans are small, short term loans that are designed to be repaid in line with the borrower's pay frequency and income. These lenders usually offer loans between $100 and $2,000 (or sometimes $5,000) for terms between 16 days, six months up to 1 or 2 years. Depending on the loan, you may be charged an establishment fee when you first apply as well as monthly fees.
These loans generally charge higher fees than other personal loans, so it's important that applicants confirm that they can meet the repayment obligations before committing. You can learn more about payday loans in this guide.
I receive Centrelink benefits, can I still get a loan?
A range of lenders consider borrowers who receive Centrelink benefits as income. Depending on the lender, they may require the Centrelink doesn't make up more than 50% of the total income. Compare payday loans for people receiving Centrelink payments for more information.
I don't have a good credit history. Will I be eligible for a payday loan?
Some lenders approve applicants with bad credit as long as they meet the other eligibility requirements. This could include a regular income or Centrelink benefits that make up less than half of the total income. The lender will also consider other financial factors including recent bank statements, expenses and liabilities including other loans and credit cards.
How to find the right loan for you
When comparing loan options, consider the following factors:
- Borrowing amounts. Lenders usually offer between $100 and $2,000, but if you're a first-time borrower you may only be eligible for less. There are higher loan amounts available – up to $5,000 and $10,000 but the lending criteria may be stricter.
- Repayments. The repayments are usually lined up with the borrower's pay schedule. For example, if they get paid fortnightly, the repayments will be set to be taken from the account every two weeks.
- Fees. If you borrow less than $2,000 you will pay a maximum establishment fee of 20% and a maximum monthly fee of 4%, both based on what you borrow. Loans $2,001 to $5,000 have a maximum annual rate of 48% p.a. plus a $400 establishment fee. Arrears fees will also apply if the borrower doesn't make repayments on time.
- Turnaround to receive funds. Applicants can usually receive the funds on the same day as approval, although some lenders may transfer it the next business day.
Risks of taking a payday loan
Payday loans can leave you worse off than before you borrowed the money so consider the following risks before taking one out:
- Unaffordable repayments. Payday loans are an expensive way to borrow money. If you can't afford your repayments then most lenders will charge a late fee that will make your financial situation worse.
- High rates and fees. Rates and fees on payday loans are high and there can be hidden fees if you miss a repayment. Always check with the lender what you would be charged if you are late to make a repayment or if you can't pay back the loan altogether.
What other financing options are available to single parents?
If you don't meet the eligibility criteria or don't think you can repay the loan on time, here are some alternatives to consider.
- No Interest Loans (NILS). Good Shepherd Microfinance are a charity that offer no interest loans to people on low incomes to be used for specific things such as buying a household item or getting your car repaired. Check the NILS website to see if you could eligible.
- NAB StepUP. Good Shepherd Microfinance also work with NAB to offer StepUP loans to people that meet their eligibility requirement. These loans can range from $800 to $3,000 with a fixed interest rate of 5.99% p.a. and up to three years to pay it back.
- Centrelink cash advance. Centrelink allows people to request part of their income support payment or Family Tax Benefit (A) early as an advance payment. The recipients must then pay back it back out of future payments. You can only receive an advance once per 12 months and can afford to repay it within 6 months. Other eligibility requirements apply depending on the government benefit, so make sure to compare these factors.
- Good Money. Good Money (a community partnership from NAB and Good Shepherd Microfinance) offers people in Victoria, South Australia and Queensland of loans between $300 and $1,500 for essential goods and services (such as fridges, washing machines and education). They also offer StepUp low-interest loans between $800 and $3,000. Be sure to check the individual fees, rates and repayment periods before applying.
- Charities. There are various charities, including the Salvos or Anglicare, that can offer you emergency financial assistance.
- Free financial counselling. If you're experiencing financial difficulty, you can contact a free financial advisor on 1800 007 007.
Loan repayment calculator
Payday loans charge higher fees than other options and it's important that people understand what their regular repayments will be (and whether they can afford them) before committing to a loan. You can use the loan repayment calculator below to get an idea of how much a loan can cost you (considering both regular repayment amounts and the total cost).
This calculator is designed to provide you with an estimate based on the numbers you enter. Your personal details are not taken into account and all calculations are based off the calculation model. This calculator is not intended to be the sole source of your information when making a decision regarding your loan, and this calculator also does not guarantee your eligibility. The calculator works off the following assumptions: fees do not change for the life, your lender will charge a 20% establishment fee and a monthly fee that is 4% of your principal loan amount. You may want to seek advice from a financial professional before signing up to a loan.