Pensioner loans

Lenders have stricter criteria for those receiving a Disability Support Pension (DSP), Carer Allowance or the Age Pension. Read on to see what loan options are available to pensioners, the eligibility criteria and costs that apply then compare the options that are available.

Retired? Click here to see your loan options

What's in this guide?

• Find out about your pensioner loan options
• Learn about government financial assistance schemes
• See the community financial assistance schemes that are available
• Find lenders that accept applications from pensioners

Credit24 Short Term Loan

Credit24 Short Term Loan

• Borrow up to $2,000
• Get a decision in minutes
• Flexible repayments

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Credit24 Short Term Loan Offer

Credit24 offer a fast and easy online application for up to $2,000. You can apply 24/7 with a good credit rating and employment to be approved.

• 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

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Name	Product	Maximum Loan Amount	Term of Loan	Turnaround time	Arrears Fee	Costs	Fortnightly Repayment (for $1500 Loan)
Credit24 Short Term Loan		$2,000	6-12 months	Same day - conditions apply	$7	20% of loan amount establishment fee + 4% of loan amount monthly.	$396	Credit24 offers this loan up to $2,000 and gives you 12 months to repay.	Go to site More Info	Compare	loading Fetching your data...
Ferratum Cash Loans		$1,900	up to 6 months	Same day - conditions apply	$55	20% of borrowed amount + 4% of borrowed amount each month	$396	Borrow what you need with loans starting from $500 and approval in minutes.	Go to site More Info	Compare	loading Fetching your data...

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Some of the brands that consider pensioners for a loan

Brand	Can pensioners apply?	What conditions are there?
Cash Converters		Your loan repayments cannot exceed 25% of your income from the pension.
Cash First		You also need to be employed.
Cash Stop		You're able to apply.
ClearCash		You're able to apply, applications are handled on a case-by-case basis.
Credit24		At least 50% of your income needs to come from outside of Centrelink payments.
DollarsDirect		You need to be currently employed.
Ferratum Loans		You need to earn 50% of your income from outside of Centrelink payments.
Good to Go Loans		You're able to apply, applications are handled on a case-by-case basis.
Max Finance		You're able to apply, applications are handled on a case-by-case basis.
Nimble		You need to be employed and your primary source of income can't be from Centrelink.
Rapid Finance		You're able to apply, applications are handled on a case-by-case basis.

Banks that may consider you for a loan

Brand	Can pensioners apply?	What conditions are there?
ANZ		You need to earn $15,000 p.a.
Aussie		You need to earn $24,000 p.a. You need to be in regular, paid employment. Centrelink is a valid form of supplementary income.
Bank of Melbourne		Age pension and DSP are accepted. You'll need to provide a letter from Centrelink detailing your pension payments.
BankSA		You're able to apply, applications are handled on a case-by-case basis.
Bank Australia		You're able to apply, applications are handled on a case-by-case basis.
Bankwest		DSP and parenting payments are accepted. You'll need supplementary income to be able to apply.
Bendigo Bank		You need to be in regular, paid employment. Centrelink payments are accepted with supplementary income.
Citibank		You need to earn $40,000 p.a. Age pension is accepted. You can apply if your pension income is taxable.
Commonwealth Bank		You need to earn $14,000 p.a. Parenting payments, DSP and carer's pension are accepted.
NAB		Some Centrelink income is considered. You need to demonstrate you can afford the loan repayments.
St.George		Parenting payments and DSP are accepted.
Westpac		You need to earn $15,000 p.a. DSP is accepted.

What loan options do pensioners have?

Loans that are available will depend on your financial situation and also the type of pension you receive. Here are a few options that people on the pension can consider:

• Your existing bank. If you've held an account with your bank or credit union and have a good history with it, this may be a good place to start. You can visit in-branch to discuss your options and find out what loans might be available.
• Low doc loans. These loans are designed for self-employed applicants or for borrowers whose incomes are tied up in investments. If this describes your situation, it might be an option to consider. Keep in mind that these loans usually come with higher interest rates and will normally only let you borrow up to 80% of the property price.
• Short term loans. These are small loans that are repaid in the short term. You can usually borrow between $100 and $2,000 for a period of 16 days up to 1 year. Your income and expenses will be verified before your loan is potentially funded. Keep in mind these loans come with much higher fees than other standard personal loans.
• Bank loans. Some banks, such as those listed in the table above, consider applicants receiving the disability pension or age pension. You will usually need to meet minimum income criteria to be approved.
• Loans for retirees. If you receive the age pension, are a self-funded retiree or are a pensioner, there are loans specifically designed for you and lenders that will consider you. Follow the link below to find out more about retired loans.

Loan options for retirees

_{*The cost may change and this is dependent on any other fees and charges applied by the lender at the time of your loan repayment}

Government assistance schemes

The government has established a few schemes and support options for people who are receiving the pension:

• Pension Loans Scheme
  This loan is for people who are of pension age but are ineligible for the Age Pension due to assets or income. Using this scheme you can access capital tied up in your assets to provide extra income. You're able to receive up to the maximum amount of the Age Pension, with payments made each fortnight.
• No Interest Loans Scheme (NILS)
  This scheme offers loans of up to $1,200 to people on low incomes to buy essential household items, health items or to pay for car repairs in some cases. To be eligible you must hold a pension card and be willing to repay the loan within 12 or 18 months.
• Centrelink Cash Advance
  If you regularly receive pension payments you may be eligible to receive one of your payments in advance. Whether you're eligible depends on the type of payment you receive, how long you’ve been receiving it and the amount you receive.

Community financial assistance programs

• AddsUP
  If you have successfully repaid a NILS or StepUP loan then you're eligible for a matched savings plan. Once you have $300 saved the bank will put in a dollar for every dollar saved, up to a limit of $500.
• Saver Plus
  This program helps families and low-income earners to improve their finances by developing savings plans and building assets. As you save you will be matched dollar for dollar up to a limit of $500.
• Good Money
  Operating out of Victoria, this community finance hub helps people access no- or low-interest personal loans, such as NILS, to purchase household goods. It also helps people to better manage their money and improve their finances.
• NAB StepUP program
  This program offers low-rate personal loans for amounts between $800 and $3,000 to buy essential household items. There are no fees and charges and the interest rate is fixed.

• WA
• NT
• SA
• TAS
• QLD
• NSW
• VIC
• ACT

^{All rates, fees and repayments correct at the time of writing}

How can pensioners apply for loans?

The table above is one starting point to find a pensioner loan. The table shows some personal loan options that are available and you can click "Go to site" to submit your application. If you have questions regarding your eligibility it would be best to contact the brand directly.

Every loan application you make will be listed on your credit file and too many applications within a short space of time will not look good to a prospective lender. If you would like to see if your bank would approve a loan for you, have a chat to it over the phone, online or in a branch to see what it says before you apply.

To apply, you will need to provide personal information including your name and contact details, as well as financial information regarding your pension payments, assets, debts and open credit accounts.

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Matt Corke

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Matt Corke is the head of publishing in Australia for Finder. He previously worked as the publisher for credit cards, home loans, personal loans and credit scores. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time he has survived the dot-com crash and countless Google algorithm updates.