Just because you receive a pension doesn’t mean you can’t take out a loan.
If you receive Centrelink payments, including the pension, and are looking for a loan, you may find your options somewhat limited. Lenders have stricter criteria for those receiving disability support pension (DSP) carer's pension or the age pension.
It’s important to know that there are loan and financing options out there. It’s even more important to know how to compare these options so you find the right product for you. Read on to see what’s available, compare your options and find out how to apply.
Retired? Click here to see your loan options
Financial hardship
If you’re experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the Financial Counsellors hotline on 1800 007 007. It is open from 9:30am to 4pm, Monday to Friday.
Sunshine Short Term Offer
Sunshine Short Term Offer
- Centrelink borrowers considered
- Fast approval service
- Borrow up to $2,000
100% confidential application
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
- Fees: 20% of borrowed amount + 4% of borrowed amount each month
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks - Must be employed
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. |
| bankmecu | | 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 $35,000 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?
The right loan 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 them, 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. As these loans are smaller and repaid in the short term, they have more flexible lending criteria than what is set by banks and other lenders. You can usually borrow between $100 and $2,000 for a period of 16 days to one year. Many lenders understand the pension payment varies from each pensioner to the next. Your income and expenses will be verified before your loan is potentially funded.
- 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.
*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
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.
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 are 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 are eligible depends on the type of payment you receive, how long you’ve been receiving it and the amount you receive.
Sharon and Greg
As a couple, Sharon and Greg receive $1,154.80 through the disability support pension after Greg had an accident at work. This is their only source of income. They are renting an apartment and their budget is stretched tight, not leaving any room to purchase any large items. Their fridge breaks down and they need $800 for a new one.
They are not eligible for a personal loan from most of the larger banks because their income is not sufficient. They consider their payday loan options, which will allow them to borrow the money and make repayments to coincide with their Centrelink payments, but they find out that they would have to pay back the loan within 60 days and this will not be manageable on their budget.
What they decide to do: They then take a look at the StepUP program and realise they will be able to borrow $800, or more should they need it, because they are using it to finance an essential household item. They can choose to pay the loan back over two or three years and their payments can be as low as $20.15 a fortnight. They decide that this level of repayment is manageable on to their budget. The loan also comes with a low fixed rate of 5.99% p.a. and is more affordable than some of the other loans they were considering.
All rates, fees and repayments correct at the time of writing
Community financial assistance programs
- AddsUP.
If you have successfully repaid a NILS or StepUP loan then you are 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. They also help 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.
All rates, fees and repayments correct at the time of writing
How can pensioners apply for loans?
The table above will give you a good starting point to find a pensioner loan. You can click through to the page to find out more about the personal loan options 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 them over the phone, online or in a branch to see what they say 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.
Financing a caravan or motorhome? Read our guide here.
Picture: Shutterstock
I have defaults, I work full time. I would just like a second chance on a loan to purchase a motor vehicle. If not successful with a loan, can a pensioner on carer pension get a loan for a motor vehicle and if so, how much?
Hi Robert,
Thanks for your inquiry. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.
If you need to borrow to buy a vehicle, please review the criteria and contact a lender on this page to discuss your options and eligibility. You can request a quote from the provider. You can also make use of the car loan repayment calculator on this page to give you an idea.
Hope this information helped.
Cheers,
Rench
I am looking at taking out a loan of $800. I am on a DSP Pension. Could you please direct me where to go. I also have an earned income of $180 per fortnight. I would like a low interest rate. I have already taken out the supplement loan with centrelink.
Hi Philomena,
Thanks for your comment.
Some lenders and institutions do consider Centrelink payments as income, so you may be eligible for a loan. It generally depends on how much you earn, what kind of financial situation you’re in and what kind of payments you receive. To find out if you are eligible, read our comprehensive guide to getting a loan on Centrelink payments.
Regards,
Jhezelyn
I am after a loan, as I’ m on the carer payment a lot of places reject me I need money for a brand new washing machine and groceries today, who can help me?
l recieve $230.13, after my SA housing is payed by centrelink direct debit and my Centrelink loan
Hi Ursula,
Thanks for reaching out.
Although we’re not sure if you’ll be approved for a loan or not, you may contact a lender listed on this page to discuss your eligibility or options.
Cheers,
Ma
Hi Anne,
Thank you for your inquiry.
If you are currently receiving carer payments through centre link you may want to check the available option/s here.
I hope this information has helped.
Cheers,
Harold
Hi , I’m enquiring about borrowing 5500 , what would the fortnightly payment be , an how many months could I take it over
thankyou
kylie
Hi Kylie,
Thank you for your inquiry.
The repayments and term for a $5,000 personal loan would depend on the lender you go with. If you are a pensioner, you can contact a lender featured above to directly discuss your loan options and eligibility.
Cheers,
May
If I take out a $50000 mortgage on my home does Centrelink use this as an asset I would have $25000 plus $50000.
Total assets using the $75000 figure would be about $100,000 including furniture and car.
But I would have a fortnightly repayment to bank.
Probably about $120 per fortnight not known yet as I am investigating with banks
Hi David,
Thank you for your inquiry.
If you are on a pension and are looking to apply for a loan, you can compare your options we’ve listed on this pag. Please each lenders may required eligibility criteria. You can click the name of the loan product on our comparison table, then you will be redirected to a page where you can check the full details for your further review and comparison.
I hope this information has helped.
Cheers,
Harold
I need to get a lone im on a pension
Hi Julia,
Thanks for your question.
If you are on a pension and are looking to apply for a loan, you can compare your options above.Please do note that that other eligibility criteria apply.
When you click the name of the loan product on our comparison table, you’ll be redirected to a page where you can check its requirements and eligibility criteria to apply.
Cheers,
Anndy
I get a DSP pension and i want to get a car loan for $7000. I have had credit cards in the past for limits up to $5500 and paid them off. My credit rating is very good according to credit savvy website. I could do a a secured loan as i own my own house. What are my options? i want a low interest rate and i could just get a $5000 low rate credit card and but a car with that but i want to be more sensible
Hi Brian,
Thank you for your inquiry.
The lenders that are featured on this page offer loans to people who receive DSP and other Centrelink payments. If you need to borrow to buy a car, please review the criteria and contact a lender on that page to discuss your options and eligibility.
Cheers,
May
I’m on a dsp and I need a loan of at least 5000 to repair my balcony on my house. It’s very dangerous cant be walked on.and only yesterday whilst I was unlocking the front door a huge portion of the balcony floor fell off and almost took my head off.Isthere anyone that can help me. I need an answer asap.thankyou
Hi Suzy,
Thanks for your question.
On the above page, we have listed short-term lenders and banks that may consider you for a loan. Kindly refer to those with green checks. To check the loan features and eligibility criteria to apply for a particular loan, simply click the name of the brand/bank on our table.
Please note that lenders have stricter criteria for those receiving disability support pension (DSP).
Before submitting an application, make sure that you’ve read the relevant T&Cs or PDS of the loan products you are interested in.
Cheers,
Anndy
Hi
I would like a small loan to help with some bills etc i receive carers allowance can you please help….urgent
Thank you
Hi Karen,
Thanks for your question.
If you are receiving Carer allowance, some of the lenders and banks above may consider you for a loan. By clicking the lender or bank that accepts Centrelink, you’ll be redirected to a page where you can check and compare your options.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision whether the product is right for you.
Cheers,
Anndy
my partner & I are aged pensioners. We have a credit card debt of $21,000 on which we pay $600per month. How can we obtain a personal loan paying $600 per month to pay of our card. The interest would be considerably lower & we could pay of the debt off over 5 years.
Hi Ann,
Thanks for your question.
On the above page, we have listed some of the lenders that may consider you for a personal loan. However, please note that for non-bank lenders, the average maximum amount that you can get is only up to $5,000. For banks, one of the requirements is for you to have another source of income.
You may want to consider getting a balance transfer card to save on interest payments. Some balance transfer cards offer 0% balance transfer rate for up to 24 months. For more information about how balance transfer work, you can check this page.
Cheers,
Anndy