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Pensioner loans

Find out the loan options available to pensioners and the eligibility criteria that apply.

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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, as well as the eligibility criteria and costs that apply.

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⚠️ Warning about Borrowing

payday-warningDo 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.

Retired? Click here to see your loan options

What's in this guide?

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. 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 and shorter repayment periods than other standard personal loans, and can involve many extra charges.
  • 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. These are loans that are specifically designed for people who receive the age pension, are self-funded retirees, or are pensioners. Follow the link below to find out more about retired loans.

Loan options for retirees

Credit24 Short Term Loan

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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
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Updated April 7th, 2020
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
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$10
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.
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Some of the brands that consider pensioners for a loan

BrandCan pensioners apply?What conditions are there?
Cash ConvertersYesYour loan repayments cannot exceed 20% of your income from the pension.
Cash StopYesYou're able to apply.
ClearCashYesYou're able to apply, applications are handled on a case-by-case basis.
Credit24YesAt least 50% of your income needs to come from outside of Centrelink payments.
Ferratum LoansYesYou need to earn 50% of your income from outside of Centrelink payments.
Good to Go LoansYesYou're able to apply, applications are handled on a case-by-case basis.
NimbleNoYou need to be employed and your primary source of income can't be from Centrelink.
Rapid FinanceYesYou're able to apply, applications are handled on a case-by-case basis.

Banks that may consider you for a loan

BrandCan pensioners apply?What conditions are there?
ANZYesYou need to earn $15,000 p.a.
Bank of MelbourneYesAge pension and DSP are accepted.
You'll need to provide a letter from Centrelink detailing your pension payments.
BankSAYesYou're able to apply, applications are handled on a case-by-case basis.
Bank AustraliaYesYou're able to apply, applications are handled on a case-by-case basis.
BankwestYesDSP and parenting payments are accepted.
You'll need supplementary income to be able to apply.
Bendigo BankNoYou need to be in regular, paid employment.

Centrelink payments are accepted with supplementary income.

CitibankYesYou need to earn $40,000 p.a.

Age pension is accepted. You can apply if your pension income is taxable.

Commonwealth BankYesYou need to earn $14,000 p.a.

Parenting payments, DSP and carer's pension are accepted.

NABYesSome Centrelink income is considered.
You need to demonstrate you can afford the loan repayments.
St.GeorgeYesParenting payments and DSP are accepted.
WestpacYesYou need to earn $15,000 p.a. DSP is accepted.

What are the risks of no credit check loans?

  • Unreputable lenders. Check the lender has a credit licence and is not charging you more than ASIC allows. The lender should be easily contactable.
  • Unaffordable repayments. Consider the size of the regular repayments and ensure the loan is able to be repaid during the loan term. If not, extra fees apply to extend it. Be careful, since repayment periods for these kinds of loans tend to be shorter than regular loans.
  • Multiple applications. Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
  • Check rates and fees. Establishment and monthly fees are capped, so be wary of lenders quoting prices beyond the legal maximum amounts. Be crystal clear on what will be charged for late payments or a default on the loan. The total cost of the loan matters here - lenders can charge interest rates on top of everything else.
  • Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can't repay.

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. This scheme allows access to capital tied up in assets to provide extra income. Fortnightly payments can add up to the maximum amount of the Age Pension.
  • 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. Those who are eligible 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

  • Saver Plus
    This program helps families and low-income earners to improve their finances by developing savings plans and building assets. Savings 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.

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 eligibility it would be best to contact the brand directly.

Be aware that every loan application made gets listed on a credit file and too many applications within a short space of time can affect chances with a prospective lender. Contacting a bank directly via phone, online, or in branch can help determine whether they will approve a loan.

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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308 Responses

  1. Default Gravatar
    sharelleOctober 17, 2019

    is there any loan where i can apply without a mobile phone?

    • Avatarfinder Customer Care
      NikkiOctober 17, 2019Staff

      Hi Sharelle,

      Thanks for getting in touch! You can apply for all the loans on the pensioner loans page without a mobile phone. For more information on how you can apply for pensioner loans, please go to the table showing some personal loan options that are available and you can click “Go to Site” to submit your application.

      As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.

      Best,
      Nikki

  2. Default Gravatar
    DonnaJanuary 9, 2019

    Hi l receive DSP l would like to apply for a $5000 personnel loan repayed over 2 years , l privately rent and have no debt , own my own car would l have a problem getting a loan through a bank ?

    • Avatarfinder Customer Care
      JohnJanuary 10, 2019Staff

      Hi Donna,

      Thank you for reaching out to finder.

      The general eligibility requirements are the following:

      Australian citizen or Australian permanent resident
      18 years or over
      Have a regular income

      The page offers you a list of lenders that you could reach out to if you wish to make an application. 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

  3. Default Gravatar
    StevenJanuary 9, 2019

    I’m in dire straghts and need a cash advancement on my general electric pension check of 580.00 I live with my girlfriend and have no expenses, we’re do I turn too

    • Avatarfinder Customer Care
      JohnJanuary 10, 2019Staff

      Hi Steven,

      Thank you for reaching out to finder.

      The page we are on offers a list of lenders that you could reach out to. 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

  4. Default Gravatar
    BonnieDecember 8, 2018

    I need extra money for car repair and Xmas. Online my dsp says clearly that I’m eligible for a advance loan but the operator would not allow it.

    • Avatarfinder Customer Care
      JohnDecember 12, 2018Staff

      Hi Bonnie,

      Thank you for reaching out to finder.

      You are on the right page when it comes to pensioner loans. You may want to check the conditions provided per lender to see your qualifications prior to opening an application. You may also contact their customer support department to know more about the qualifications to take out a loan. Hope this helps!

      Cheers,
      Reggie

  5. Default Gravatar
    BruceDecember 5, 2018

    How do I qualify for a small loan?

    • Avatarfinder Customer Care
      JhezDecember 11, 2018Staff

      Hello Bruce,

      Thank you for your comment.

      If you’re referring to the qualification for a pensioner loan, basically, you just need to meet the lending requirements. As long as they can see that you have a stable income and you’re capable to repay the loan, then you may be eligible.

      You can see the lenders listed above that consider pensioners. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  6. Default Gravatar
    GEOFFNovember 8, 2018

    Im disability pensioner & ex bankrupt for many yrs I will have saved $2,500 + by may 2018 i am wondering if any financial services will lend me $6,000 long term repayments over 5 yrs plus i want to use the money above mentioned as a deposit in bank so when required gor copy of 90 days past to present bank statement 2018 to 2019 yrs it will show that i have a good track record of saving & direct-debts no defaults etc can you please give me any constructive advise i thank you for your time and appreciation regarding my online email enquire

    • Avatarfinder Customer Care
      JoshuaNovember 21, 2018Staff

      Hi Geoff,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      I can’t provide a personalised advice since I’m not completely familiar with your situation, but generally, what the banks would want to know is that you have a stable source of income and you have the ability to make repayments. If you have that, then your chance of getting approved would increase.

      Basically, the lenders who might approve your loan application are the lenders listed above. The maximum amount of money you would be approved for would depend on the lender. Please review the tables found above especially the ones with the check marks. They are more likely to be able to help you in your situation. Please discuss with them your eligibility and options.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  7. Default Gravatar
    TracyOctober 24, 2018

    How can I apply for a $110, 000 loan, please ??

    • Default Gravatar
      JoelOctober 24, 2018

      Hi Tracy,

      Thanks for leaving a question on finder.

      There are a few considerations that come into play when determining how much you can borrow with a personal loan, including how much you can afford to repay and your loan purpose. But in terms of how much you can apply to borrow, it comes down to the type of loan you apply for. Unsecured personal loans usually offer loan amounts of between $1,000 and $50,000 while secured personal loans and car loans usually offer loan amounts of between $3,000 and $80,000.

      Assuming you are a pensioner looking to have a loan of this amount, it would be difficult to get approved because most lenders will only lend up to 2000$ in this page and getting approved for a huge amount of money as a personal loan will have stricter eligibility criteria such as your credit score, employment and residency.

      If you need real time answers to your questions, you can send us a message via chat on the bottom right next time. :)

      Cheers,
      Joel

  8. Default Gravatar
    MichaerlOctober 4, 2018

    Hello. I am an age pensioner, I am separated from my wife, we are putting our house on the market, half being my share, I would like to get a loan of $5000.00 that would help to improve the house before selling. How would I being separated affect my chances, and what institution would give me a loan, My share of the house would be approx $250.000.00. Thank you.

    • Avatarfinder Customer Care
      JhezOctober 5, 2018Staff

      Hello Michaerl,

      Thank you for your comment.

      I’d refer you to this page which will guide you about loans for home improvement or renovations. The page does not specifically state that a pensioner can be considered for this kind of loan however you may be considered when you disclose your financial assets.

      We also have a page about home loans for pensioners which will guide you on how to go about getting a loan when you’re on a pension. Please compare the loan products listed on the page and click either Enquire Now or Go to Site button to inquire or apply.

      Please note that lenders consider your income and financial position in getting a home loan for your house renovation. A pension is lower than the normal income of other applicants who are applying and the income level required. If you have assets and believe you can meet lending requirements, it might be a good idea to discuss your options with the financial provider or mortgage broker, as applying online may be difficult if you can’t demonstrate your capacity to repay the loan.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  9. Default Gravatar
    TyroneSeptember 24, 2018

    I’m on DSP and I owe money $830. I would like to borrow $3000 + $830 (I have a good credit rating) who will give me a loan?

    • Avatarfinder Customer Care
      JhezSeptember 24, 2018Staff

      Hello Tyrone,

      Thank you 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.

      The page does show the lenders that accept Centrelink benefits as an income, which means that they may consider you for a loan. Please read the guide and compare the lenders, once decided, please click the Go to Site button. It is important to ensure your eligibility before submitting an application for the loan.

      Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  10. Default Gravatar
    LomekinaAugust 24, 2018

    I need $5500 for a hair transplant , who should i approach,what should i do.But the problem is I’m on DSP.

    • Avatarfinder Customer Care
      JohnAugust 25, 2018Staff

      Hi Lomekina,

      Thank you for leaving a question.

      For this, you may need to consult a lender directly who offers pension loans just like the ones on this page and check your eligibility as well as requirements necessary to take out a loan. Just ensure that you meet these requirements first prior to taking out the loan. You may also speak to the lender’s representative to check on your qualifications. Hope this helps!

      Cheers,
      Reggie

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