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.
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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. |
| 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
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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.
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I have to do some major repairs to my car namely the gearbox about $3000.00 to rebuild. I do not want to buy another car and would like to know how much I can borrow on that amount to get it fixed please or if I can borrow that amount and also repayments to suit my pension. Thank you graeme
Hi Graeme,
Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?
We understand that you’d need a reasonable amount of money to do major repairs on your car.
Please note that we’re a product comparison website and we do not represent any company we feature on our site. We provide general information on products to assist you in your buying decision process hence we cannot provide a quote or an estimated amount you need to be approved of a loan nor recommend product / service that is rightfully fit for you.
Here are loan options that you can review:
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 information above shows a number of lenders you can choose from. Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Cheers,
Nikki
All paragraphs talk about “Loans”. I want a portion of my home cash which will be repaid upon my death. Are you talking about the same thing?
Hi Wally,
Thanks for getting in touch with finder. I hope all is well for you. :)
If you are referring to using your home cash as a security for your loan, this can be an option. However, it would depend on the lender you want to work with. To know whether they offer this type of arrangement, you may want to directly get in touch with your chosen lender.
Loans on our page refer to the loans available for people who receive Centrelink payments, including pensions.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi, I’m on disability pension aboriginal and tsi. Can I get a home loan?
Hi Warren,
Thanks for leaving a question on finder.
You can definitely get a home loan as an aborigine. Please go here. The Australian Government has introduced a range of measures to assist Indigenous Australians in realizing this dream through the Indigenous Home Ownership Program. This program is designed to help Indigenous Australians purchase their own home or land with specially designed home loans.
Cheers,
Joel
I am employed working 38 hr week but currently listed as casual. I have been working for the employer for 5 months. I’m looking to get an unsecured personal loan. What chances considering my employment status?
Hi Jemma,
Thank you for getting in touch with finder.
One of the criteria to consider when applying for a loan is you need to earn at least $15,000 p.a. and have been employed at your current work for six months or earn at least $14,000 p.a. after tax.
To know more about loan options available for you, please check out this link.
I hope this helps.
Have a great day!
Cheers,
Jeni
I’m a 36 year old single mother on a dsp single parenting pension, I’m in desperate need of a car I have very minimal living expensives and need to borrow about 15000.
Hi Becca,
Thank you for reaching out to us.
There are many car loan options that you may take advantage of even though you are receiving a Pension.
You may refer to this page for list of Banks/ Lenders that offers Car Loans to Pensioners. Banks/ Lenders will look into all your incomes to assess your repayment capability.
I hope this helps.
Please do not hesitate to reach out to us again if you have additional questions.
Cheers,
Ash
We are on pensions myself a disability and a work over payment of $100 a week my wife on a carers we want to borrow $4000 to add a sunroom to our house we have assets such as equitie in our house late model SUV and valuatedjewelery that is valued over 7 times the amount we want to borrow we are aged in our early 50s and obviously have a fixed income what loan options do we have please
Hi Paul,
Thanks for getting in touch with finder.
You can use the equity in your home to apply for a home equity loan. To learn more, please visit this page.
Moreover, you can use your SUV and valuable pieces of jewelry as a form of collateral and apply for secured personal loans.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
After intense Surgery I have to relocate our home My husband to a Facility – he has Alzheimer – This is so hard Ive looked after him for 7 years- Myself to my Daughters home My problem is I need to find somewhere able to finance our move plus pay off last debts Please help I am nearly at breaking down Thank You for your help
Hi Alene!
Thanks for contacting finder. We completely understand what you’re going through.
Finder has Short Term Personal Loans that you may want to look at. This will help you decide on how to finance your move to your daughter’s home and to pay off any remaining debts you may have (property, medical)
Here is the link: https://www.finder.com.au/personal-loans/low-interest
Hope this helps!
Hi
My father has recently moved in to a village type situation and will cost about $280000.00 to buy, he has put down a deposit of about $10000
He still owns a small farm in the country worth about $600000.00 and he is on a pension.
What i would like to know is there a loan out there that uses his property for security without any repayments , only an agreed fee for interest and cost until his property sells? because country property’s tend to take a bit longer to sell.
Thanks
Hi Darren,
Thanks for your inquiry.
Just to confirm, who would be borrowing, is it your father? If so, the possible lenders he can check with are the ones listed above. These lenders offer loans to pensioners. Best to get in touch with them directly for the possible options/eligibility. Otherwise, if you are checking the possible secured personal loans, you may refer to this page and check out our guide.
Cheers,
May
My husband & I are on Disability & Carer Pensions.
We own our own home (720,000)
We own our 2012 Hyundai Elantra
We would like to consolidate credit card debt ($35,000) into a lower interest rate so as we can pay it off faster & add an extra ($5,000) for a front yard fence – a total of ($40,000).
Presently, we make a total of $450 per fortnight for the 2 credit cards alone ($900 per fort).
Hi Maria,
Thanks for your inquiry
Centrelink benefits can be classed as genuine income by some lenders and can be used as income to assess your serviceability for a debt consolidation loan. It’s important to calculate your repayments and find out if your lender accepts your types of income. If you are on Newstart or Youth Allowance you may need to speak to your creditors and work out a repayment, please.
Please note that eligibility requirements will vary among lenders.
Hope this information helps
Cheers,
Arnold
I have just entered a part 9 debt agreement about 3 weeks ago. This week I’ve found out that my son needs medical treatment that will take 12 months in the public system. Due to his age waiting 12 months will cause further speech delays. I’ve tried to access super with no luck. Is there a loan option for me?
Thank you.
Hi Arnie,
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.
You may also check this page for helpful info and compare your options for loans if you’re under a part 9 debt agreement.
Please click the name of your preferred lender to find out the details and the minimum eligibility. You may then click the green “Go to Site” button to submit your loan application online.
Best regards,
Rench