A guide to finding a loan when you're working part-time or casually
Working irregular hours is common in Australia. Whether you're a uni student, a parent, a shift-worker, or a role where your hours change week to week, you can still be eligible for a loan. Lenders see casual workers as more of a risk because there is no guarantee of continued work. If you work in casual or part-time employment it’s important to know that there are loan options out there to consider.
What is the difference between a part-time and casual employee?
Casual and part-time employees work across all industries, including office work, hospitality and even government work. For any industry, these employees:
| Part-time employees | Casual employees |
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Casual workers: What are your loan options?
Personal loans
The majority of lenders require you to be in permanent/full-time employment in order to obtain finance. However, some lenders' minimum criteria just requires you to earn a regular income or requires that you meet a minimum annual income. For example, Aussie Personal Loans terms and conditions state you must be "in regular paid employment" but there is flexibility with the criteria. Take a look at some of your other options below:
Personal loans for casual employees you can compare
Short-term loans
These are small loans that are used to cover unexpected expenses or if you need a smaller loan amount for less than one year. These loans require evidence of regular pay, but casual workers who are paid the same each week by working regular hours may still be eligible. These loans are for durations of 16 days to one year and are for amounts of $100 to $2,000, but higher amounts up to $5,000 are also available.
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.
How can part-time employees get approved for loans?
If you're employed part-time you will have more loan options. Here are some tips on getting your application across the line:
- Check the minimum income. As your employment is considered more stable, you will just need to ensure you meet the minimum income criteria with regards to employment requirements. This is usually around $15,000-$20,000 p.a.
- Have been working for at least three months. This will show your employment is stable.
- Receive your pay into your bank account. Along with payslips, this will be a way for lenders to check your income against the information you provide in your application.
- Get in touch with the bank if you're unsure about eligibility criteria. This is the best way to check anything before submitting your application and reduces the risk of having a rejected application listed on your credit file.
Compare your unsecured and secured personal loan options
How casual employees can appear as less of a risk to lenders
Some casual workers may find it easier to access loans than others and this is because they are deemed to be less of a risk by lenders. Here are some things casual workers can do to help them access a loan:
- Work for a year, then apply. Banks and lenders view people in casual employment as less of a risk if they have been employed at the same place for at least 12 months. This is partly because after 12 months of casual employment you have the right to ask your employer to be classed as a part-time worker. Some lenders, however, only require 6 months of steady employment to approve you for a loan.
- Get a letter from your employer. Much of the risk associated with lending to casual employees is the fear that they could stop receiving work. By providing a letter from your employer that confirms your employment and ensures the lender that there's no reason this arrangement shouldn't continue in the future, it could help your application.
- Make your repayments on time. In March 2014, new credit reporting reforms were introduced to give lenders more detailed information of your credit history. Now lenders will be able to see if you have made repayments to banks and other lenders on time.
- Don’t apply for multiple loans. Lenders are able to see any credit accounts and loans that you apply for and if you make multiple applications in a short space of time you may appear to them as an irresponsible borrower.
- Save. If you can show evidence of your savings to a lender, they may be more inclined to give you a loan. For example, if you are looking to buy a car and need a $5,000 loan and have $2,000 saved in a high interest savings account, the lender may see you as less of a risk.
- Apply with your own bank. Your own bank will have more concrete evidence of your spending and saving history than is shown on your credit file and if this history is positive then you may be more likely to secure a loan.
- Consult an accountant. An accountant will be able to help you keep track of your tax returns, savings and spending. They’ll have a record of everything so when you apply for personal loans, all the documentation is already there.
If you’re a casual worker, the best way to secure a loan is by doing your research and comparing what is out there before you start applying.
Picture: Shutterstock
I’m a casual shift that is working a minimum of 15hrs – 25hrs+. So i’m wondering if it’s possible to get a $36,000 loan. Been working at this place for almost 10months now.
Hi Tai,
Thanks for your question.
If you are a casual employee, some of the lenders above may consider you for a loan, subject to other eligibility criteria. To learn more about the eligibility criteria and requirements to apply for a particular loan product, feel free to visit its review page. If you are ready to apply, just click the ‘go to site’ button.
Cheers,
Anndy
I work at a small gas station as part time working 24 hours a week. Could I take out a small loan ?
Hi Dixie,
Thanks for your question.
You can review the criteria and requirements and discuss your loan options with a lender listed above. There are also lenders that offer short-term loans that you can compare.
Hope this helps.
Cheers,
May
Hi i want to apply for a loan of 60 000 please and iam a temporary on year contract which sure next week i will be permanent
Hi Tshego,
You can find lenders that consider casual and part-time applicants on the page above, but as you’re on a temporary contract you will need to get in touch with the lender to confirm your eligibility. Whether or not you’re approved for a loan as high as $60,000 will depend on your ability to manage the repayments.
I hope this helped,
Elizabeth
Hi im Anathi i need loan im working security my salary is 4000 and I need 2500 I’m going to pay on friday 26 but the problem is i don’t have payslip what must i do?
Hi Anathi,
If the loan you’ve chosen requires payslips as part of the application process you may need to ask your employer for payslips so you can apply. You might also be able to inform the lender of your situation and ask if copies of your bank statements (where your salary is deposited into) will be enough.
However, some lenders may not require payslips to approve you for a loan. They will just require the last 90 days of your transaction history.
I hope this helps,
Elizabeth
My 17 year old would like to get a loan for a new car. She has worked for the same employer from age 14. She is guaranteed employment when she finishes yr 12 this year. Is it possible for her to get a loan in her name or a co-loan with her father?
Hi Jayne,
It’s not possible for someone under the age of 18 to apply for a loan, she’ll need to apply for a guarantor personal loan. With this loan her father will need to meet all of the eligibility criteria and will essentially be responsible for the loan should she not be able to make the repayments.
Many major banks offer guarantor personal loans, so you can compare your options and pick one that will fit you best.
I hope this helps,
Elizabeth
Of all the products you claim assist people whose sole or combined income include Centrelink I’ve not found one single product that does actually do what you are claiming. My question is why do you bother?
Hi Jo,
Lenders have a variety of criteria they consider when approving applicants for loans, with income just making up one part of the application process. So when we list options for Centrelink borrowers, it is lenders that consider people who receive part of or their whole income from Centrelink payments – it doesn’t mean they will be automatically approved. Other things, such as debt, assets and the overall ability to manage the loan comes into play when a lender decides whether or not to approve an application.
Just to make sure you’re on the right pages, here’s a list of options for Centrelink borrowers, here’s a list of options if you are unemployed (i.e. your entire income comes from Centrelink) and here is a list of options if you receive some sort of pension. If you are a retiree you can take a look at this page.
Hope this information will help,
Elizabeth
Good day! I am Lorilee. I just want to ask if I am able to get a loan of ₱10,000.00, I am 20, I am employed recently but for almost a week. I’d never reach a minimum rate. But I need it for emergency purpose. Will you help me with it. Thank you!
Hi Lorilee,
The options for casual and part-time employees are listed on the page above, but unfortunately as you have only been working a week I am unsure if you will be able to get a loan. Lenders usually need to see evidence of a stable employment history before they will approve you for a loan, and so require you to be employed for at least three months before they will approve you.
Thanks,
Elizabeth
Hello there, my name is luis Raccuglia, I just wanted to know, can a casual worker who been working in the same place for close to 4 years , be able to take a personal loan for example between $10,000 to 30,000 dollars , or an unsecured personal loan, or my other question would it be easier if you take the loan with a partner so use two names instead of one in the loan application, any more neo would be appreciated
Hi Luis,
Your eligibility for a personal loan will depend on your income, your financial stability and your employment situation. Each lender will have set criteria to determine the risk they are taking on by lending to you. One option may be to talk to your current bank if you have a good relationship with them as they may be more willing to offer you a loan. As you mentioned, another option is to apply for a loan as part of a joint application – you can find a list of lenders who offer joint application personal loans on this page.
I hope this will help.
Thanks,
Elizabeth
I’m a 17 year old who wants to take a $2000 loan out to buy a first car. I work part time and have a minimum set pay of $150 per week with no expenses.. Therefore a minimum of $600 per month. Am I able to get a loan out or have someone over the age of 18 sign for It but linked with my bank account details?
Hi Lani,
Thanks for your question.
You’re unable to get a loan on your own as you’re under the age of 18, but you will be able to get a loan with a guarantor (someone over the age of 18 who is willing to take on the responsibility of the loan with you). Keep in mind you will still need to be eligible for the loan, so your income and financial standing will be judged by the lender. You may want to consider your current bank for a loan as you have a relationship with them. However, one lender that considers under 18-year-olds for loans with guarantors is Westpac, so they are an option for you.
I hope this has helped.
Thanks,
Elizabeth
I’m seeking a $4000 loan. I don’t start work for another week, I have poor credit rating but can I use my $14,000 new car as collateral?
Hi Damo,
Thanks for your comment. Many short term lenders require you to have steady employment of at least minimum 3 months before considering you for any form of credit.
If you have a relationship with your existing bank it might be worthwhile talking to them.
Best of luck.
Cheers
Matt