Personal loans for casual and part-time workers

What is the difference between a part-time and casual employee?

Both casual and part-time employees work across all industries, including office work, hospitality and even government work. For any industry, these employees:

Tips to get approved for a loan if you work casually

Some casual workers may find it easier to access loans than others, because they are deemed to be less of a risk by lenders. Here are some things casual workers can do to help them appear less risky:

• 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. However, some lenders only require six 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 what is shown on your credit report 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.
• Provide loan security. If you own an asset of value, such as your home or a vehicle, offering this as loan security could help you to get approved more easily and/or allow you to access a lower rate loan. Offering security reduces the risk to the lender. This is because they can repossess the asset should you default on the loan.

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.

Tips to get approved for a loan if you work part-time

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 you been working for at least 3 months? Many employers require you to be working at least three months as this shows your employment is stable, and in some cases, that you're out of your probation.
• 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. If you are paid in cash, make sure you deposit this into your bank account or get payslips from your employer to be able to prove your income.
• 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.

What criteria do you need to meet to be approved for a personal loan?

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, some personal loan terms and conditions state you must be "in regular paid employment" but there is flexibility within the criteria.

Take a look at some personal loan options for part-time and casual employees below:

What do you do if you can't get a personal loan?

There are a couple of options available to you if you're a casual employee or self-employed, and are struggling to get approved for a personal loan.

Short term loans

If you are in need of a loan to cover a short term cash shortfall and you don't meet the criteria for a standard personal loan, a short term loan is another option you can consider. However, it's important to keep in mind that short term loans are much more expensive than personal loans from banks and have to be repaid over much shorter terms.

Short term loans 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 1 year and are for amounts of $100 to $2,000, but higher amounts up to $5,000 are also available.

Guarantor loans

Getting a guarantor loan for your personal loan if you're a part-time or casual worker could also be an option. A guarantor is someone who is legally responsible for meeting your repayments should you default on the loan. Usually, guarantors are required to be homeowners with good or excellent credit scores.

So, if you have a friend or close family member who meets this eligibility and is willing to go guarantor on your behalf, it may improve your chances of having your personal loan application accepted. If you're a part-time employee, it may also help you to access a greater amount of funding than your salary would normally allow.

As casual and part-time employees, what can a personal loan be used for?

Personal loans for casual and part-time workers can be used for almost any legitimate purpose. Usually, this purpose will have to be disclosed to your finance provider during the application process. Legitimate reasons for taking out a personal loan include:

• Wedding
• Holiday
• Car purchase
• Car repairs
• Home renovation/improvement

If you're unsure as to whether your loan purpose will be considered "legitimate" it's a good idea to speak to your provider prior to submitting an application.

Short term loans available to casual and part-time employees

Sort by:

Name	Product	Maximum loan amount	Term of Loan	Turnaround time	Arrears Fee	Costs	Fortnightly Repayment (for $1500 Loan)
Sunshine Short Term Loans		$2,000	9-14 weeks	30 minutes - conditions apply	$35	20% of loan amount + 4% of loan amount each month	$396	A small loan up to $2,000 that you repay over 9-14 weeks. Loans approved and funded in as little as 30 minutes. Centrelink must not be your primary income	Go to site More Info	Compare	loading Fetching your data...
Jacaranda Finance Personal Loan		$15,000	9 to 24 months	Under 1 hour - conditions apply	$35	$249 - $990 depending on credit		Borrow up to $15,000 and get access to your funds in as little as 1 hour.	Go to site More Info	Compare	loading Fetching your data...
Nimble Small Loan		$2,000	62 days to 9 months	1 hour - conditions apply	$15	20% of loan amount + 4% of loan amount each month	$396	A loan up to $2,000 with terms up to 62 days to 9 months. Centrelink cannot be your primary source of income.	Go to site More Info	Compare	loading Fetching your data...
Fair Go Finance Small Loan		$2,000	1 to 12 months	24 to 48 hours	$35	Establishment Fee of $18 – $400	$354	A small loan between $300 and $2,000 that can be funded in 24 hours.	Go to site More Info	Compare	loading Fetching your data...
Credit24 Short Term Loan		$2,000	4-12 months	Same day - conditions apply	$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. Centrelink borrowers are considered as long as Centrelink payments are not more than 50% of income.	Go to site More Info	Compare	loading Fetching your data...
Credit24 Medium Term Loan (Good Credit)		$5,000	12 to 24 months	Same day	$10	$400 establishment fee + 48% p.a. interest		A small loan with long terms: Apply for up to $5,000 and have up to 2 years to repay.	Go to site More Info	Compare	loading Fetching your data...

loading

Compare up to 4 providers

Clear selection

Compare

What documentation is required?

If you're a casual employee or employed part-time, the following documentation will be required when applying for a personal loan:

• Proof of ID
• Details of and proof of address
• Proof of employment (you may also be required to have been in your current role for 3, 6 or 12 months)
• Proof of income

Additional documents you may need to provide:

• A letter from your employer
• Details of your guarantor
• Details of loan security (e.g. a vehicle or other asset of value)

• 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.

The right loan will depend on your needs and situation, so starting a comparison using the table above can help you narrow down your choices.

You can click through to the review pages from the table above and once you've found a loan you're eligible for and that you want to apply for, click "Go to Site" to submit your application.

Picture: Shutterstock