You may be eligible for personal loans in retirement if you can demonstrate a steady income stream (such as pension, super, or investments).
Secured loans are often easier for pensioners to get approval on, as they reduce lender risk.
Comparing lenders before applying can improve your chances of approval and help avoid higher fees or interest costs.
What are personal loans for pensioners?
A personal loan for pensioners is simply a loan available to people no longer in full-time employment and above a certain age.
As you move into your older years your lifestyle changes and so do your finances. When that happens, you may find that accessing finance is not as easy as it was when you were earning an income from employment.
Not having an income as well as being more senior can sometimes make getting a personal loan more difficult for people. Lenders can view it as a sign that you could be less likely to be able to repay the loan. However, this is not always the case. There are many lenders who may be willing to work with you when you are retired, particularly if you can show a regular income from something like your pension, super, investments or even part-time work.
These loans can help you access money if you don't have sufficient time to save for it or if you don't want to dip into your equity.
How do personal loans for pensioners work?
Personal loans for pensioners work much like any other personal loan, but they are available for people who are currently in retirement.
If you're retired, you may find it easier to qualify for a secured personal loan than an unsecured one. This is because securing a loan with collateral poses less risk to a lender as they can recoup the funds by selling your property if you become unable to repay the loan.
If you opt for an unsecured personal loan, you may find that as a retiree you are offered a shorter loan term than younger people or people in full-time employment to mitigate the risk to the lender. You may also be offered a higher interest rate and/or fees, although this will depend on the lender and on your credit rating.
Women more likely to be financially vulnerable in retirement
Women are more likely to reach retirement with little to no savings. Finder research shows that 35% of women aged 65+ have less than $1,000 set aside, compared to just 22% of men. This gap leaves many women financially vulnerable, with 1 in 3 single women over 60 living in income poverty.
What type of retirement situations are considered?
Self-funded retirees. If you earn income from investments such as rental properties, super or your own nest egg, you're a self-funded retiree. You might require access to finance because you don't have cash assets or you need quicker access to finance than your situation allows. While it can be difficult for some lenders to assess you, you're still eligible. Make sure you have as much proof of your assets and income as possible to prove you'll be able to manage your loan.
Those on the age pension, carer's supplement or disability pension. Earning Centrelink payments as income even if it is your sole income does not disqualify you from finance. Check the table below for loan options available to you.
Older Australians who are still employed. If you have steady employment, even if it's only part-time, this income will be considered by lenders. Minimum income criteria apply so check this before submitting your application.
Non-residents. The majority of lenders will require that you be an Australian citizen or permanent Australian resident. However, some lenders consider non-residents for loans even if they're older. You can compare temporary resident personal loans on this guide.
Those in difficult financial situations. If you receive a low income due to your family situation, you have debts or you're in need of emergency finance, there are options for you. Give the free financial counselling hotline a call on 1800 007 007 to find out what's available.
Which banks and lenders accept retiree applicants?
Below is a list of personal loans available for comparison on Finder. You can find out which ones will consider you for a loan while you are retired and the eligibility criteria you'll need to meet to apply.
Even if a lender does accept your pension income, your application will still be considered on a case-by-case basis.
Brand
Do they consider retired applicants?
Criteria
Learn about loan offerings
ANZ
Provide bank statements showing your income credits over a consecutive 3 month period, with your most recent credit made within 30 days of application. Also you must provide a Centrelink letter or statement from the last 60 days or a copy of your annual investment statement.
Bank of Melbourne
You can provide a Government Authority statement confirming your pension or allowance.
BankSA
You can provide a Government Authority statement confirming your pension or allowance.
Bendigo Bank
You may be eligible, but you'll need to call the bank directly to discuss your income.
CommBank
You'll need to go into a branch with your pension card.
Fair Go Finance
At least 50% of your income must come from employment.
Gateway Bank
You need to be currently employed.
Latitude Financial Services
You need to be currently employed.
IMB
You need to be employed in addition to your Centrelink income.
NAB
You need to prove a regular income and have good credit.
Plenti
You need to have a regular source of income above $25,000 a year that you can demonstrate.
RACV
You need to be in regular employment.
RACQ
You need to be earning a sufficient income to manage the loan.
Secured personal loans. These loans require you to attach a high-value asset as a guarantee. In return, you are able to borrow the value of that asset as a loan. Examples of assets include vehicles, term deposits or equity in your home.
Unsecured personal loans. You don't have to attach any asset to this loan as it's unsecured. You can use this loan for investment purposes, to take a holiday, buy a used vehicle or to consolidate debt.
Car loans. If you're looking to purchase a new or used vehicle, you can consider a car loan. These loans offer competitive rates because the vehicle you purchase is used to guarantee the loan.
Overdrafts. This is a convenient credit product that lets you draw over and above your account balance in your everyday transaction account.
Short-term loans. If you have bad credit or need emergency finance, a small amount loan may be one to consider. Keep in mind the high cost of these loans before you apply.
Government options. The federal government has a loan scheme for older Australians who want to access equity they have in their home.You can withdraw the loan amount as a lump sum, a fortnightly amount or a combination. The interest rate is lower than other personal loans, at 3.95%.
Pros and cons of personal loans for pensioners
There are a number of benefits and potential drawbacks to applying for a personal loan as a retiree. These include:
Pros
Cover expenses. A personal loan can help you to enjoy your retirement in the way you want to. Whether you want to take a trip away, renovate your home, buy a new car or any other legitimate purpose, a personal loan can help you to achieve this.
Protect your super/savings. Utilising a personal loan rather than dipping into your personal savings or superannuation fund means you aren't spending money that you may need later down the line.
Spread out the cost. Using a personal loan rather than paying for a large expense out of your personal savings enables you to spread the cost of your purchase(s) over a significant period. This can make budgeting much easier.
Cost-effective if secured. Using collateral on a personal loan, which may be easier to qualify for when you are retired, can reduce your interest rate.
Cons
Fewer options. You may find as a retiree that your options are more limited than someone younger and in full-time employment.
Higher cost. You may be offered a higher interest rate, especially if you're looking for an unsecured personal loan.
Lower chance of approval. A lender may be more likely to reject your application if you're not receiving an income from employment. Check the eligibility criteria carefully before applying and speak to the lender directly to see what your chances are.
Financial stress. You may be offered a shorter loan period than someone with a regular income. Having a shorter loan term will generally mean higher repayments, which might be difficult to keep on top of if you have a tight budget.
What can I use a personal loan for as a pensioner?
What to do when applying for a personal loan for pensioners
Read the eligibility criteria. You don't want to apply for a loan you're not eligible for, as this will ruin your credit score. You can speak to the lender directly if you're uncertain.
Check your credit score. You're generally more likely to be approved for a personal loan if you have a good credit score. You can check it for free with our credit report checking technology.
Consider using asset security. Using collateral can increase your chances of approval and potentially lower your interest rate. But you should also weigh up the risks involved. If you're unable to repay the loan, you'll likely lose your property when the lender sells it to recoup the loan funds and costs.
Consider a guarantor. If you don't have or wish to use asset security, you can also consider a loan guarantor. But if for any reason you're unable to meet your repayments, your guarantor will be responsible for your loan.
Make a budget. If you don't already have a budget, it's a good idea to make one that consists of your current inflow and outflow. Then factor in your potential loan repayments (you can use our personal loan calculator to help you) and see whether you will comfortably afford your repayments.
What to avoid when applying for a personal loan for pensioners
Over-borrow. When you consider your potential loan repayments alongside your budget, it's important to be realistic about how much you can reasonably afford to repay. If you're retired, the loan term you could be offered may end up being shorter than you would ideally prefer, and a longer loan term means higher repayments. Make sure that you can factor this comfortably into your budget before submitting an application.
Take big risks. Don't use asset collateral or a guarantor if you are unsure if you can meet the repayments comfortably. You could lose your property or the property of a loved one if for any reason you are unable to meet your repayments.
Avoid doing your homework. Reverse mortgages and refinancing could be risky and/or expensive if you are not sure about everything that is involved. Know exactly what you're applying for and how much it will cost you before submitting a loan application.
How do I know if I'm eligible?
Most lenders will display their eligibility requirements on their website. Some will also have quizzes you can take where you can input more about your financial circumstances to know if you're eligible.
If it's unclear whether you meet the minimum eligibility criteria (like if you have income from investments that isn't regular) then it's best to get in touch with a lender directly before submitting your application.
Every personal loan application will be listed on your credit file and can hurt your chances at being approved for subsequent loans. Lenders will not be able to tell you for sure whether you will be approved until you submit your application, but they may be able to clarify certain criteria or provide additional details.
To give yourself the best chance of being approved, make sure you have all of your information on hand before starting the application. This includes:
Personal information. Your name, contact, identification information and details regarding your family situation.
Loan details. Explain how much you need and the purpose of the loan.
Financials. Remember to include all sources of income and provide evidence of this. You'll also need details of debts and liabilities.
Assets. What assets do you hold? This may be your own home, rental properties or vehicles.
You may be able to save the form if you don't have all of your information on hand to come back to it later, or download a PDF of the application form from the lender's website to find out everything you need before you start.
Personal loan applications usually don't take more than 10 to 15 minutes to complete if you have all of your information on hand.
Frequently asked questions about personal loans for pensioners
The amount you can borrow as a pensioner depends on various factors, including your income, credit history and the lender's criteria. Generally, lenders may offer loan amounts to pensioners ranging from $2,000 to $50,000, depending on your financial situation and ability to repay the loan.
Yes, pensioners can get personal loans, although the options may be more limited compared to those for working individuals. Lenders will assess your income, which may include your pension, as well as any other assets or savings.
The Pension Loans Scheme (PLS) is a government initiative that allows eligible pensioners to receive a loan that is secured against their property. The loan provides regular payments to supplement your pension income. The amount you can borrow depends on the equity in your home and your age, and the loan is repaid when the property is sold or the pensioner passes away.
Yes, you can borrow money if you're retired. Lenders will usually consider your retirement income, such as superannuation, investments or pension payments, when assessing your loan application. It's important to demonstrate your ability to repay the loan, so you'll need to provide documentation that proves your income in retirement. Some lenders may have specific loan products designed for retirees.
Sources
Why compare personal loans with Finder?
Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024.
See full bio
Elizabeth's expertise
Elizabeth
has written
202
Finder guides across topics including:
Bria Horne was a writer for Finder, with a specialist knowledge of personal loans, car loans and business loans. Originally from the UK, Bria has been a professional personal finance writer in Australia for over 2 years. She has an M.A and B.A in Philosophy and Literature from the University of Sussex, and previously worked on the UK’s leading hospitality publication.
See full bio
If you're wanting to bolster your application, buy an asset with your partner or apply for a loan you're not eligible for by yourself, you can consider a joint application personal loan.
Find a low interest loan by comparing your options with Finder. See interest rates, fees, and features for loans across Australia, plus guides to help you get the best deal.
Find out exactly what you need to know when it comes to cheap personal loans, including working out if a loan is really competitive.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
The information provided by Frankie is general in nature and has been prepared without considering your objectives, financial situation or needs. Frankie may make mistakes so it's important that you review the information before deciding. By messaging Frankie, you agree to our Terms and have read our Privacy Policy.
Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest. 
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
