Retired loan

Loans for retired people

Rates and fees last updated on

You can still access finance if you're retired. Read on to find out what your options are.

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. However, there are lenders that will consider you for a personal loan as a retiree. 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. Find out what your loan options are in our guide below.

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 are referred to as a self-funded retiree. If you're in this situation you may require access to finance because you don't have cash assets or you need quicker access to finance than your situation allows. While your situation can make it difficult for some lenders to assess you, you are still eligible for personal loans. Make sure you have as much documentary proof of your assets and income as you can locate to prove to the lender 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 that are available to you.
  • Older Australians who are still employed. If you have steady employment, even if it is only part-time, this income will be considered by lenders. Remember minimum income criteria will 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 are older. You can compare temporary resident personal loans on this page.
  • Those in difficult financial situations. If you receive a low income due to your family situation, debts, or are 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.

"What loan options can I consider as a retiree?"

Below is a list of personal loans available for comparison on finder.com.au. You can find out which ones will consider you for a loan while you are retired and the eligibility criteria you will need to meet in order to apply.

BrandDo they consider retired applicants?Criteria that appliesLearn about loan offerings
ANZtransparent--green-tick You need to provide evidence of regular income, for example from investments, rental income or Centrelink
AussieNoYou must be in regular paid employment
Bankwesttransparent--green-tickYou need proof of income, for example a letter from Centrelink or from your super fund
Bank of Melbourne No You're required to be employed for a personal loan
BankSAtransparent--green-tickThe age pension is an acceptable form of income
Bendigo BankNo You need to be in paid employment
Cashfirst NoYou need to be in paid employment
Commonwealth Bank transparent--green-tick You must earn over $14,000 per year and meet the residency requirements
CUA No You need to be currently employed
Fair Go Finance No Centrelink cannot be your only source of income
Gateway CUNoYou need to be currently employed
Latitude Financial Servicestransparent--green-tickYou need to earn over $24,000 p.a. and have a good credit history
IMBNoYou need to be employed in addition to your Centrelink income
ME Banktransparent--green-tickYou can apply, applications are handled on a case-by-case basis
NABtransparent--green-tickYou need to earn a regular income and have good credit
NRMANo You need to be in regular employment
RACV No You need to be in regular employment
RACQtransparent--green-tickYou need to be earning a sufficient income to manage the loan
RateSettertransparent--green-tick You need to have a regular source of income that you can demonstrate
SocietyOnetransparent--green-tickYou need to earn more than $25,000 p.a.
St.George transparent--green-tickYou can apply, applications are handled on a case-by-case basis
Westpactransparent--green-tickYou need to have a regular income

Loans that are available to pensioners and retired people

There are a few different types of personal loans available to you as a retiree.

  • Secured personal loans. These loans require you to attach a high-value asset as a guarantee, and 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.
  • Reverse mortgages. These loans offer you a line of credit, regular income stream or lump sum payment by borrowing against the income in your home. While traditionally thought of as high-risk, reverse mortgages are becoming a more mainstream borrowing method.
  • 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.
  • Bad credit loans. There are still loan options if your credit history has a few black marks. Some loans are available up to $5,000 or more for bad credit applicants.
  • Debt consolidation loans. Some loan options are specifically tailored to debt consolidation if that's the loan purpose you have in mind.

Linda and Grant

As a couple, Linda and Grant receive $1,270 in super repayments every fortnight. They’ve paid off their house and have a small source of additional income from a rented-out investment property. While their payments are enough to support their lifestyle, they don’t have the means to make additional larger purchases. When their car stops working, they want to take out a personal loan to buy a replacement.

Option 1: They are currently with the Commonwealth Bank and want to take out a loan with them. They look and see that they can borrow $5,000 at an interest rate of 9.49% p.a* for four years. While the repayments of $125.59* are manageable, CommBank requires the car to be less than five years old. Linda and Grant can only afford an older car.

Option 2: An unsecured loan option, the Citibank Ready Credit, will let them borrow $5,000 for a fixed rate of 7.9% p.a.* for a term of 2 years. They like the fixed rate because it will let them plan for their repayments and the competitive rate on offer seals the deal for them. All they have to do is prove they have a taxable income of $35,000 per annum and they can buy the car they had in mind.

*Rates correct at time of writing

"How do I know if I'm eligible?"

If it isn't clear whether you meet the minimum eligibility criteria, for example, you may have income from investments that isn't "regular", then it's best to get in touch with a lender 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 you with 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 would include:

  • 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.


Finding the right loan in retirement is key to keeping your finances secure – make sure you compare all of your options thoroughly before submitting your application.

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20 Responses

  1. Default Gravatar
    October 8, 2017

    How I get pensioner loan?

    • Staff
      RenchOctober 8, 2017Staff

      Hi Nilkanth,

      Thanks for reaching out to us.

      To give yourself the best chance of being approved, make sure you have all of your information on hand before starting the application. This would include:

      -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 can have a look on this page and compare your options. 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.

      Cheers,
      Rench

  2. Default Gravatar
    September 19, 2017

    I am a Carer for my husband who receives Aged Pension. We have sold most of our shares but kept account open. Can one borrow ie $5000 as a personal loan to get green card for our daughter in USA or get more and buy also shares

    • Staff
      DanielleSeptember 20, 2017Staff

      Hi Julia,

      Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

      You may refer to this page for options that may suit your needs. You may review and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Go to Site” button.

      I hope this helps.

      Cheers,
      Danielle

  3. Default Gravatar
    DavidSeptember 15, 2017

    My home is valued at $600K . I have an mortgage with the CBA with an unflawed history. Although I am 71 I am employed part time permanent and net $1375 per fortnight plus pension of $200 per fortnight.
    My weekly mortgage payment is $280 per week and the remaining monies owing on this mortgage is $190K .
    I have no debt whatsoever other than the mortgage payments and would like to increase my mortgage debt by $100K to pay off my ex wife who lent me this amount to get into the house. I own my own car and have over $10K in cash. What can I do ?

    • Default Gravatar
      GruSeptember 16, 2017

      Hello David,

      Thank you for reaching out to finder for help on this.

      As a friendly reminder, please note that finder is an Australian comparison website and general information service.
      While we do not represent any company we feature on our pages, we can offer you general advice.

      In this case, you would do well to get in touch with a mortgage broker to receive proper advice on what would be best for your situation.
      You may find these pages handy to guide you:
      Mortgage Broker Finder
      Home Loans
      Home Loan Refinancing
      Comparing Home Loans

      Hope these pages help.
      If you need further assistance, please feel free to contact us again.

      Cheers,
      Gru

  4. Default Gravatar
    CeeJuly 23, 2017

    How much can I borrow and how long will it take to repay? I will use my home as collateral worth about $400,000.

    • Staff
      RenchJuly 24, 2017Staff

      Hi Cee,

      Thanks for reaching out to us.

      You may go to this page for helpful tips and make use of the loan repayment calculator. While on this page, you can calculate how much you can borrow to give you an idea.

      Then you can click on your preferred or ‘More’ button to see more details and click on the ‘Go to Site’ button to submit an online application.

      Hope this information helped.

      Cheers,
      Rench

  5. Default Gravatar
    jamesJuly 1, 2017

    We own a home $500,000 value no mortgage and want to borrow $175,000 for a holiday home. Old age pensioners total income $70,000 a year Can afford $35,000 deposit.

    • Staff
      LiezlJuly 1, 2017Staff

      Hi James,

      Thanks for reaching out. Just to confirm, you have reached finder.com.au -a comparison and information service, not actually a lender.

      Listed on this page are lenders who might offer you a basic home loan provided that you meet the eligibility and income requirements. You may click the “Got to Site” or “More Info” links to get more details about the loan.

      Before applying for a loan, you may want to go through our guide on how to get a home loan if you’re a pensioner. Better still, speak to a mortgage broker who can help you find a suitable lender.

      I hope this has helped.

      Best regards,
      Liezl

  6. Default Gravatar
    JamesApril 28, 2017

    Hi my bank commonwealth nsw told me today that if I wanted to go ahead with a personal loan application they would only consider my australian retirement pension and that no longer consider any pension foreign type of pension and that is because it as not been earned in australia or taxed in australia can you tell me is this some new type of law if so I must say never heard of anything so stupid.

    • Staff
      HaroldMay 1, 2017Staff

      Hi James,

      Thank you for your inquiry.

      Our company finder.com.au is a financial comparison website and general information service designed to help consumers to make a better decision. Please note we do not represent any company we feature on our pages.

      Please note every bank has their own list of requirements and eligibility criteria. If you did not meet all the requirements set by CBA for their personal loan. There are other providers where you can review the eligibility requirements and inquire directly to discuss about the options available for you.

      Cheers,
      Harold

  7. Default Gravatar
    davidFebruary 17, 2017

    as a 68 year old person on the pension i require a 5000 loan to purchase a vehicle
    iam a home owner
    is this possible?

    • Staff
      MayFebruary 17, 2017Staff

      Hi David,

      Thank you for your question and for contacting finder.com.au – we are a financial comparison website and general information service designed to help consumers make better decisions. Please note that we are not affiliated with any company we feature on our site.

      If you wish to get a loan, you may review the criteria and get in touch with lender featured on this page to discuss your options and eligibility. Please also make sure that you’ve read the relevant T&Cs or PDS of the loan products before acting on the advice and consider whether the product is right for you. 

      Hope this helps.

      Cheers,
      May

  8. Default Gravatar
    NicoleAugust 11, 2016

    I receive a Disability pension, i’m looking for help finding finance as my old car broke down & urgently needing another. I’m searching for someone who can help me. Im not asking for a substantial amount, only enough to get me from A to B & back again. Thank u for your time.

    • Staff
      ElizabethAugust 16, 2016Staff

      Hi Nicole,

      You can find a list of lenders that consider pension recipients on this page. Make sure you consider the eligibility criteria before you submit your application.

      Hope this helps,

      Elizabeth

  9. Default Gravatar
    lindaAugust 4, 2016

    i make 13,000 yearly of pension money,how can i get a loan of 6 to 7000,i have a emergency..

    • Staff
      MayAugust 5, 2016Staff

      Hi Linda,

      Thanks for your question.

      You can discuss your loan options with a lender featured on this page. Before you submit an application, please review the criteria and requirements.

      I hope this helps.

      Cheers,
      May

  10. Default Gravatar
    AnthonyMay 26, 2016

    HI.
    My wife and I have just sold our house and will have $210,000 in bank.We are looking to buy another house for about $220,000 we have very little left in super and no savings.I am 64 years old my wife is 61.I am on a disability pension and my wife will work for newstart with a view to get a job.I am about 10000 short of paying cash for a house.I am looking for someone to lend us $10,000 to make up the short fall.Tat is my situation.Many Thanks Anthony.

    • Staff
      ElizabethMay 31, 2016Staff

      Hi Anthony,

      Thanks for your question.

      I’m unable to recommend a specific lender to you, but as outlined in the guide below you have a few options available to you. If you have a look at the table above and get in touch with the lenders directly to explain your situation and discuss your eligibility (before submitting a formal application) that will give you your best chance at finding a suitable loan. You may want to start with your current bank if you have a good relationship with them , and if that’s not an option just ensure you have sufficient evidence ready to prove your assets and financial circumstances.

      I hope this information and the guide above will help,

      Elizabeth

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