Loans for unemployed applicants
Compare loans that are available to people who are unemployed and learn about the income requirements.
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Are you struggling financially?
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
⚠️ 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.
Can you get a loan if you're unemployed?
An unemployed person can apply for a loan but will still need to earn an eligible form of income or have suitable income-earning assets to repay the loan. Acceptable forms of income may include Centrelink payments, self-employed earnings or regular deposits in an account from shares or something similar. However, only some lenders will consider unemployed applicants for a loan and you'll still need to meet the eligibility criteria to receive approval. Applicants may be required to provide bank statements and financial documents to verify whether or not they can repay the loan.
What eligibility requirements must be met for an unemployed loan?
The specific eligibility criteria will vary between loans, but lenders will typically consider the following when someone lodges an application:
- Ability to repay the loan. When reviewing applicants, lenders will consider whether or not applicants can afford to manage repayments. If an unemployed applicant is looking to borrow a small amount and their income and expenses prove that they can easily manage the ongoing repayments, they may be eligible. However, if they're looking to borrow a large amount of money that will be difficult to repay considering their current situation, they're less likely to be approved.
- Financial situation and credit history. Lenders consider credit history, credit score and financial situation when assessing an application. For example, people who are repaying other short term loans, currently in bankruptcy or under a Part 9 Debt Agreement may not be approved. Make sure to check the specific lender's eligibility criteria before applying.
- Eligible income. Some lenders will approve applicants who are receiving eligible government payments. For example, people receiving certain Centrelink allowances, such as a pension or parenting payments, may be able to include this as a percentage of their eligible income. For example, you may only be approved if no more than 50% of your income comes from Centrelink payments. Some payments, such as Newstart or Disability Support Pension (DSP), may not be accepted by some lenders. Again, check the lender's eligibility criteria before applying.
- Assets. If an applicant owns assets such as a vehicle or has equity in a property, the application may have a greater chance of being approved. This is because the lender may use this as security for the loan.
Which lenders consider unemployed applicants?
There are a number of different loan options for those who are unemployed, between jobs or receiving government benefits.
|Cash Converters||$100 to $4,600|
|Ferratum||$500 to $1,900|
|OK Money||$200 to $5,000|
|Wallet Wizard||$100 to $5,000|
Are there any alternative options to unemployed loans?
People who are unemployed and receiving other forms of income can consider other forms of finance beyond short term loans. Examples of other options include:
- No Interest Loans scheme (NILs). Provided by Good Shepherd Microfinance, the No Interest Loans Scheme (NILs) offers credit to individuals and families who have lower incomes and who hold a Health Care Card or Pension Card. Customers can apply for loans between $300 and $1,500 to use for essential goods and services including household items, some medical and dental services and educational resources. Applicants must meet income requirements, demonstrate the ability to repay the loan and have resided at their current address for more than three months.
- StepUP Loan. Good Shepherd Microfinance and NAB offer StepUp Loans that vary between $800 and $3,000 for a low, fixed interest rate. The loan can be repaid over a set term of up to three years. To be eligible, customers must undergo a credit check and hold a current Health Care Card, Pension Card or receive Family Tax Benefit Part A. Applicants must also have resided at their current address for more than three months.
- Joint applications, guarantors and cosigners. Unemployed applicants can consider applying with another person, such as a partner, relative or friend, to boost their eligibility. Some lenders accept joint applications and brands such as Buddy Money encourage people to apply with a guarantor. The guarantor or cosigner shares the responsibility of repaying the loan.
If an applicant can meet the eligibility criteria and demonstrate their ability to make repayments, they may be approved for a loan. However, it's important to consider your financial situation, compare options and consider the lending criteria before applying.
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