Unemployed Loans

Loans for the Unemployed

Worried you won't meet the employment requirements to borrow? Find out about unemployed loans.

If you're not employed in the traditional sense and are in need of finance, you may be wondering whether any lender will consider you for a loan. This guide will take you through your options for borrowing while you're unemployed, what you need to be aware of, and how you can apply. You can also see the ins and outs of eligibility criteria for lenders that offer these kinds of loans. Jump forward to lenders that may lend you money >>

Can you get a loan if you're unemployed?

The short answer is yes, but you will need to be earning some form of income or have suitable income-earning assets to repay the loan. This may involve you receiving some kind of Centrelink payments, being self-employed, or you receiving a regular deposit into your account from shares or something similar. And only some lenders will consider you for a loan.

Often, lenders will require access to your banking history and financial documents in order to verify that you will be able to repay your loan.

Important things you'll need to consider before borrowing

  • You need to be able to repay the loan.
    The main thing lenders will consider when you apply is whether you have the means to manage your repayments. If you are only looking to borrow a small amount and your income and expenses show you can easily manage the ongoing repayments, then you may be eligible. If you are looking at borrowing a large amount of money that will make it hard for you to manage day-to-day, then the lender cannot approve you.
  • Other requirements will need to be met.
    You may find it hard to be approved if you have any other short-term loan contracts open that you're currently repaying, and many lenders will not consider you for a loan if you're currently bankrupt or under a Part 9 Debt Agreement. You'll need to check the other eligibility requirements set by the lender before you apply. Just because they have flexible criteria when it comes to your employment does not mean they will be flexible about everything.
  • Do you receive Centrelink payments?
    This is often what allows lenders to consider you for a loan when you aren't currently employed. If you receive certain Centrelink allowances, such as a pension or parenting payments, you may be able to use these as income (but only a certain percentage of your income). Some payments, such as Newstart or Disability Support Pension (DSP), may not be accepted by some lenders, so be sure to check before you apply.

Find out about borrowing when you receive Centrelink

Ferratum Cash Loans

Ferratum Cash Loans

  • No credit checks
  • Borrow up to $1,900
  • Bad credit borrowers OK
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100% confidential application

Ferratum Cash Loans

Ferratum offers no credit check short term loans with a fast and easy online application. Apply today to get approved.

  • Loan amount: $1,900
  • Loan term: Up to 6 mths
  • Turnaround time: Same Day if approved
  • Fees: 20% of borrowed amount + 4% of borrowed amount each month
  • Bad credit borrowers OK
  • Quick and easy Approval
Go to site

Rates last updated August 22nd, 2017
Name Product Max. Loan Amount Term of Loan Turnaround Time Costs Product Description
Ferratum Cash Loans
$1,900
Up to 6 mths
Same Day if approved
20% of borrowed amount + 4% of borrowed amount each month
A small loan from Ferratum lets you borrow up to $1,900 without a credit check

Compare up to 4 providers

What eligibility requirements will I need to meet for an unemployed loan?

The requirements differ depends on which lender you're looking at applying with and how much you're looking to borrow. You'll need to check the specific criteria before you submit an application, but any of the following might apply:

  • Earning a specific income. While you may not need to be employed, you still may need to earn a regular income to apply. This is a common criterion you'll find with personal loans, so if you aren't employed or are employed casually but earn a sufficient income, you still may be eligible to apply.
  • Receiving Centrelink payments. Some lenders will accept Centrelink payments as a form of income, but, as outlined above, they will have guidelines surrounding this. The requirements may be that no more than 50% of your income comes from Centrelink payments or that you do not receive Newstart Allowance or DSP. Check the specifics before applying.
  • Your credit rating. With flexible employment criteria often comes flexible credit criteria. That is, if a lender is willing to look beyond your not being in a job, they are often able to look beyond negative marks on your credit file. Keep in mind, though, that this flexibility has limits. For instance, you may be able to have a default or two and still be accepted, but many lenders will not consider you if you are currently bankrupt.
  • Your assets. If you own a car or a boat outright or have some equity in a property, your application may have a greater chance of being approved. This is because the lender may use this as security for the loan.

Where can I get a loan if I'm unemployed?

There is a number of different loan options for those who are unemployed, between jobs or receiving benefits.

LenderLoan amountEligibility
Cash Converters$50 to $2,000
  • Over 18
  • Earn at least $300 per week
  • Reside in Australia
Ferratum$100 to $1,900
  • Over 18
  • Earn a regular income
  • Australian citizen or permanent resident
OK Money$200 to $5,000
  • Over 18
  • Earn a regular income
  • Australian citizen or permanent resident
  • Apply in-store
Wallet Wizard$100 to $5,000
  • Over 18
  • Are able to afford the loan

Sarah needs a loan

Sarah has been out of work for three months after completing her degree and currently receives Centrelink payments. She can get a job as a sales rep, trouble is, she needs a car in order for them to offer her the role. She has found a cheap car to purchase from a friend – $1,500 – all she needs to do is secure a loan.

She'll be able to comfortably repay the full amount using her Centrelink payments, and when she first gets paid from her new job the loan repayments will be even easier to manage. She has credit card debt and so has been refused a loan by StepUP and The No Interest Loans Scheme can't help her with a car purchase. She considered a Centrelink Cash Advance, but Centrelink can't get it to her in time to secure the role.

She compares her small, short-term loan options and sees that there are lenders who will consider her Centrelink payments as income. After comparing what's available and double-checking the eligibility criteria, she submits an online application and is approved for the loan amount. Her repayments are structured around her Centrelink payments, and, after purchasing the car, she is offered the role.

Are there any alternative loan options?

There's more than just short-term lenders to consider if you're in need of finance while you're unemployed. It's important to consider all of your options and find the best one for your needs and situation.

  • 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. Loans of between $300 and $1,200 are provided for no fees, no charges and no interest to help people pay for household items, medical and dental services and even educational essentials. Applicants need to show a strong willingness to repay the loan and need to have resided at their current address for over three months.
  • StepUP Loan. Another option offered by Good Shepperd Microfinance, this time partnering with NAB, this loan is available for between $800 and $3,000 for a very low rate. To be eligible, you need to hold a current Centrelink Concession Card or receive Family Tax Benefit Part A. As with NILS, you need to have been at your current address for more than three months. This loan can be used for household items and medical or dental expenses, as well as to purchase cars, computers or to pay for repairs on your house or car.
  • Joint applications, guarantors and co-signors. If you're unemployed and in need of a loan, you can consider applying with another person – a partner, relative or friend – in order to boost your eligibility. Many lenders offer the option for joint applications, and some brands such as Buddy Money encourage you to apply with a guarantor in order for you to be able to access finance. So, if you don't meet the eligibility criteria, find out if you can apply with someone who does. Remember that this is a large responsibility the guarantor or co-signer is taking on as they are sharing the responsibility for you repaying the loan.

So, you don't reach the end of the financing road when you are unemployed. If you are able to manage your repayments there are lenders who will consider you and loan options available to you. Remember to compare all options that are open to you to secure the best one for your needs.

Elizabeth Barry

Elizabeth is an editor for finder.com.au specialising in personal finance and fintech. She enjoys reading PDSs so you don’t have to.

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287 Responses

  1. Default Gravatar
    egglesAugust 5, 2017

    last year 2016 I had a credit score of 944 out of 1200 with Veda,820 out of 1000 with Experian and Dunn&Bradstreet,my Centrelink income was $26,414 p/a,I was directed by all three to approach Society One for a $5,000 car loan,although my income was over a $1,000 above the minimum they still found a way of rejecting my application,firstly because I had no other income from employment and when I got over the other employment I actually was accepted for consideration of the $5,000 car loan,as it was an online application I was directed to finish stage two of the application which was only a complete copy of the first page of the application,when I had finished the total application it was with in two hours I received the answer which was a refusal,I rang them and asked why I was refused and was told that according to the Henderson Poverty Line Index I only had approximately $19 a fortnight left to repay the loan,when I asked what the Henderson Poverty was I received the explanation that everybody on the pension and disability pension was placed in one group which included people that drank alcohol, smoked and visited clubs and other types of gambling it was worked out that I only had that $19 per f/t left from my pension,I do not smoke,I do not drink alcohol and visited the club on the occasions a Christmas in July Party and the actual Christmas party of the Housing complex where I lived,after everything was paid out of my pension including my $20 prepay of my gas and electricity I had a bit over $540 left from my pension with only food to buy,I also had a complete clean sheet with the three credit reporting agencies , I also tried four banks and online lenders and was declined by everyone I made application to,one of the online lenders actually emailed me and apologized that they could not supply me with a car loan but also offered me a very low interest home mortgage,I am not being nasty but all that is written about the availability of pension loans that are supposed to be available,I was put on the disability pension by the government doctors and that was in 1991 when I was 49 yrs old and also had the 2 year examination and the 5 year examination with different gov doctors each time,I finally got my loan last November and that was a Step Up car loan of $3,000 from the National Bank,maybe you should be informing people that are on a pension the information I have listed here to go to the NAB and inquire about this Step U loan,cheers

    • Staff
      ArnoldAugust 5, 2017Staff

      Hi Eggles,

      Thanks for your inquiry.

      We thank you for sharing your experience with us. I’m sure some our users can relate to what you have been through. Thank you also for your advice, we appreciate them.

      Hope this information helped.

      Cheers,
      Arnold

  2. Default Gravatar
    LizJuly 16, 2017

    I was in a car accident 7.5 yrs ago and since then I have been paid monthly by my private income protection policy. I was sent to numerous specialists in the first few years by the insurance company and each time they received the same answer, I will never work again. Now, my GP just has to complete a simple form every three months and I sign to say I haven’t worked. My annual income from them is approx $92000 and this is payable until age 65, I am 47 in September. I would like a personal loan for $18,000, for 3 years, for debt consolidation. I have very good credit history. However I am struggling to find a company that will accept my income protection payments, which to me is more secure than most jobs at the moment. Are they any companies that consider people in my situation? Or is there another alternative? We are presently renting so do not have any equity. Thank you.

    • Staff
      JonathanJuly 19, 2017Staff

      Hello Liz,

      Thank you for sending your inquiry. :)

      You may consider options for debt consolidation loans, low doc personal loans and secured personal loans.

      Please take note that their eligibility requirements vary per lender, so it is important to review them before applying. You can also check their corresponding Product Disclosure Statements located on the lender’s webpage.

      Hope this helps.

      Cheers,
      Jonathan

  3. Default Gravatar
    danielJuly 14, 2017

    I’m looking to obtain a loan but I’m unemployed and have a bad credit.

    • Staff
      RenchJuly 14, 2017Staff

      Hi Daniel,

      Thanks for reaching out to us.

      You may also get helpful info and compare your options from this page. Please click on the name of your preferred loan to see more details and it’s eligibility criteria. Then you may click on the green ‘Go to Site’ button to submit an online application.

      Hope this helps.

      Cheers,
      Rench

  4. Default Gravatar
    ubJuly 2, 2017

    I am in Ghana, can l get a loan from you?

    • Staff
      RenchJuly 2, 2017Staff

      Hi Ub,

      Thanks for your inquiry.

      Unfortunately, we don’t feature loans in Ghana, West Africa. You may consult loan providers which are in your location.

      Best regards,
      Rench

  5. Default Gravatar
    EstherJune 9, 2017

    I need a loan better than title loan about 3300 if possible I get ssi husband does umpiring all yeAr round

    • Staff
      MayJune 9, 2017Staff

      Hi Esther,

      Thank you for your inquiry.

      I’m afraid that the lenders listed above only offer loans to people in Australia. Nevertheless, if you like to compare your loan options, please review the criteria and contact a lender listed on this page to discuss your options/eligibility.

      Hope this helps.

      Cheers,
      May

  6. Default Gravatar
    MsJune 4, 2017

    I’m a qualified professional but I’m unemployed on Centrelink Newstart at the moment. Where can I go to borrow at least $2000? I have a car to use as collateral. I have a tax refund due to me next month in early July 2017 and I would like to use some of the refund to repay the loan. Thank you.

    • Staff
      JonathanJune 4, 2017Staff

      Hi Ms. Vincent!

      Thanks for your inquiry.

      You can check out our list of lenders here. In order to proceed, click the hyperlink name of your chosen lender to redirect you to their individual page. From there, you may either click “More” or “Go to Site” green button to proceed with your application.

      Hope this helps.

      Cheers,
      Jonathan

  7. Default Gravatar
    MazeliaMay 28, 2017

    Can your web site help me get a loan for the unemployed ? There is a wedding coming up next week and I need a little help getting ready. Please help !

    • Staff
      AnndyMay 28, 2017Staff

      Hi Mazelia,

      Thanks for reaching out.

      You may check our table above for lenders that may consider you for a loan while unemployed. Kindly note that other eligibility criteria apply.

      Before you submit your loan application, please do read the related terms and conditions of the loan you are interested in.

      Cheers,
      Anndy

  8. Default Gravatar
    PauMay 26, 2017

    Hi Im from Fiji Is it possible that I can get a loan.

    • Staff
      JonathanMay 29, 2017Staff

      Hi Pau,

      Thanks for the comment.

      I’m afraid that this loan is only available to people who are currently residing in Australia. The same is true for all other lenders that are featured on our pages. You may want to get in contact with a bank or lender in Fiji.

      Hope this clarifies.

      Regards,
      Jonathan

  9. Default Gravatar
    RaeleneMay 1, 2017

    I need bank statements.

    • Staff
      HaroldMay 2, 2017Staff

      Hi Raelene,

      Thank you for your inquiry.

      In general, you can request for a bank statement from your depository bank where you have an account.

      I hope this information has helped.

      Cheers,
      Harold

  10. Default Gravatar
    KeiloApril 28, 2017

    I’m unemployed and need money for my rent can I get approved?

    • Staff
      HaroldApril 28, 2017Staff

      Hi Keilo,

      Thank you for your inquiry.

      The requirements differ depends on who you’re looking at applying with and how much you’re looking to borrow. You’ll need to check the specific criteria before you submit an application. You can check your options through this section.

      I hope this information has helped.

      Cheers,
      Harold

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