Loans For People On Centrelink - Cash Loans For Unemployed People

Loans For People On Centrelink – Cash Loans For Unemployed People

loans for unemployed

Guide to Cash Loans For People On Centrelink

If you’re unemployed and on Centrelink your options for a loan can be very slim. Most banks and mainstream financial institutions don’t want to know you, and those lenders that will talk to you are probably going to charge you interest rates that are through the roof, which will land you in some serious long term debt. Before you jump into any loan agreements you should take some time to understand your options and think about why you actually need the money, and ensure that you can pay it back without too much trouble.

Being unemployed and on Centrelink benefits already brings about stress and can very deflating for a person’s self esteem. Many people will try to hide this from their friends and family and will look for ways to obtain quick cash to fund whatever financial shortfalls they may have.

loans for unemployed

Cash Loans For People On Centrelink

It’s not only people that are temporarily out of the workforce that find themselves in this position either. There are also a host of people on a long term pension or even single mothers that are currently getting financial assistance from Centrelink. Whatever the reason is that people may find themselves searching for easy loans that are specifically for people on Centrelink, avoiding finding yourself in a potential long term financial struggle to pay back your debt should be your highest priority.

With this in mind let’s take a look at some examples of reasons that people should and should not obtain finance for.

What You Should a Centrelink Loan Be Used For?

loans for people on centrelink

Car Loans For People On Cerntrelink


There are a number reasons that cash loans for people without jobs exist and they are generally to help people pay for one off items or repairs such as the following:

  • To buy a second hand car
  • To buy a new fridge or freezer
  • To buy a new washing machine
  • To pay for unexpected car repairs
  • To purchase medical equipment such as wheel chairs

These expenses are often unexpected and financial assistance for unemployed people are best suited to help to finance these types of items. Many people need to have access to a car in their day to day life and as a result car loans for people with bad credit have been made accessible.



If you find yourself struggling to meet your day to day cash flow requirements you should not use unemployed loans to meet your cash shortfall and pay your utility bills or your rent. Borrowing money to pay for your everyday expenses will dig you into a hole that will forever get deeper and deeper.

This is even more important if you choose the wrong type of cash loans for unemployed people currently on Centrelink because you may very well end up with a high interest rate that will make it very hard to fully repay the loan.

Avoid Rent to Buy

Rent to buy retail offers may be a good idea for some people but if you are unemployed and on Centrelink you really need to watch you cash and that means avoiding anything with a high interest rate. Rent to buy deals always work out in favour of the retailer and this type of financing method is actually used to target people in your position and take advantage of them. A simple appliance that may have cost you $200 upfront will cost you much more if you sign up to a long term rent to buy arrangement. If you do find yourself looking at a rent to buy deal, take a look at the fine print and actually calculate what the total cost will be after you have made your final payment.

Loan Providers For The Unemployed

Now that we’ve covered many of the negative aspects of borrowing money when you’re unemployed and have very little available cash flow to pay it back, let’s look at where you can actually borrow some money and not be taken advantage of.

No Interest Loans Scheme NILS

The No Interest Loans Scheme (NILS) offered by Good Shepherd Microfinance is the best option for people on Centrelink benefits looking for a short term loan. This is a community bases lending scheme that currently has over 600 supported locations throughout Australia.

To qualify for this loan all you need is a Centrelink healthcare card or pension card and if you don’t actually have one of these, as long as you meet the requirements to obtain one of these cards you will still be eligible for the NILS product.

As the name suggests this loan charges no interest and there are also no set up fees and as long as you demonstrate the ability to repay the loan over 12 to 18 months you stand a very good chance of being awarded finance.

Here is the criteria you need to meet to apply for a NILS:

  • You must have lived at your current address for at least 3 months.
  • You must demonstrate willingness and the ability to repay the loan.
  • You must fulfil the Centrelink healthcare of pension card requirements.

That’s it. There are no hidden charges or fees; this financial product is genuinely there to help unemployed people on Centrelink obtain finance to get through those tough times.



The StepUP loan is another product offered by Good Sheppard Microfinance; however this loan does come with some interest. The interest rate is very low and there are no set up fees associated with this loan.

To be eligible for the StepUP loan you must meet the following criteria:

  • Centrelink Concession Card or receiving Family Tax Benefit Part A
  • You must have lived at your current address for at least 3 months.

The StepUP loan is targeted towards helping people that are looking for an unsecured loan amount of between $800 and $3000, and are prepared to pay back the loan over a 3 year period.


Good Money

This company is a not for profit organisation that offers both low and no interest finance options for people with low incomes that may have otherwise been excluded by the mainstream banks and lenders.

In addition to providing finance loans for unemployed people Good Money also provides education and support to their members. They offer a unique buying service that helps people to find the lowest prices on goods to help them reduce any financial outlay that consumers need to obtain finance for in the first place.


centrelink loans

Be Careful With Cash Loans For Unemployed People!

There are of course a whole host of other small lenders out there that are willing to offer short term loans of typically under $2000 to unemployed people with bad credit, but it would be very wise to tread carefully when dealing with these smaller companies as the loans they may provide you with will very often contain high interest rates.

You should always use financed capital wisely and try to keep in mind that the best option is to always for anything you can upfront before seeking a loan.

About the author

Jonathan Heart

Hello, I'm Jonathan Heart. I'm an accountant by day and a financial enthusiasts / investor by night who invests primarily in Australian real estate and blue chip shares. I live in Sydney and I thoroughly enjoy spending my spare time reading and writing about all things related to finance in Australia.

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