Can You Get a Loan While on Centrelink? Your Guide to Borrowing Options and Risks
Chloe Jones
Published on 20th April 2023

Key Takeaways

  • Receiving Centrelink does not automatically disqualify you from loans, though your income source and amount can affect eligibility and borrowing limits.

  • Loan options available include micro loans, instant cash loans, payday loans, and personal loans, each with different limits, repayment terms, and risks.

  • It’s crucial to compare lenders and understand the risks, as borrowing while on Centrelink may lead to additional financial strain if repayments become unmanageable.


As of June 2024, approximately 8.5 million Australians were receiving Centrelink benefits, underscoring the critical role this support system plays in the lives of many. While Centrelink provides essential financial assistance, it's equally important for recipients to explore additional avenues to enhance their financial well-being.

For many Australians, Centrelink provides vital financial support during challenging times — whether it's due to unemployment, disability, or other circumstances. However, even with this assistance, unexpected expenses can still arise. From car repairs to urgent bills, you might find yourself needing extra cash.

So, what are your borrowing options when you're on Centrelink? While loans may be available, it’s important to understand the eligibility criteria, risks, and alternative solutions to ensure you make informed financial decisions.

Is It Possible to Get a Loan While Receiving Centrelink Payments?

Yes — some lenders offer loans to Centrelink recipients. However, your eligibility may be affected by:

  • Income source and stability: Lenders assess whether your Centrelink payments can reasonably cover loan repayments.

  • Income ratio: Typically, if Centrelink payments make up more than 50% of your total income, your chances of approval may decrease.

  • Credit history and expenses: Like any loan application, lenders will review your credit record and overall ability to repay.

While loans may be available, it’s important to approach them cautiously. Borrowing while on a limited income can increase your financial vulnerability.

What are the available loans for Centrelink recipients?

While not every lender will approve applicants receiving Centrelink, some offer specific products designed to meet the needs of lower-income Australians.

Here’s a quick comparison of your options:

Loan Type

Typical Amount

Centrelink Eligibility

Risks to Consider

Micro Loans

$100–$5,000

Community lenders may approve

Limited amounts, specific use

Instant Cash Loans

$300–$5,000

Some online lenders may approve

High fees, short repayment periods

Payday Loans

Up to $2,000

Some lenders consider Centrelink

High cost, risk of debt cycle

Personal Loans

$2,000–$50,000

Depends on lender’s policy

Harder to qualify, long-term debt

Below, we break down each loan type in more detail to help you decide which — if any — may suit your situation.

Micro Loans for Centrelink Customers

Microloans also known as microcredit or small loans are small-scale loans that are typically granted to individuals, entrepreneurs, or small businesses who are not able to access traditional banking services or loans due to various reasons such as a low form of income, lack of collateral, or poor credit history.

You might not have many loan choices available to you if you get benefits from Centrelink as the majority of banks and conventional lenders have stringent requirements for lending to people with low income or no jobs. You can, however, still obtain small loans while receiving Centrelink payments.

Centrelink customers can get microloans from nonprofits, community organisations, and specialised lenders. Even with a poor credit score and credit history, you can borrow anywhere from $100 to $5,000 depending on the lender.

Instant Cash Loans for Centrelink Customers

Instant cash loans are short-term loans that are designed to provide fast access to cash to cover unexpected expenses or emergencies. These loans are typically for small amounts, ranging from a few hundred to a few thousand dollars, and are usually provided by banks, credit unions, or online lenders.

If you are a Centrelink customer, you may be able to acquire a quick cash loan from some lenders if you meet certain criteria. Depending on the lender, you may be able to borrow up to $5,000 for instant cash loans.

Payday Loans for Centrelink Customers

Payday loans are also short-term loans that are used to cover unexpected expenses or emergencies. These loans are usually for small amounts and are designed to be repaid on the borrower’s next payday.

Payday loans typically have higher interest rates and fees compared to other types of loans due to the short-term nature and risk associated with lending money to people who need cash quickly.

Payday loans are often used by individuals who are in a difficult financial situation, such as those with a bad credit history or who have low incomes. However, they can also be risky and can lead to a cycle of debt if not managed properly.

There are several lenders who consider applicants that are receiving Centrelink benefits, but the approval process for payday loans will depend on the lender’s criteria and the applicant’s ability to repay the loan. Additionally, payday loans are unsecured loans, which means that borrowers are not required to provide collateral such as property or assets to secure the loan. Instead, lenders typically base their lending decisions on a borrower’s source of income, expenses, and credit history.

A payday loan, also called a small-amount loan, lets you borrow up to $2,000. You have between 16 days and one year to pay it back.

Personal Loans for Centrelink Customers

Personal loans are a type of loan offered by banks, credit unions, and other financial institutions that provide borrowers with a lump sum of money to be used for a variety of purposes. Personal loans can be secured or unsecured and typically have a fixed interest rate, monthly repayment schedule, and a set loan term.

Secured personal loans require collateral, such as a car or house, to be used as security against the loan. If the borrower fails to repay the loan, the lender can seize the collateral to recoup the money.

Centrelink customers may be eligible for personal loans, but it will depend on their circumstances and the lender’s criteria. Some lenders may accept Centrelink payments as income, but others may not.

Generally, personal loans can range from a few thousand dollars up to $50,000. It’s important to carefully consider how much you need to borrow and your ability to repay the loan before applying especially if Centrelink benefits are the only source of funds you currently have.

Lender Options for Centrelink Customers

If you are receiving Centrelink payments in Australia and are in need of a loan, there are some online lenders that may be able to provide options. However, it’s important to note that borrowing money should be considered carefully, as it can lead to additional debt and financial strain.

Here are some online lender options for Centrelink customers in Australia:

  1. Cash Converters: Cash Converters offers short-term loans for Centrelink customers in Australia. These loans can be for amounts between $100 and $2,000 and can be repaid over a period of 16 days to 12 months.

  2. Nimble: Nimble offers small loans to Centrelink customers in Australia. These loans can be for amounts between $300 and $5,000 and can be repaid over a period of 62 days to 22 months.

  3. Jacaranda Finance: Jacaranda Finance offers personal loans for Centrelink customers in Australia. These loans can be for amounts between $300 and $10,000 and can be repaid over a period of 12 to 24 months.

  4. Cash Train: Cash Train offers short-term loans for Centrelink customers in Australia. These loans can be for amounts between $200 and $2,000 and can be repaid over a period of 10 weeks to 12 months.

Remember that each lender will have different eligibility requirements and interest rates, so it’s ideal to do your research and compare available loan options before making a decision. Also carefully consider your existing expenses to ensure that you can afford to repay the loan and that you understand the terms and conditions of the agreement.

About the author
Chloe Jones Personal Finance Writer
Chloe is a seasoned financial services professional with over 15 years of experience in banking, financial strategy, and risk management. She shares industry insights as a Financial Services Consultant and writer.
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