Can I Use My Super As Security For A Loan?

Can I use my super as security for a loan if I don’t have another eligible asset? That’s the big question. Read on as Monzi explores your secured loan options and what may be available to you. Access cash amounts from $300 to $10,000 through Monzi today.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

Can I use my super as security for a loan: Monzi explains

Unfortunately, the short answer is no.

Superannuation is a protected asset. That means in almost all situations, no matter how much you owe, creditors will be unable to access your super. As a result, you will be unable to secure a loan using your super.

Luckily, though, there may be other options. Let’s dive into Monzi’s guide to your secured loan options now.

Monzi: who are we?

So, you’re asking can I use my super as security for a loan and you’ve found your way to Monzi. Well, it’s probably time we introduce ourselves.

At Monzi, we’re expert lender-finders. In short, Aussies just like you apply with us every day. From there, we attempt to pair them with one of the many great lenders within our network. In other words, we can take the hassle out of finding a lender.

Best of all, we work with lenders offering personal loans online from $300 to $10,000. Moreover, with a range of flexible repayment terms available, there may be a fast cash amount that suits your needs. Just use the loan slider at the top of the page to begin your application now.

As a guide, loan products that Monzi’s lenders may offer include:

Loans AustraliaAmount ($) AUDApproved
Cash loans for bad credit500
Unsecured loan no credit check1,500
Secured loan bad credit2,500

Note, however, that the table above is for demonstrative purposes only and may not reflect the loan that you are offered.

Secured loans explained and explored

While the answer to the question “can I use my super as security for a loan” is no. That doesn’t mean that you’re out of options. In short, one alternative that you could turn to is a secured loan.

With this, rather than securing your loan with your super, you could use a vehicle instead. For instance, if you own a car, boat, caravan or motorbike, then this could be a realistic option for you. In addition to this, some lenders may accept other assets too, such as jewellery or even art!

With this, as part of your application, you’ll need to provide the details of the asset you will be providing as security. However, keep in mind that if you default on a guaranteed personal loan, then your lender can potentially take steps to repossess your asset, to recover their losses. Although this is usually a last resort.

Finally, best of all, through Monzi’s lender-finder service, we may be able to pair you with an Australian credit provider offering secured loans up to $10,000. Apply today.

Can I use my super as security for a loan: what about using my car?

A loan against your car is the most common form of secured finance. After all, more of us own a car than a boat or motorbike.

To be eligible, your car will typically need to be paid off and not be over a certain age. Moreover, it must be registered in your name and at least match the value that you’re looking to borrow.

From there, the process of how these loans work is the same as described above. You’ll need to attach the vehicle to your loan as part of your agreement before your cash loan is transferred. From there, it will only become a factor if you fail to make your repayments and your lender looks to begin the repossession process.

Can I get secured personal loans with bad credit history?


While in the past bad credit may have made your application untouchable, the good news is that this is no longer the case. While lenders will usually conduct a credit check, that won’t be all they assess. In other words, your budget (e.g. income vs expenses) may be just as important.

If you’re in a stable financial position and have your budget under control, then lenders may be willing to offer you a loan despite your poor credit. However, approval is not certain. Moreover, not all lenders will offer loans to bad credit borrowers.

How long do I have to repay a secured loan?

At Monzi, we work with lenders who offer secured loans from $2,100 to $10,000. With this, you’ll often have the choice of a repayment term ranging from 13 to 24 months. So, you’ll need to decide what is right for you.

As a guide, aim to find the right balance between efficiency and affordability. A term that’s too short may compromise your budget, while a term that’s too long may be unnecessary. As a result, it’s up to you to determine what is right for your budget.

Finally, making your repayments couldn’t be easier. Typically, lenders will establish a direct debit from your account, meaning you won’t have to lift a finger. Just make sure you have enough funds in your account on the relevant dates.

Secured loans bad credit on Centrelink: can Monzi help?

Yes, potentially.

If Centrelink payments account for a portion or all of your income, the good news is that you will not necessarily be ineligible for a loan. This is because Monzi works with many lenders who are understanding of different circumstances. As a result, some lenders may accept benefits payments as income.

However, this won’t always be the case. While some lenders may consider offering loans to individuals receiving benefits, others may not. Moreover, certain payment types may be viewed differently, too.

In addition to this, if you are currently receiving Centrelink and experiencing financial hardship, note that taking out a quick cash loan may not be right for you. These loans may be expensive and there could be more appropriate financial support available from other entities (e.g. No Interest Loan Scheme).

Can I use my super as security for a loan: consider an unsecured loan instead!

Not all loans must be guaranteed. So, if you’re after a small loan to cover a minor expense here or there, then you may consider an unsecured loan.

At Monzi, we work with plenty of lenders who specialise in offering small loans. In short, you can borrow amounts ranging from $300 to $2,000, which may be repaid over just 12 months. Best of all, given that there’s no security required, they’re potentially a quick and easy loan option.

Scroll up and use Monzi’s loan slider when you’re ready to apply. Let’s go.

Secured and unsecured loans: what expenses can they cover?

The best thing about personal loans is that they can often be spent like cash. As a result, you could use them to cover almost any legitimate personal expense.

As a guide, reasons for applying with Monzi range from something as simple as car repairs to debt consolidation and even travel expenses. But that’s just scratching the surface. There are hundreds of potential reasons to apply for quick cash today.

Finally, keep in mind that you must provide your reason when applying. With this, tell the truth. If a lender finds out that you are lying about your intentions, then your application may be denied. Moreover, it can also hinder your ability to access the loans you need in the future.

Can I use my super as security for a loan with easy approval?

No, as we’ve mentioned, you cannot use your super as security on a loan. This is because super is protected from creditors. As a result, it is ineligible to be used as collateral.

In any case, if you’re after a secured loan with easy approval, Monzi cannot provide any guarantees. Having said this, secured loans are often easier to get than an unsecured loan. Intuitively, this makes sense.

As the loan is guaranteed, there is less risk for your lender. After all, if you fail to make your repayments, then they still have an avenue to recover their losses.

However, approval is not certain. While lenders may prefer to offer secured loans, they will still assess your financial situation to ensure the loan is affordable for you.

Are you eligible to apply with Monzi?

With Monzi, we make things easy and our eligibility criteria are no different. In short, we aim to help as many Aussies as possible find high-quality credit providers online. So, before you begin, just make sure that you check these four boxes:

  • Australian citizen or permanent resident.
  • At least 18 years of age.
  • Have a current mobile number and email address.
  • Possess an online bank account with at least three months of transaction history.

Once you confirm your eligibility, you’re ready to apply. There’s nothing stopping you now!

Monzi’s step-by-step guide to applying

Alright, you’re ready to apply. What now?

Well, with Monzi, it’s straightforward. All you need to do is follow these quick steps:

  1. Use Monzi’s loan slider to select your cash amount and repayment term (Note that loans up to $2,000 come with fixed 12-month terms).
  2. Complete your application by adding the relevant personal and financial details. Then, hit ‘submit’.
  3. Kick back and relax as we take over. Once we receive your application, our automated system will attempt to pair you with an available lender from our network.
  4. If we successfully pair you with a lender, then your application will be passed onto them. From there, they’ll be in touch to begin your assessment.

And that’s all there is to it!

can I use my super as security for a loan

Is a secured loan right for me?

Unfortunately, while Monzi may be able to answer questions like “can I use my super as security for a loan?”, we cannot provide financial advice that’s specific to your financial situation. As a result, to determine if taking a secured loan is a wise financial move, you must consider your circumstances.

To get the ball rolling, key questions you should ask include:

  • How much do I earn?
  • What are my current day-to-day expenses?
  • Do I have any on-going repayment obligations (e.g. outstanding loans)?
  • Are there any major, upcoming expenses?
  • How much do I need to borrow?
  • How can I cut costs to reduce my loan amount?
  • What repayment amount would fit comfortably with my budget?

How does repossession work?

Before applying for a secured loan, you must understand the possible consequences. In short, the risks relate to repossession.

When you apply for a loan over $2,000, the loan must be secured by an asset. If you fail to make your repayments, then the lender can initiate the repossession process. This involves taking possession of your asset to recover their losses.

However, there are a number of protocols apart of this. Lenders may only repossess your asset if:

  • You are behind on your repayments.
  • You have been sent a notice giving you 30 days to repay the overdue amount.
  • The 30 days pass without payment.

If you are behind on your repayments and want to avoid repossession, contact your lender. Your options may include paying off your debt, negotiating a compromise with the lender or applying for financial hardship.

For further information on repossession, visit the Moneysmart’s free and easy-to-understand break-down.

Can I use my super as security for a loan: what will lenders assess?

When it comes to loan applications, lenders want to ensure that the money you borrow is reasonable for your financial situation. That is, can you afford the repayments without compromising your current budget?

Given this, lenders will usually focus their assessments on a few key factors:

  • Your credit: as they say, past behaviour is the best indicator of future behaviour. So, if you’ve shown that you’re a reliable borrower, then lenders may be willing to work with you to offer the cash you need in your account today.
  • Your current budget: what is the current balance between your income and expenses?
  • The loan: how would the proposed loan repayments fit your budget? From this, lenders can determine if it would be affordable for you.
  • Secured or unsecured: lenders often prefer to provide secured loans. However, unsecured cash options are available too.

Note, however, that is a brief overview. Lenders may consider other factors to determine your outcome. As a result, approval is not certain.

For more information on loan assessments and responsible lending practices, visit the Australian Securities and Investments Commission website.

How do I compare secured and unsecured loans?

Loans aren’t all the same. So, before applying, it’s often a good idea to compare your options. In some cases, you could potentially access terms that are more suitable or even lower costs.

However, if you’re new to the borrowing game, you might be wondering what to compare. No need to worry. Here are a few key factors to look at:

  • The costs: loans must be repaid with interest and fees. As a guide, a lower rate and fewer fees are often what to look for.
  • The terms: some lenders may offer loans with short-term repayments. Others may provide longer-term options. Given this, ensure there is an option that suits you.
  • Who is the lender: reading reviews online is a great way to get an idea of past borrower experiences. Moreover, before applying with any lender, check their website to ensure their Credit Licence Number is listed (Monzi will only pair you with a licenced credit provider).

Can I use my super as security for a loan? Monzi’s quick Super FAQ

While we’ve focused on using your super as security and secured loans in general, it’s worth taking a lot at some of the most common questions that people ask regarding their super.

So, to help you out, here’s a quick and easy guide. However, keep in mind that Monzi cannot offer financial advice. Moreover, you may need to do research to determine how the following questions apply to your circumstances. In any case, let’s dive in.

Can I borrow money from my super?

Typically, no.

Your super is not a cash supply that you can simply tap into when you are short on cash and running out of options. Moreover, there is no option to borrow and repay the money like a standard quick loan either.

In most cases, the only way to access your super before you retire will be to apply for an early release of your super. This will only be possible in a handful of circumstances that may include terminal illness, severe financial hardship or compassionate grounds.

If you are looking to borrow money though and find your super isn’t an option, then Monzi may be able to help. Apply with us today and you may be paired with a lender offering loans online up to $10,000. However, remember that you must repay all loans with interest.

Can I use my super to pay off debt?

Yes. However, relying on your super should be a last resort. Moreover, it will only be available in certain circumstances.

As a guide, early super payments made due to severe financial hardship may only be used to cover your reasonable living expenses. In addition to this, regarding debt, funds can only be used for payments in arrears. That means you cannot access super early to clear your current debt.

Can I make extra contributions to my super?


Grow your nest egg now. Don’t wait!

Additional contributions to your super are possible and can even have tax benefits too. While a small contribution here or there may not seem like much, it can add up over time. As a result, by the time you reach your retirement age, you could be set up nicely. If you’d like to know how much you might retire with, consider using a retirement income calculator.

For more information, approach your employer to determine your salary sacrificing options. Alternatively, you can make post-tax contributions too. Be aware though, that additional contributions may be capped at a certain amount.

At what age can I access my superannuation?

In most cases, you cannot access your super until you turn 65. However, this does come with some exceptions.

Firstly, you can access your super once you reach your preservation age. This is not your pension age. Instead, it refers to when you can access your super if you are retired. In short, it will depend on your date of birth.

Secondly, you may access your super in the event of special circumstances. This may include severe financial hardship as well as certain medical conditions (e.g. terminal illness).

Finally, you may be able to access voluntary contributions as a first home buyer. However, we will explain this further below.

How can I use super to buy a house?

In short, it is possible. However, it is only available through the First Home Super Save Scheme introduced in an attempt to increase housing affordability.

Through the scheme, borrowers can save money to purchase a home through their super, enabling them to take advantage of the concessional tax treatment applied to superannuation.

When the time comes to make a purchase, borrowers can access up to $15,000 in voluntary contributions from any financial year, up to a maximum of $30,000 across all years. As a result, it can make it more accessible for first home buyers to pay their deposit.

While this provides a brief overview, do your research to determine how this may apply to your circumstances.

Can I use my super to pay off my home loan?

Yes, this may be an option.

If you reach your preservation age or 65 and access your super, then it could be possible to use these funds to pay off your mortgage. However, this is usually a last resort. After all, your super is there to fund your retirement. As a result, using it to repay your home loan may not be appropriate.

In any case, it is up to you. While this may be an option to pay off your home loan, you must do your own research to determine how this may apply to your financial situation and home loan. If you are in any doubt, consider approaching a qualified financial advisor.

Can I use my super as security for a loan: what about buying a car?

In most cases, if you are under the age of 65 or haven’t reached your preservation age, then you won’t be able to use your super to buy a car. After all, your super is there to support you through retirement, not help you fund the purchase of a new set of wheels.

However, if you are retired and are living off your super, then you may be free to use the funds in any way you choose. Having said this, make sure that you consider your budget. While you may need a new car, your super shouldn’t be spent without care. However, Monzi cannot provide any direct advice that relates to your financial situation.

In any case, if using your super isn’t an option, then you may need to consider a car loan instead to fund a new vehicle.

Can I use my super as security for a loan: why should I apply with Monzi?

If you’re after simplicity and convenience, then you’ve come to the right place. Monzi can potentially pair you with a great lender in just 60 minutes and all it takes is one easy application.

However, if you’re not convinced that Monzi is right for you, that’s okay. Check out some of the other benefits that you’ll experience when you apply with us:

It’s free

That’s right! It won’t cost you a cent to apply with Monzi.

We’ll simply do our best to pair you with an available lender from our network and won’t ask for anything in return. As a result, you’ve got nothing to lose by giving us a chance.

Surely, you can’t beat that.

We keep your information safe

Cyber-security heavyweights Comodo and McAfee keep our online system secure. As a result, if you share your details with Monzi, you know that they’ll be kept safe. In addition to this, you can also rest assured knowing that your application will only be viewed by those who need to see it.

Fast from start to finish

Applying with Monzi is so quick that you could complete it in minutes. If you apply during business hours, then you may match with a lender in just 60 minutes. Finally, if we match you with a lender, then they will endeavour to assess your application ASAP, so that you can receive an outcome fast.

There’s no paperwork

Gone are the days where your loan application asks you to complete an endless stack of paperwork. With Monzi, you won’t have to complete any at all.

Instead, you’ll just need to enter your details via our easy-to-use online system. Just a few clicks here, a few documents to upload there, and you’re done. In other words, it’s possible to apply for the cash you need from the palm of your hand.

Available Australia-wide

Monzi’s lender-finder service is run by Aussies, for Aussies. As a result, it doesn’t matter which corner of this great nation that you inhabit, Monzi could be there for you.

So, whether you’re out the back of Bourke, or living in beautiful Brisbane, you’re able to apply. All you need is an internet connection and a little bit of free time.

However, remember that while we aim to help as many Aussies as possible, you do need to confirm your eligibility before applying. Your application may not progress if you fail to check any of the four boxes.

Can I use my super as security for a loan? Get in touch with Monzi today

Have any questions about Monzi or what our lender-finder service involves?

No worries! Reach out. Our friendly team is always happy to address any queries or concerns that you might have.

Just email us at and we’ll do what we can to get back to you ASAP. Although, keep in mind that we will only monitor emails during business hours. Not to worry though, we’ll respond as soon as we’re back in the office.

Finally, remember that you will be unable to use your super as security on a loan.

Looking to find a lender online? Try Monzi now

So, can I use my super as security for a loan? Unfortunately, this likely won’t be possible. However, we’re always here to help you find lenders offering the personal loans you need today. So, if you’re looking for a fast and convenient way to discover lenders online, apply now.

Just scroll up to the top of the page and use Monzi’s loan slider to start.

For more information about superannuation, check out Monzi’s guide to the best performing super funds in Australia.

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You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The comparison rate on loans between $300 and $2000 could be up to 199.43%. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.

Loan amount

$2,100 - $4,600


13 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.


Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000


13 months (minimum)

24 months (maximum)


17% Annual Percentage Rate (APR)

36% Comparison Rate p.a.


Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489.

The starting interest rate for a Personal Loan is 17%. Comparison Rate 36% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.