Payday Loans Centrelink – Credit On Benefits

Payday loans Centrelink – a popular search term for benefit recipients looking for access to cash. Payday loans, however, may not be the best option in the long run. If you are unemployed and receiving government benefits, especially, you should always consider other options first.

Monzi is a lender-finding service. We do not offer financial advice. Consider seeking independent legal, financial, taxation or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What are payday loans for Centrelink customers?

Essentially, these small unsecured loans of $2,000 and under are available to consumers receiving benefits. Moreover, if you are approved, you and your lender will agree on a repayment cycle, in which your repayments will automatically be deducted.

To give you a better idea, we will go through alternatives to payday loans Centrelink.

Can I borrow money from Centrelink?

Yes; Centrelink has options for people needing a helping hand. These options are often much better than taking out a loan from a payday lender.

You may be eligible for an advance of certain Centrelink payments. You will then repay this out of your future benefits, free of interest.

Alternatively, you may be eligible for a one-off crisis payment if you are in hardship.

We will explore both of these options below.

How much advance can you borrow from Centrelink?

The amount you’re able to borrow from Centrelink will be determined by the benefit you receive and your personal situation.

For example, if you receive the Family Tax Benefit Part A, you may be eligible for regular advances, as well as a one-off advance at any time. However, your advances cannot exceed a total of $1,131.10.

In addition, if you’re single and looking for a loan from Centrelink for disability pensioners, you may be eligible for an advance of $1,323.45 every 6 months.

The figures presented above may change over time. Therefore, for more information, visit Services Australia’s advance payment page.

How do I get an advance from Centrelink?

Centrelink makes it easy to apply for an advance of your benefits. Here’s how it all goes down:

  • Head to myGov and select Centrelink.
  • Next, go to Apply for Advance.
  • If you are deemed eligible for an advance, click Get Started.
  • Follow the instructions on each step.
  • Submit your application once you are complete.

Keep in mind, not everybody is eligible for an advance. For example, if you have already taken an advance out in the past 12 months, or owe a debt to the Government, you may not be eligible. However, always confirm with Services Australia yourself.

How much is a crisis payment?

If you are in severe hardship and not sure where to turn, get in contact with Services Australia with regards to a crisis payment. In short, this is a one-off payment intended to cover you in the event of a major life change.

To qualify, you must meet the following three criteria:

  1. Be eligible for Centrelink income support benefits.
  2. Currently experiencing financial hardship.
  3. Been through a severe change in circumstance.

In addition, the hardship payment you’re eligible for will be determined by the income support payment you receive.

Can Centrelink help me find a job?

Yes! You may be eligible for income support payments like Newstart Allowance or Youth Allowance for job seekers.

Outside of financial help, you can enlist aid help of employment service to help you prepare for interviews and look for work. Moreover, these providers are able to help you access training, as well as devices like computers and phones to help as you look for jobs in your local area.

Want more information? You can find it here.

Payday loans Centrelink alternatives – Goodshepherd Microfinance

Goodshepherd Microfinance is a charity initiative, aiming to provide fair loans for Centrelink customers, as well as other low-income individuals and families.

Working with corporate, government and communities, Goodshepherd provides access to credit to consumers that would otherwise be excluded from financial institutions.

Two of Goodshepherd’s major initiatives include the No Interest Loan Scheme (NILS) and StepUP. We will quickly explore both of these below.

The No Interest Loan Scheme (NILS)

As the name suggests, NILS offers interest-free credit to low-income families and individuals. Specifically, these loans are available up to $1,500 and can be used to cover essential goods and services, including:

  • White goods and other essential household items
  • Certain medical services
  • Education essentials
  • Car related expenses
  • Furniture

If you are considering applying for NILS, you must first meet their three basic eligibility criteria:

  1. Possess a health care card/pension card OR earn less than $45,000 a year.
  2. Live in your current address for at least 3 months.
  3. Show a willingness and ability to repay.

If you are eligible, you can find your nearest provider via the NILS website.

StepUP loan

StepUP loans are very similar to NILS in the fact they are designed for consumers receiving low incomes who find it hard to access finance from a traditional lender. Unlike NILS, however, consumers must pay a small amount of interest on a StepUP loan. Moreover, you can potentially borrow from $800 to $3,000.

To qualify, consumers must:

  • Have a Health Care Card/Pension Card, OR be a Family Tax Benefit A recipient.
  • Live in your current address for more than 3 months.

Moreover, you can potentially use your StepUP loan for things like:

  • Secondhand cars or repairs
  • Computers
  • Vocational studies
  • Certain medical expenses

There may be a StepUP provider near you.

Get in contact with your utility provider

If your electricity, gas or water bills are stacking up and causing your financial stress, get in contact with your provider. Generally, your utility provider will have a hardship department in place, designed to deal with these claims.

Depending on the result, you may be able to pay your bills in instalments or apply for emergency vouchers.

Why look for Payday loans Centrelink alternatives?

While payday loans Centrelink no credit check may seem like a good idea initially, they may put you in the worse financial position in the long run.

Specifically, while your cash flow shortage may be solved for a moment, you will still have to repay your loan. Moreover, if you fail to repay your loan according to your contract, you may be charged additional fees that might quickly spiral out of control.

Therefore, the above options are generally much more preferable to an Australian payday loan, as they are designed with people on Centrelink in mind and are not run for profit.

If you have been searching online for any of the following terms, you should absolutely consider the above options before applying for credit from a lender.

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Looking for bad credit Centrelink payday loans?

Finding a loan may already feel difficult if you are receiving Centrelink. After all, a few hundred dollars to cover a cash shortfall may lead to months of ongoing payments. Throw a poor credit record in there as well, you may feel even more cornered.

Consumers be wary about applying for bad credit payday loans on Centrelink, especially if they have poor credit. In short, if you cannot repay your bad credit loan according to your contract, you may find yourself deeper in debt and with an even poorer credit record.

Therefore, if you are not sure where to turn, consider calling the free National Debt Helpline on 1800 007 007. Open from 9:30 am to 4:30 pm, the National Debt Hotline gives free and impartial advice to Australians consumers.

Alternatively, you can visit the National Debt Helpline’s website and access free financial counselling.

Man walking with surfboard on beach walking towards payday loans Centrelink

What does Monzi do?

Monzi is a lender-finder service. In other words, we aim to match you with a potential lender offering loans from $300 to $10,000.

We potentially take the hassle out of finding a credit provider. Instead of applying with many different lenders, lodge one application with us. If a lender is able to make you an offer, they will be in touch.

Therefore, when you use Monzi, the lenders come to you!

Keep in mind, however, if you are receiving benefits, a personal loan may not solve your problems.

Can Monzi find me payday loans Centrelink no credit check Australia?

Monzi may not be able to match you with a payday lender. This is because our network of lenders generally offers personal loans ranging from $300 to $10,000. The difference between payday and personal loans may seem nominal, but there are a few contrasts; we’ll address these later.

As for the credit check question – we, unfortunately, cannot guarantee whether or not one will occur. After all, payday loans no credit checks are offered completely at the discretion of the lender, as per their assessment policies.

Despite this, credit providers are often more concerned with other aspects of your application, outside of your credit score. For example, lenders will always consider your:

  • Income
  • Expenses
  • Banking history

What is the difference between personal loans and payday loans Centrelink?

Generally, payday loans are only offered as small unsecured loans of $2,000 and under. Personal loans, on the other hand, can be offered as unsecured loans of $2,000 and under, as well as secured loans from $2,100 to $10,000. As a result, they may be an alternative to payday loans.

Additionally, certain payday lenders have been characterised as only offering very short, inflexible repayment terms; sometimes as short as 16 days!

Personal loans, on the other hand, may offer more flexible repayment terms. Generally, your repayment term will range from several months to years. Furthermore, consumers may be able to choose a weekly, fortnightly, or monthly repayment schedule.

Are there any secured payday loans for Centrelink customers online?

If we consider payday loans to be small loans of up to $2,000 then, no. It is against the law for a lender to accept security on a loan of under $2,000.

If you apply for a personal loan of $2,100 to $10,000, you will often be required to attach one of your assets as security against the loan. Lenders are able to accept a car, caravan, motorbike or boat as security.

Security acts as a guarantee that the borrower will repay their loan according to their contract. If, however, the borrower fails to repay their loan, the lender has the right to repossess the asset and recover some of their losses.

As lenders can cover their losses, secured loans are often seen as less risky. They are, as a result, offered at higher amounts than unsecured loans, and may even come with lower rates and fees.

I need fast money, do you offer instant cash?

Technically, as the lender-finder, Monzi does not offer any sort of credit. Instead, we aim to point you in the direction of a great lender that may be able to offer what you’re looking for. If you are looking for a lender that can make things happen quickly, let Monzi help you.

  • Firstly, applying is very simple. You may be able to complete it in minutes.
  • Once you apply, we’ll aim to get to work ASAP.
  • Lenders will assess you and get in touch if approved.
  • Lenders will process your funds after you approve your contract.
  • Depending on when you approve your contract, you may receive your funds the same day, or within one business day.

Warning against borrowing

It can be expensive to borrow small loans. Moreover, loans may not solve your money problems. Consider the options below:

For help managing debt, call 1800 007 007 from anywhere in Australia. Free financial counsellors may be able to help.

Trouble paying bills? Talk to your utility provider. In short, they may be able to offer a payment plan.

Receive Centrelink? You may be able to get an advance of your payment. Scroll up for more information.

Always consider your options before applying for credit.

I need assistance

Our service is super easy to use. If you need a hand with our service, get in contact. You can chat with a real human over at

We can help with any questions you have about Monzi.

For questions about Centrelink, please contact them; we can’t speak on behalf of other entities.

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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


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. The minimum and maximum loan term is 12 months. WARNING: This comparison rate is true 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.

Loan amount

$2,001 - $4,600


13 months (minimum)

24 months (maximum)


48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principal Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Annual Percentage Rate (APR) for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true 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. Click here to see a worked example.

Loan amount

$5,000 - $10,000


13 months (minimum)

24 months (maximum)


21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.


Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principal Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Annual Percentage Rate (APR) for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true 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. Click here to see a worked example.