Payday loans for Centrelink customers – Micro loans online

Payday loans for Centrelink customers – how to access credit while on government benefits. Monzi will explore how to apply for a loan from Centrelink themselves, as well as other initiatives potentially available to you.

Man wearing jacket using computer to find payday loans for Centrelink customers

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?

To begin, payday loans generally refer to small unsecured loans offered by payday lenders. Moreover, these loans are usually repaid through direct debit, over a short period of time. Depending on the lender, your repayment terms may range anywhere from a few weeks to months.

The list below shows examples of payday loans:

Payday loans for Centrelink customers onlineAmount (AUD)
Payday loans for Centrelink customers with bad credit$800
Australia payday loans no credit checks for Centrelink customers$1,000
Micro loans for Centrelink customers$1,300

Payday loans for Centrelink customers, in particular, refers to lenders willing to consider applicants on benefits from the Department of Human Services.

If you receive Centrelink, a loan from a payday lender may not be the best option in the long run. Specifically, lenders may charge high fees if you fail to repay your loan.

Moreover, high fees may quickly lead to debt. As a result, you should always consider other options. In particular, you may be eligible for fair loans for Centrelink customers through:

  • The Department of Human Services
  • Community initiatives

The Department of Human Services – Payday loans alternative

If you are on certain benefits, you may be eligible for an advance of your benefits through Centrelink.

To give you a clearer idea, we will explore some frequently asked questions regarding the process.

Does Centrelink lend money?

Centrelink advances are a way for people receiving Centrelink payments to borrow. You may qualify for an advance of your benefits, which you then repay interest free via your future benefits. You can consider this as an option if you need a cash loan while on Centrelink but want to avoid a payday lender.

Can I get a loan with Centrelink?

If you receive payments from the Centrelink, you may find you are eligible for an advance of your benefits. This acts almost like a loan, which you then repay interest free later. You can apply for an advance after at least 3 months of receiving one of the following:

  • Age Pension
  • Disability Support Pension
  • Farm Household Allowance
  • Newstart Allowance
  • Parenting Payment
  • Widow Allowance
  • Widow B Pension
  • Wife Pension
  • Youth Allowance for job seekers

In addition, you are eligible to apply for a cash advance at any time if you receive any of the following:

  • ABSTUDY
  • Austudy
  • Youth Allowance for students
  • Family Tax Benefit A
  • Mobility Allowance

What is a Centrelink advance payment?

An advance payment is in place to help Australians pay for unexpected expenses which you simply do not have the funds to cover. Centrelink customers can apply for an advance payment online, through the Centrelink Express Plus mobile app, or over the phone.

Consumers receive a portion of their future benefits early if the lender approves their application. You then repay this over the coming months out of your regular Centrelink payments.

How much can you borrow from Centrelink?

The amount you’re able to apply for will be determined by the benefit you receive, as well as your personal situation.

For example, if you receive ABSTUDY, Austudy or Newstart, you may be eligible for an advance between $250 and $500, paid either in two instalments or one lump sum.

As a result, Centrelink loans for disability pensioners may be different from Centrelink loans for single parents.

Keep in mind, however, the lowest and highest amounts available may change over time. Therefore, always confirm with the Centrelink directly.

What is an urgent payment Centrelink?

Unlike an Advance Payment, and urgent payment is an early payout of a Centrelink customer’s entitlement. Moreover, urgent payments are designed to help in the event of unforeseen circumstances.

Payday loans for Centrelink customers alternatives – community organisations

Outside of the Government, there are community financial initiatives available to people low incomes. Moreover, certain lenders give safe and fair access to credit.

In particular, The No Interest Loan Scheme (NILS) is offered through Goodshepherd Microfinance.

What can a NILS loan be used for?

The No Interest Loan Scheme (NILS) provides Australian consumers on low incomes with safe access to credit. Moreover, these loans are potentially available for up to $1,500, to cover the cost of essentials. For example, you could use your NILS loan to cover:

  • Fridges, washing machines and other whitegoods
  • Household furniture
  • Certain medical procedures and services
  • Laptops, textbooks and other education materials
  • Car related expenses
  • Electrical goods

Keep in mind, NILS loans are not to be used for the following:

  • Rent
  • Bills
  • As cash

How much can I borrow on a NILS loan?

You can apply for up to $1,500 to cover household, medical and other essentials. Repayments are then spread over 12 to 18 months and are free from interest.

To qualify for NILS, applicants must:

  • Possess a health care or pension card OR earn less than $45,000 a year.
  • Have lived in their current address for at least 3 months.
  • Be able and willing to repay their loan.

Do NILS do credit checks?

In short, there are no credit checks when applying for a NILS loan. As a community initiative, the funds repaid to NILS are then made available to somebody else. This circular model has led to the repayment rate is constantly around 95% to 97%.

You can find out more here.

Payday loans for Centrelink customers online

If you have considered everything above, and still wish to apply for a micro loan, you have the option of applying with a payday lender. These lenders may be able to offer small loans of up to $2,000.

Despite this, a lender-finder service like Monzi may be able to match you with a lender possibly willing to offer a personal loan. Moreover, these personal loans may be offered at larger amounts, potentially up to $10,000!

Before applying for payday loans for Centrelink customers

Be aware that certain lenders may not be able to consider all Centrelink recipients. In other words, there may be certain Centrelink payments that lenders cannot consider. Unfortunately, we cannot speak on behalf of other companies. Therefore, we cannot say for certain which payments will or will not be considered.

Despite this, we’ll explore a few Centrelink payments and what they mean:

  • Age Pension. This benefit supplies support for retirees, or other people no longer working.
  • Carer’s Allowance. Provides support for those people caring for a dependent person.
  • Youth Allowance.You may be eligible for this benefit If you are aged between 16 and 24 and are currently studying, in an apprenticeship, sick or looking for work.
  • Austudy. Available to full-time students aged over 25 years old.
  • Disability Support Pension. If you have a physical condition that prevents you from working in a normal capacity, you may be eligible for this Centrelink payment.
  • Family Tax Benefit. This payment is offered by the Government to help people cover the cost of raising a family.

Monzi alternative to payday loans for Centrelink customers

Monzi’s lender-finder service specialises in pairing Aussie consumers with potential credit providers offering personal loans. Specifically, the network of lenders we associate with may be able to offer personal loans from $300 to $10,000.

Before we go further, it is important to note there is no way for us to guarantee you will be approved. After all, each lender within our network is a separate entity and therefore will have their own assessment policies and procedures.

If you do lodge an application on our site, however, we’ll do our best to match you with a lender ASAP. Moreover, instead of spending your day applying with different lenders, lodge one application on Monzi and we’ll aim to do the rest.

How do I know if I’m eligible for Monzi?

It’s easy to use our service, and we welcome applicants from all walks of life. Despite this, there are a few simple criteria you will first need to meet:

  1. All applicants must be least 18 years of age.
  2. In addition, they must hold an Australian Citizenship.
  3. Have online banking with at least 3 months of current banking history.
  4. Finally, applicants must have a personal contact number and email.

Once you meet all the above criteria, scroll up to the loan slider at the top of the page.

How do I apply for personal alternatives to payday loans for Centrelink customers?

Fortunately, Monzi’s lender-finder service is easy to use, and can potentially be applied for within minutes. In short, we might be able to pair you with a credit provider in three easy steps.

Step one – get started online

Ready to use our lender-finder service? Great – simply scroll up to the loan slider at the top of the page and begin.

Firstly, select the amount you’re thinking of applying for, as well as your ideal repayment terms. You are shown a rough estimate of what the regular repayments might look like; this is just a guide, actual repayments may vary between lenders.

Once you are happy with your selection, click Apply Now.

Step two – complete and submit

Applicants are now taken to the submission form. Here we ask you to provide the information we need to progress. Don’t worry, our system is often able to access a lot of the required information, so this process is generally 100% paperwork free.

Submit your application once you complete.

Step three – outcome

As the lender-finder, we try and match you with a credit provider that may be able to offer what you’re looking for. However, as each lender has their own policies and procedures, we cannot guarantee approval.

Moreover, lenders will always first assess you before making an offer. If approved, the credit provider will be in contact soon with an offer.

It is important you read through your digital loan contract carefully before approving it. In short, the credit provider may not be able to offer exactly what you applied for on our site. They will, however, aim to do their best.

Lenders transfer funds once the consumer approves their contract. Depending on the inter-bank transfers, you may receive your money the same day, or within one business day.

Alternatives to payday loans for Centrelink customers with bad credit

No credit check personal loans or instant cash loans no credit check are popular among consumers with poor credit. In particular, applicants with bad credit may feel a no credit check loan is their only way to secure approval. This is, however, not always true.

In short, when you use Monzi, there may be lenders willing to offer a bad credit personal loan, despite performing a credit check. As such, these lenders are often able to base their assessment on your:

  • Income
  • Expenses
  • Banking history
  • Employment status

Keep in mind, Monzi as the lender-finder will not credit check you; however, the lender you may pair with might as part of their assessment.

We might not be able to find you payday loans Australia no credit checks for Centrelink customers. On the other hand, we might pair you with a lender offering personal loans for bad credit. Our network of lenders potentially offer up to $10,000.

Can I get a loan if I’m not working?

Potentially, but this will be at the discretion of the lender.

If you are unemployed, however, you will still need to show you are earning some sort of regular income. Often, this may be in the form of Centrelnk, but can also be through owning an income-earning asset.

At the end of the day, approval is always at the discretion of the credit provider.

I need help

Consumers needing help may find it on our FAQs page. Here, questions about our service may be answered. If, however, you cannot find the answer you’re looking for, get in contact with us. Consumers can chat with the customer service team at hello@monzi.com.au.

If, however, you have been paired with a lender, contact them directly. In short, once our application leaves our system and is with a lender, we cannot speak on their behalf. Therefore, direct all further questions to them.

Ready to apply?

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Factor In

Costs

Two credit cards
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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

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

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%. 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

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

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

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. 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

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

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

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. 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.