Centrelink Loans

Centrelink Loans

A Centrelink loan is low-cost loan option, generally provided to those receiving Centrelink payments.

If you are receiving Centrelink benefits, on a very low income, are in financial trouble or have a bad credit history and need a loan, rest assured there is help out there. The most common type of loan in this category is the micro loan, cash advance or payday loan, which offers an advance payment of your Centrelink benefit up front, and can be repaid fortnightly using deductions from your normal Centrelink pay cycle.

While getting a third-party payday loan may seem relatively easy through many different institutions, the hidden danger is excessively high interest rates. Your best bet is to avoid these lenders, and stick to government and community options instead.

Centrelink Loan Application on a Low Income

Some official providers of Centrelink loans include the following organisations. They are organisations that are run to assist people on government benefits. Unlike unofficial loan providers or loan companies wanting to take advantage of your situation, they are run to support you.

Centrelink Loan Options in Australia

  • No Interest Loan Scheme (community): Small personal loans with no interest rates and no fees, and can be used to pay for essential household items, health items, or car repairs;
  • StepUp (non-profit): Small personal loans with low interest rates, no fees, and can used to help with any emergency expenses such as fixing your car or household item;
  • AddsUp (non-profit): If you have successfully repaid either of the above loans before, AddsUp will match dollar-for-dollar, every dollar you save over $300, up to $500.

The benefits of getting an advance loan through official channels is they will provide you with a realistic, manageable loan up front, with little to no interest. That means no surprises down the track.

To qualify for a Centrelink loan, you must prove to the lender that you are able to accommodate the repayments and still be able to comfortably pay for your day-to-day expenses. If you are however earning a small income you might be able to make a Low Doc personal loan. Review this page and others on the site for more information about your loan options.

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