What Is A Centrelink Loan?
The Centrelink Master Program, commonly known as Centrelink, is a Department of Human Services master program offered by the Australian Government. Under this program, the Australian Government delivers a wide range of government payments and services for the unemployed, retirees, people with disabilities, Indigenous Australians, students aged 16-24 and apprentices from diverse cultural and linguistic backgrounds. Centrelink loan is a loan option that can be applied if you are receiving Centrelink payments.
If you are receiving Centrelink payments, you might find it difficult to access credit. But there are still several loan options available when you need cash. Such Centrelink loans can be obtained from credit unions, banks and short-term online lenders. There are several community and government financial assistance schemes available as well. There are a few eligibility criteria that you will have to fulfill to apply for such short term loan.
To Make Your Centrelink Loan Application Count
Find Out If You Are Eligible- Before applying you should check the minimum eligibility criteria listed by the lenders. Only if you meet the minimum eligibility you will be able to apply.
Centrelink Accepted- Not all banks or lenders will accept your Government benefits as income. Before applying, check if the lender requires you to be employed or if they have clearly stated that those on Centrelink cannot apply.
Get Easy Approval- You should get in touch with a lender to discuss your eligibility or call your current bank so that you can have a better chance of being approved with.
Government And Community Financial Assistance Options
Anyone who receives Centrelink payments, have several other options in addition to traditional financial institutions and payday lenders. There are several schemes and programs designed to give you access to credit, mostly for no or low interest. Below are some of the options available-
Pension Loans Scheme
If you have reached pension age, you receive a reduced age pension rate and you have equity in Australian real estate, you may qualify for a Pension Loan. These loans can be short term solution or can also be obtained for a longer period.
These are unsecured personal loans. An amount between $800 and $3,000 can be borrowed by individuals and families on low incomes upon approval against these loans.
No Interest Loans Scheme (NILS)
Offered by Good Shepherd Microfinance, this loan needs to be repaid over a 12 to 18 months. You can borrow between $300 and $1,200 that can be used to purchase goods and services. You will not be charged any fees or interest. To be eligible you should have a Health Care Card/Pension Card to confirm you have a low income, living in your current residence for three months and confirm your capacity to repay.
Centrelink Cash Advance
You could be eligible for an advance on your Centrelink payments and it will depend on the amount of payment you receive. It will also depend on for how long you have been receiving. You can receive an advance only once in a year.
You may be eligible for a concession card if you are a Centrelink recipient. You can further check the website of Centrelink to see what is available.
Loans For Those Who Receive Centrelink
If you are receiving Centrelink payments and are in need of a loan you can apply for different loan deals that include personal loans, payday loans, car loans and overdrafts.
Calculate Borrowing Ability
If you are eligible for a Centrelink loan, you should first check your recent Centrelink statement to find out your annual income. Do not forget to include your supplementary income.
It is easy to be approved for a loan when you receive certain types of Centrelink payments. For instance, lenders do not accept youth allowance as a form of income. So, the very first step to apply for Centrelink loan is to identify the type of Centrelink benefit you are currently receiving. You can check it by looking at your Centrelink documents. Consider all the options available to you so that you can find the one that best suits your requirement.