As a pensioner, qualifying for a conventional loan from a bank can have its challenges. The qualification criteria can be difficult to fulfil, especially if you have an adverse credit history, an irregular income stream or rely on Centrelink as your only source of income. If you have applied to multiple lenders with no success, don’t get discouraged as there are funding options available.
Depending on your specific circumstances there may be multiple options for accessing loans beyond the banks. The type of loan(s) you may qualify for will be determined by your current financial circumstances and ability to service them.
*Note: It is extremely important to understand the terms and conditions of any contractual agreement you may enter into. Do not sign or enter into any agreement that you are not 100% comfortable and confident in.
Below is a list of loan options whose lending criteria is geared towards individuals who may have bad credit, irregular income, defaults, be self-employed, on a low income or receiving Centrelink benefits.
If you are currently on Centrelink, do you know about the Advanced Payments program? This allows you to receive a portion of your normal payment in advanced in a lump sum. This is great for emergencies or for helping out with unforseen and unexpected bills. This can be an incredible alternative to applying for a small loan which will come with a variety of fees.
In addition to the Advanced Payments program look into any low income concession cards which you may qualify for.
This is a service that was created through a partnership with the NAB and Good Shepard. They provide affordable low interest loans between $800 and $3000. There are no fees and have flexible repayment options of weekly, fortnightly or monthly. Contact your local NAB for more details.
Non-For-Profit Loan Options
If none of the provide options seem applicable to your situation or you require more specialised services. There are different non-for-profit services that might be able to provide you with the assistance you need. Financial Counselling Australia provides a free, independent and confidential service and has offices throughout Australia.
As they are community based, they can provide you with more detailed information on potential financing options available within your area. Visit Financial Counselling Australia here.