Unemployed Loans

If you are currently unemployed and facing financial difficulties or being let go from your current employment, understanding which financial institutes and government benefits available to help you is important. Before you jump into any decision about how to handle your finances, it is important that you explore and understand all of your options. You first want to make sure you are receiving all of the benefits you are entitled to during your time of unemployment. If you are in need of a loan make sure you are applying for the right type of loan for your situation.

Compare Unemployed Loan Options
Loans for unemployed Australians are hard to come by, generally payday type lenders advertise their services. These may not be the best option and can put you in a worse position. Engaging with the wrong lender can seriously affect your financial situation. Below are some tips on how to avoid bad lenders.

• Check business reviews online
• Check for complaints about the business online
• Search comparison sites for options but be careful, these sites generally promote businesses that advertise with them.
• Check with ASIC that the business is licenced

These points will help you avoid toxic loans or falling victim to scams.

Quick view – See loan and benefit options for specific circumstances here.

Below are multiple loan and money assistance programs for those who are unemployed


 
Unemployment Benefits
As soon as you lose your job, you should apply for the Newstart Allowance program. This will help cover some your basic living expenses until you are able to find a job. As long as you are 22-years old or older and not old enough for Age Pension, you may qualify for this program. You will receive a regular payment of up to $699.90 fortnightly depending on your specific set of circumstances. This may also entitle you to other great benefits, such as Rent Assistance, a reduction in your utility bills, a Clean Energy Supplement and an Income Support Bonus. You will also receive special support services to help you find a job faster. Here is a list of benefits available for those needing help with various financial issues.

If you aren’t collecting Centrelink benefits yet, visit the Centrelink estimator and calculator to get a strong idea on what type of financial assistance you may qualify for. This is a quick way to see if the benefits are worth your time applying for based on your situation. Applying for unemployment benefits isn’t a quick process.

Centrepay
If you are receiving benefits from the government, you may be eligible for Centrepay. This program allows you to pay certain bills, such as utilities, phone, rent, child care and medical services, right from your Centrelink payments. Many companies throughout the country work with Centrepay and will allow you to pay any outstanding balances slowly over time. This also works to keep your payments more consistent throughout the year, which can help you budget better.

Loan Options For Unemployed
If you have fallen behind on your monthly bills, the first thing you want to do is contact the companies or lenders you owe money. They may be willing to work out a payment plan that is more manageable for you to handle. This could help you avoid the need to obtain a loan. If, after this, you still need a loan, you should consider obtaining one of these no or low interest loans sponsored by the government.


 
No Interest Loan Scheme. If you are receiving Centrelink payments from the government, you may be eligible for a no interest loan of up to $1,200. These loans are meant to help low-come families purchase necessary household items or make car repairs. It can be slowly paid back over the course of 18 months.

StepUp Loan. These loans allow low-income families the ability to take out a loan for up to $3,000, with a very low interest rate. These funds can be used for any household, personal, or domestic purpose, such as a car or computer. There are no added fees or charges associated with this loan and it can be slowly repaid over time.

Apply with a co-signer. If you are between jobs or have some sort of stable income stream, apply with a co-signer maybe a option. Whilst loans for unemployed people are hard to qualify for a application with a co-signer who has a solid work history can make things easier.

Things to know before applying for a loan while unemployed

Before you try to obtain a loan, understand that the likely hood of you actually qualifying from a mainstream lender is minimal. In addition, multiple loan application submissions can actually hurt your credit score. Assistance through family, non-profits or the government may be more beneficial.

If you are applying for a loan to pay your bills, try reaching out to your creditors and service providers first to see if they will work with you; in many cases they may provide you with a month or two lapse in payment until your obtain another job. One of the most important things you should take advantage of is the governmental benefits you are entitled to because this can assist you many of you bills. Having income protection is also of great benefit.

There are multiple government services that provide financial aid for emergency situations in regards to day to day living needs – Services such as Crisis Payments and Community Engagement Offices.

Avoid Cash Advance Loans
Unfortunately, there are many companies out their offering instant cash loans to people who are unemployed. While this may sound like a great option at first, it is vital that you read the fine print. Many of these loans come with extremely high interest rates and you will be paying back a substantially higher amount then you originally borrowed. In addition, if you do not get a job as quickly as you thought you would, you will have trouble paying this loan back. This may cause you to be charged extra late fees that can add up over time. Also, if you used anything for collateral, such as your car, you may actually lose it if you are not able to pay the loan back in a timely manner. These types of loans should be avoided at all costs.

In addition to looking for financial help while unemployed, read about other services available to help you while dealing with unemployment.

This Post Has 43 Comments

  1. lornetta Williams

    Need help with a bond loan

    1. lowincomeassistance

      Hi Lornetta, please review our State based service pages which can be found on our map of the homepage or visit this page for bond loan assistance.

      Regards,
      LILA

      1. janet bean

        Hi my name is janet is it possible to help me with a unemployment loan the moment I found a decent job I will start paying off the loan. I’m 48yr old. I need money urgent to get a place to stay. It. Thank you janet
        I need money for food and so on please

        1. Richard

          Hi Janet,

          There are a few different options available to you to assist with the different points you have mentioned. If you need immediate cash assistance you may be able to apply for a Advanced Payment through Centrelink, you may also qualify for a Crisis Payment. In addition to that here is some information on rental and food assistance. Lastly, speaking to a free financial counselour may benefit you greatly as they will be able to provide you with immediate local support based on your location.

          Regards,
          LILA

        2. chris

          hi my name is chris im wondering if you could help me with a unemployment loan my mother just passed away this week and im in victoria and it took all my unemployment money go to tasmania to see her off can i get some help to i get back on my feet as im completely broke can i get some help please

          1. Richard

            Hi Chris,

            You may want to consider a crisis or advanced payment through Centrelink for your current situation. You could also reach out to your local financial counselor to see what local financial assistance programs are available in your local area.

      2. Craig gathard

        I have a new job to start on 4/4 16 we have been struggling for a while and this opportunity will make it for us we cannot afford the bond is there any help we may get on a low interest loan

  2. courtney

    Hi, I am 18 years unemployed and on a benefit from Centrelink (Youth Allowance) I am also studying part-time. I need a loan for a laptop for my study and everyday use. I have looked and called up so many ‘loans’ but I cannot find one for a unemployed youth allowance student. Very hard and frustrating. If someone can recommend somewhere that can do this for me that would be very much appreciated.

    1. lowincomeassistance

      Hi Courtney,

      Try contacting your local financial counsellour, they have a large network of contacts and partnerships with organisations that may be able to help you.

      Good luck with your studies!

      Regards,
      LILA

  3. William

    How do you apply for a set up loan? I can’t see any links to financial institutions providing them. I’m in need of a new car so I an get a job and it looks like a set up loan is my only option.

    1. Richard

      Hi William,

      StepUp is provided by Good Shepard Microfinance Follow the link provided, their offices are provided towards the bottom of the page.

      Regards,
      LILA

      1. kelly.parissakis

        I want to apply for a loan

  4. Kiani

    Hi,
    I am 18yrs, a full-time student at uni i am on youth allowance. But I need a loan to get a new car as my car has just been written off and I am expecting in october…

    1. Richard

      Hi Kiani,

      In this situation it may be best to speak to a free financial counsellour as you may be eligible for a range of grants and benefits.

      Regards,
      LILA

  5. Kayla Bari

    Please read my comment,
    I am in serious need of help, I am 18 years old, I have lived out of home for 3 and a half years due to personal issues with both my mum and dad, I am not aloud to live with them, my dad has a business and my mum works for him, they earn too much money for me to be able to claim a benifit, they will not sign for any paperwork to say I’m living away from them as they don’t believe in centerlink, and I am not eligible to be classed as an independent until I am 21. I have no job, no home of my own, I live with my partner who I rely on to pay rent, bills, to put food on the table for me, cloth me and pay for my personal hygiene needs, and on top of all that he needs to pay to look after himself and our life habits and luxuries. It is really not fair , I am not eligible anywhere for a loan or short term cash loan,
    I need help please someone give me a chance I need a stepping stone to help me get out of this mess I have forever been stuck in.
    Please get in touch with me I would really appreciate and use the help in any way that can help me look after myself!

    1. Richard

      Hi Kayla,

      Contacting a free financial counsellor may be of great assistance. They have the resource and contacts to help you get back on your feet. They are a national organisation and will be able to provide you with local and federal support options.

      Regards,
      LILA

  6. Ian

    Hi there, I’m currently have no income since end of March due to fractured leg. and I will be unable to work for another 3week. I was behind on my rent and bills, need to get loan of amour $3000 to settle down while waiting for my leg to recover ..

    #in term of job will be no problem as I will have a full time position available for me next month

    1. Richard

      Hi Ian,

      Try speaking to the team at goodshepherdmicrofinance.org.au to see if they can assist. There are some other options shown on our Centrelink loans page.

      Regards,
      LILA

  7. Joshua Da Silva

    Hey there, my names Josh and I’m study right now but I’m struggling to buy a new laptop cause my last got heaps of viruses, and I need a little loan to help me keep on studying

    1. Richard

      Hi Josh,

      Have you thought of taking your laptop to a repair shop to have them clean your laptop out for you – this may be a far cheaper and effective alternative to purchasing a new laptop. Certain schools may even offer this service for free or at a low price. If that is not a option check out these possible loan options here.

      Regards,
      LILA

  8. emma

    would like a loan.pls

    1. Richard

      Hi Emma,

      We are not a actual lender but provide low income earners with details on possible loan options and benefits to assist with financial issues. We try sourcing responsible lending providers such as non-profits and government partnerships/initiatives. If you can be more specific with your loan needs we may be able to point you in the direction.

      Regards,
      LILA

  9. Jodie

    Hi, ima single mum and about to start study again and in desperat need of a car now the only thing is I don’t have the best credit rating but looking for the opportunity to prove im now older and wiser and on a different road and that includes paying bills but same time can’t afford to get in a mess with interest rates ect. Which direction would best suit me and how quick can applications go through? Thank you 🙂

    1. Richard

      Hi Jodie,

      It may be difficult to get a car loan if Centrelink is your only source of income. However, there may be a possibility through the Goodshepherdmicrofinance organisation. They provide low and no interest loans for important household needs and transportation in certain circumstances.

      Regards,
      LILA

  10. tshepo

    i’m hereby looking for a student loan to complete my course at tvet college and i will pay back when i got a job after completed my course.

    1. Richard

      Hi tshepo,

      I try contacting tvet college to see what student assistance they provide. They may have their own internal lending for students and or can tell you about government benefits such as the Youth Allowance.

      Regards,
      LILA

  11. Fargen

    Hi I would like too apply for a loan.
    Thank You..

    1. Richard

      Hi Fargen,

      We are not a actual lender but a resource which provides information on responsible lending services to low income earners. Please review our different loan options section to see potential loans that may be available to you.

  12. Julia Doolah

    I am a full-time student at Uni and I really need about $3000 to pay for my study by 31 of August 2015. I am a Permanent Resident and cannot apply for HELP. I am on Austudy, my husband is on Abstudy so we will be able to pay loan back but I cannot find $3000 during this short period of time. Any ideas, please.
    Thank you

    1. Richard

      Hi Julia,

      Try reviewing 2 potential loan options here.

      Regards,
      LILA

  13. Rahat

    Hi I am a permanent residence of Australia.I need a loan of 5000 AUD. Currently i am working as an internship.There is a good chance of being permanent after 4 months.My wife is now pregnant and she is unable to work now.So i need at least 5000 AUD to survive properly in this 4 months.I have around 3000 in my saving account and i have one credit card but there is no money left but i am paying regularly the monthly payment to my credit card.Please advice me.
    Thanks

    1. Richard

      Hi Rahat,

      A loan may not be your best option in this situation as you don’t know if the internship will lead to full time work which would allow you to make your repayments on top of covering other bills. Are you currently collecting all benefits you may be entitled to? This can go along way in helping you through this period. Here is a list of popular benefits and you may also want to consider speaking to a financial counsellor for free, they can provide professional advice on additional financial options.

  14. Janeece Tuohy

    I need emergency loan urgently.

    1. Richard

      Janeece,

      Please visit the following pages for urgent financial needs – Crisis Payment or Advanced Payment

  15. Francisco Dubitsky

    You can certainly see your expertise in the work you write. The world hopes for more passionate writers like you who are not afraid to say how they believe. Always follow your heart.

  16. Benard Kemboi

    Hi I am a student nurse and a Kenyan. I’m a self sponsored student in a Medical Training College.. I find life to be hard a times struggling to make ends meet. Please if I can get a loan to pay out my rental and for upkeep. Thank you.

  17. Danielle Turner

    Hi my name is Danielle,

    I currently receive Newstart, but I am in the middle of trying to obtain the disability support pension, I need help with bond and two weeks rent in advance ( housing department can’t help I am paying off one and have 134 dollars left to pay off) I have a place to move to I just need help with the bond , I receive about $550 a fortnight , what can you suggest for me ? Thank you

  18. Sarah

    Hello, I have recently lost my job and just started receiving Newstart Allowance payments. I have a job lined up starting in August in Germany and am in desperate need of a loan minimum $3000 to get me over there, pay bond and set up my new place. Is there anywhere that will lend money on the basis of being able to pay it back in a few months? I am struggling to find temporary employment as many places won’t employ for just a few short months. Any help would be great. Thank you Sarah

  19. Yolanda

    I need an urgent load for my sick father
    We have nothing
    We’ll pay it as soon as im financially stable

  20. Anna

    Hi.
    Just want to find out some info. I am currently unemployed and receive family tax benefit. I have 3 children I need to take to schools and such, I have a car that needs repairs (its can’t be driven without being repaired) I need a loan or help with getting some sort of loan for around $1000 it needs to be a quick loan. I can not get another loan from centrelink for another 5 months.
    Any advice would be appreciated. Thanks

  21. Hannah

    Hi my name is Hannah. Please any help would be amazing!
    I am 17 in 1 month and have been out of home since the age of 13.
    I am currently unemployed and am renting my own place. I am wanting to get a $1000 loan to pay back at $125p/f. Which I am certainly more than cabable to afford. I am wanting to get this loan so I can pay bills and get registration for my first car!!

    Please help. thanks ☺️

  22. Joanne

    Hi. I’m currently unemployed and my financial situation is starting to get a little out of control and just need to get over this hurdle. I have contacted several charities and they are limited with funds and have no funding available to support at this time. I think from reading your website that I may be eligiable for NILS. How do I go about applying for NILS?

  23. Monae Davis

    Hi. I am 19 and on youth allowance with part disability benefit. I live at home with my mum and brother. My car has many problems that I can’t afford to get fixed. Would I be eligible for any kind of loan to purchase a car?
    Thanks

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