How to Apply for a Low Income Loan in Australia: Am I Eligible?

 
Have you fallen on hard times? Like many Aussies, you may find yourself in need of a low income loan. There are several options to help you out, depending on various factors.

Let’s take a look at what low income loan providers consider when it comes to loan eligibility:

Age: You’ll need to be 18 or older to qualify for most loans, and others are only available to senior citizens.

Income: Whether your lender is public or private, they’re less likely to loan to you if you can’t meet (and prove that you can fulfill) a repayment obligation. As a result, your income affects your loan eligibility.

 
Centrelink status: Some loans require you to have income apart from Centrelink, but others permit Centrelink as your sole income source when it comes to loan repayment.

Student eligibility: Are you a student? You may be eligible for a special loan rate, even if your need is emergency versus educational.

Retiree/pensioner status: Are you a pensioner? If so, there are many low income loan assistance programs from the government ­– ready to assist you.

Length of time at residence: Believe it or not, private lenders consider your length of time at your current residence as a factor in loan eligibility, so be sure to check the fine print of each contract.

Current assets: What do you currently own? Could any of that be considered collateral, such as a house? Remember, this means you’ll be potentially borrowing from the value of your home or transportation. Loan providers look at the assets you have in hand, and that includes cash in the bank account.

What you need or want the loan for: If you’ve got an immediate financial hardship due to an emergency expense, you can qualify for a special NILS loan. NILS covers up to $1500 of expenses, so long as they are emergency needs like a new appliance or a car repair.

You can use NILS on appliances, school supplies, medical expenses, and dental services – but if you can prove hardship, you may not be so limited.

 
Residency status: For most public loans, you must be a citizen of Australia to qualify. In some cases, permanent residents will also qualify. If you’re just visiting or here on a work visa, you’re not entitled to the same benefits as citizens.
Have you decided about what kind of loan to search for? Having the above information at the ready can help you determine which type of loan is best to apply for. Your first stop, however, should be your financial counsellor, who can help you carefully evaluate and narrow down these options.

Review a full list of different types of low income loans here.