There are essentially two types of Centrelink loans available and multiple options within these two…
If you looking for a small loan, you may only be aware of retail banks and payday type lenders, there is however other options – social enterprise and non-profits. Consumers with fair to bad credit may often be refused personal loans by general lenders.
Payday loans offer a solution for short term loans but come at a high cost.
Fairloans offer a middle ground solution for affordable loans between $1,000 and $4,000 with loan terms up to a year.
Fairloans consider themselves a social enterprise, tasked with providing fair interest-rate loans to all Australians while also providing financial mentoring. Fairloans receives part of its funding from the Australian Government through its Department of Families, Housing, Community Services and Indigenous Affairs and the National Australia Bank, although the government accepts no responsibility and does not endorse or support any loan products by Fairloans.
Fairloans is also an accredited member of the Finance Brokers Association of Australia (FBAA) which provides the company professional training and courses on financial wellness. Fairloans is also a Financial Ombudsman Member for the fair treatment of all customers.
As a medium-term length lender, Fairloans products are limited in number, but can be used for almost any purpose. Fairloans typically offers loan amounts:
These loans have repayment periods up to one-year maximum.
Uses of These Loans
During the application process, Fairloans calculates the loan amount that is best suited for your financial situation, taking into account your ability to repay it without over-extending your monthly budget. These loans are considered personal loans, and as such can be used for a wide array of reasons. From providing financing for travel costs for a vacation to getting much needed cash for vehicle or home repairs, the funds can be used for almost anything.
As a financial mentor however, Fairloans explains that even these type of loans should only be used when other resources have been exhausted, and although the interest is cheaper than payday loans and most credit cards, they do still come with a cost.
Why These Loans Can Still Help You
Fairloans offers loan products that fill a lending gap for Australians that have substandard or poor credit but still have emergencies and needs in regards to loans. Here are some eligibility requirements for a Fairloans loan:
- You must be at least 21 years old
- A citizen or permanent resident
- No outstanding default payments more than $1,000 and
- An annual income less than $60,000.
Cost of Borrowing
Below are the general costs associated with Fairloans.
– Loans up to $2000 have an establishment fee of $199.50 to $399
– Loans from $3000 to $4000 have an establishment fee of $4000 and have an APR of 12.49%
– Other fees include direct debits, default and collection ranging from $0.99 to $10 or at cost.
The application process is simple and fast. Within five minutes you can apply for a loan, and the entire process is completed online. There are minimal documents required and you will not need to provide extraneous documents to get your loan. It’s a 4 step process that includes:
– Choosing a loan
– Providing your financial details
– Providing your personal details
– Providing your documents (fax or email)
Other financial assistance to consider
In addition to Fairloans, there are other government benefits, grants and non-profits that also provide financial assistance whether that be through an advance, loan or service. Below are other options to consider.
– A great non-loan option for Centrelink beneficiaries is the Advanced Payment
– StepUp is a low rate no fees small loan option
– Nils is a no interest no fees small loan option
– If you need money to help with utility bills, there are free assistance programs available