Financial Support in Queensland: Loan & Money Options

Queensland residents with low income, impaired credit, and those experiencing hardship for any reason have many financial help options they can rely on. Aside from expensive lending options from private lenders and banks, you can choose from various financial programs provided by the government and various non-profits.

Understanding Low Income Loan Options in Queensland
The key difference between specialty low income loans and that of the banks and credit unions is how the funds can be used – they are specific to essential household and living needs. Loans are not provided for entertainment purposes such as travel or shopping, nor are they for paying down debt or bills.

Features and Use of Loans
Every low to no interest loan program available in Queensland has its own unique features, and they differ greatly depending on the lender and specific loan terms. The things the majority of them have in common include:

• Low or no interest rates
• Small or no fees
• Flexible repayment plans
• Specified items the loan money can be used for

Please note that loan use should be specific to:

• Medical/Dental expenses
• Secondhand car or repairs
• Furniture (couch, bed, chairs, etc.)
• White goods (fridge, washer/dryer, oven, etc.)

Grants, Benefits and Loan Options
Many non-profits offer small low to no interest loans to Queenslanders who experience financial difficulties, this can include churches, community centres and local non-profits. Some of the more popular programs include:

No Interest Loan Scheme (NILS) – These loans can be used to pay for essential goods and services. You can get between $300 and $1,200, and repayments can be extended to 18 months. NILS eligibility requirements include having an income of less than $45,000 a year.

Queensland Housing Finance Loan – This government financing plan can be used to purchase a house, unit, duplex, or town-house, as well as to build a house from scratch. It’s available to those with a household income lower than $141,000 a year. Note that this financing option is granted to those who can’t get loans from banks, but to be eligible, you must have no significant debts. You also need to have enough savings to cover the costs of a deposit, legal fees, insurance, etc. The deposit for this loan is only 2%.

Bond Loan – This loan from the Queensland government can be used to pay for a rental bond or deposit. To be eligible for the loan you need to have less than $2,500 in cash or savings, not be owner or part-owner of a property, and have any outstanding debts to the relevant department. Note that this bond can be used to pay only for properties where rent doesn’t get higher than 60% of the household gross weekly income. Learn more on getting a bond loan.

Mortgage Relief Loan – This government loan can provide finance if you are struggling to keep up with mortgage payments. It has no interest or applications fees, but you can only borrow up to $20,000 that must be repaid over 10 years. The loan is available only to those who are in the imminent danger of losing their homes. Get details on this program here.

QRAA Programs – This Queensland Statutory Body provides financial assistance to the rural regions through a variety of loans and concessions. Primary producers looking to upgrade or those who want to start this business can apply for productivity loans. Farmers can be eligible for Drought Recovery Concessional Loans Scheme or Drought Concessional Loans Scheme to recover, deal with, or prepare for droughts. Queensland primary producers, businesses, and non-profits may also be eligible for disaster recovery assistance. Contact QRAA for detailed information and specific eligibility requirements of different programs.

* Learn about additional nationally provided loans, grants and advance options that may help you. If you are struggling to pay utility bills, there are free assistance programs that don’t require you to take out a loan.

Pros/Cons of These Loans
Advantages of taking low to no interest loans in Queensland include:

• A chance to overcome your financial difficulties
• Minimal eligibility requirements
• Low or non-existent rates and fees
• A chance to start a new business or get training for a new career

Disadvantages of getting this kind of loans are:

• Specific regulations of loan money use
• Getting further into debt
• Highly specific eligibility requirements

Eligibility Requirements
General eligibility guidelines may include but are not limited to:

• Being a Queensland resident for no less than 3 months
• Age over 18
• Minimal income of $25,000 a year (varies)
• Ability to make repayments
• No significant debts (current or in the past)
• Credit history (can be overlooked for certain loans)
• Purpose of the loan
• Savings (only required for some loans)

How to Apply
The application process for the majority of low to no interest loans in Queensland is relatively simple:

1. Collect the documents required by the lender
2. Fill out the relevant application forms and file necessary paperwork
3. Get approval

The application process should be explained in detail on the lender’s website.

FREQUENTLY ASKED QUESTIONS
Can I get a loan if I don’t have a job?
Some loans can be offered for currently unemployed people receiving government payments or those intending to use the money to seek a job.

What if I have a bad credit score?
A poor credit score has no bearing on many small low to no interest loans. However, you should remember that taking a loan could lower your score further.

I don’t think I will qualify for any of these, are there more options?
Fortunately, there are other professional programs available. Reach out to your nearest financial counselor, they have numerous contacts, both locally and nationally to help. This is a free and confidential service.