What Are Loans for Pensioners?
Loans for pensioners in Australia are a great way for people on the age pension programme or the Centrelink disability pension to get funds quickly when they need it.
In the age pension programme in Australia, the government pays residents who are 66 years of age or older if they meet the eligibility requirement, and Centrelink disability support is for Australian residents who are physically or intellectually impaired and can't work.
However, these pension programmes don't pay a lot. Sometimes the dependants may need emergency funds, and when this happens, they can apply for a pensioner loan, which can go up to $10,000 and provide same day funding.
Loan Options for Pensioners
There are different types of loans that pensioners can get in Australia, and it's best for you to understand the ins and outs of each type before deciding on one. Below is a breakdown of the most common types of pensioner loans:
Centrelink Loans
As a Centrelink beneficiary, you might only be eligible for a few loans out there. Most lenders, including government and community financial assistance schemes, require that less than 50% of your income is from Centrelink.
However, the good news is that some lenders, like short-term lenders, banks, and credit unions, do not use this as a criterion. This means that even if more than 50% of your income is from Centrelink, they could still consider you for a loan. The maximum amount you can get with a Centrelink loan is $10,000.
Short Term Loans
Short term loans have a short repayment term and typically get processed the same day. You can get up to $2,000 or even $5,000 in some cases. The establishment fee could be up to 20%, and the monthly fee is capped at 4%. Because of the fees, short term loans are typically more expensive, so it's important to take extra care when applying for one.
Banks Loans
Many banks also offer loans for pensioners. However, each bank has its own set of requirements and may only accept specific types of pension payments. You may also be subject to a hard credit check and required to make a minimum income, which can go up to $40,000 p.a.
Bad Credit Loans for Pensioners
Unlike most traditional lenders, lenders of bad credit loans do not base their decision on your credit history. The lenders only do soft credit checks that don't affect your credit score. However, like short-term loans, these online loans for pensioners could also be expensive, as you may be paying higher establishment and monthly fees.
Eligibility Requirements for Loans for Pensioners in Australia
As a pensioner in Australia, your eligibility requirements to access loans can vary depending on the type of loan you're applying for and the lending platform you're working with. However, there are some general criteria that most lenders will consider:
- Age and Citizenship: You'll need to present a valid photo ID to show that you're an Australian citizen or permanent resident and are over the age of 18. Your Australian passport or open driver's licence will suffice.
- Bank: Bank details with at least a transaction history of 90 days will also be required.
- Contact Info: You must provide a valid phone number and email address.
- Income: You'll need to present proof of income detailing the amount and the date of your last payment. This will show that you receive payment regularly and can cover the loan repayment. This can also be your income from the Centrelink disability or age pension programme. Although it's not necessary, other sources of income you have, such as part-time work or investments, help too.
- Credit History: Another factor that lenders will consider is your credit history. While some lenders may offer small loans for pensioners with bad credit, strong credit history can help you qualify for lower interest rates and more favourable loan terms.
How Do You Apply for a Pensioner Loan?
If you are ever in need of quick cash as a pensioner and you need help figuring out how to go about it, apply at WeLoans. WeLoans is an online loan platform that connects you to various lenders that can suit your financial needs in a few easy steps.
Step 1: Complete the Form
Fill out our application form. You need to provide details such as your name, location, age, employment status, current income, and other information.
Step 2: Get Offers
Our wide array of lenders will assess your application and then send you offers.
Step 3: Sign the Agreement
Make sure you compare the offers and read the terms and conditions. Once you decide on the best offer, you need to sign the agreement with the lender.
Step 4: Receive Funds
The funds will typically reach your account in 24 hours.
Why Get Your Pensioner Loan with WeLoans?
With WeLoans, you don't have to go through the hassle of scouring the internet for lenders that accommodate you. We help you get in touch with our large network of trustworthy lending partners. These partners will offer you loans right away at competitive rates.
Even better, most of WeLoans' partnered lenders accept people with bad credit or those with more than 50% of their income coming from Centrelink. And you don't need to worry about a bad credit score, as our lenders only do soft credit checks that don't affect your credit scores.
Furthermore, our lenders are always available and send offers within a few hours of your application! Get started with your pensioner loan on WeLoans now and receive the funds in 24 hours!