Written by Many providers can offer small cash loans even if you’re unemployed. You can apply for sums up to $5,000 online, with repayment periods ranging from 16 days to 24 months depending on how much you borrow. So, if you need a financial boost, you can apply with Savvy today and receive an instant outcome in just 60 seconds!
Why apply for a small loan with Savvy?
No matter the time of day or week, you can complete your small loan application with us online.
You can receive an outcome in 60 seconds and, if successful, have your money sent in just one hour.
We're partnered with reputable Australian lenders to bring you greater peace of mind when applying for your small loan.
What Centrelink payments are accepted on a cash loan application?
There are several Centrelink payments that can be considered eligible income for a loan, including:
- Single Parent Payment
- Age Pension
- Child Care Benefit
- Mobility Allowance
- Centrelink Pensions
- Disability Support Pension
- Carer Payment
- Totally & Permanently Incapacitated Pension (T&PI)
- Partnered Parent Payment
Centrelink payments not included:
- Austudy
- ABSTUDY
- JobSeeker Payment*
- Youth Allowance
*Can be accepted when combined with Family Tax Benefits (A & B) or as low income supplement.
The reason these three benefits don’t qualify is because they’re based on factors like your age, employment and study status, all of which can change at short notice.
How much will a cash loan cost me?
Fee structures differ slightly for amounts $2,000 and under versus $2,001 to $5,000.
On amounts up to $2,000, there is an establishment fee worth 20% of the loan amount, while repayments are capped at 4%. For the larger amounts, you’ll pay a maximum of $400 in set up fees and will be charged a maximum of 48% p.a. in interest.
Let’s look at an example:
Sam has been unemployed on and off for four months and is receiving Centrelink benefits as well as picking up the odd shift at a café. Their relative has passed away and they want to attend the funeral overseas. Problem is, while they have some savings in the bank, they don’t want to spend all of it in one hit.
Let’s look at what some different loan amounts will cost them in terms of their fees:
| Loan amount | Loan term | Establishment fee | Monthly fee/interest | Fortnightly repayment | Total cost |
|---|---|---|---|---|---|
| $900 | Nine months | $180 | $36 | $71 | $1,404 |
| $1,400 | Nine months | $280 | $56 | $110 | $2,184 |
| $1,900 | Nine months | $380 | $76 | $149 | $2,964 |
| $2,400 | Nine months | $400 | 48.00% p.a. | $172 | 3,360 |
As you can see, the amount Sam will end up paying depends on how much they borrow. For example, putting in $500 more of their own money and going with a $900 loan instead of a $1,400 loan would end up saving them close to $300 in fees.
How can I make sure I don’t over-borrow?
When it comes to deciding on a loan amount, it’s essential not to over-borrow. Before you apply for any loan, it’s a great idea to sit down and work everything out on paper.
You should:
- Figure out how loan payments will fit around regular monthly expenses.
- Take day-to-day living expenses and bills into account.
- Allow for the change in your cash flow while you pay your loan back.
It’s worth noting, however, that lenders won’t approve you for more than you can afford. If they believe you won’t be able to manage $3,000 but still meet their criteria, they’ll come back to you with an offer for $2,000 instead, for instance.
It’s also important not to under-borrow – it isn’t helpful to take out too many loans in any set period. Every time you apply for a loan, lenders check your credit report and leave a visible impression. Loan providers don’t like to see excessive cash loan applications and they can impact your chances of approval for future loans as a result. Responsible lenders also won’t approve too many loans all at once.
Can I borrow from the government when I’m out of work?
Centrelink or Services Australia offer Advance Payments for a range of benefit recipients. This is part of your income support payment or Family Tax Benefit (Part A). It will then need to be repaid out of future payments.
Criteria:
- Must be receiving the benefit for a minimum of three months
- Not have another existing debt
- Not still be repaying another advance from more than 12 months ago
Advances are available after three months for recipients of:
- Age Pension
- JobSeeker Payment
- Youth Allowance for job seekers
- Carer Payment
- Disability Support Pension
- Farm Household Allowance
Apply at any time if receiving:
- Austudy
- ABSTUDY Living Allowance
- Mobility Allowance
- Youth Allowance for students
- Family Tax Benefit Part A
Here’s how much you can advance for different benefits through Centrelink (correct as of October 2024):
| Benefit | Advanced amount | Frequency |
|---|---|---|
| Family Tax Benefit Part A | Regular advance up to 3.75% of standard rate for one child under 13 One-off advance up to 7.5% of annual rate Total advanced can’t exceed $1,348.81 | One regular advance at a time, paid every 26 weeks One-off advances available at any time |
| Age Pension, Disability Support Pension or Carer Payment | Between $542.75 and $1,628.25 for singles Between $409.10 and $1,227.30 if you’re in a couple | Within a six-month or 13-fortnight period, you can get: |
| ABSTUDY, Austudy, JobSeeker, Parenting Payment or Youth Allowance for job seekers and students | Between $250 and $500 | Paid across two instalments or all at once |
| Farm Household Allowance | Between $250 and $500 | Paid all at once |
| Special Employment Advance (for recipients of Austudy, Carer Payment, JobSeeker, Parenting Payment or Youth Allowance) | Between $50 and $500 | Receiving payment for three months. Can apply if: |
| Mobility Allowance | Equal to 13 payments | Once per year (12-month period) |
Frequently asked questions about instant cash loans while unemployed
There are no reputable lenders that can guarantee approving a loan – there's always an application process. If a lender claims to offer guaranteed same-day approval, you might be better off walking away – they might not be legit.
One of the best things you can do is to make sure your finances are in order – debts paid off, bills paid on time, and credit cards under control. This will also begin to improve your credit score over time. So practically speaking, putting together a budget (if you haven’t done so already) is a great way to get started. Work out your expenses, make sure you’re setting money aside for them, and don’t spend more than you can afford.
Different agencies use slightly different scales here, and lenders very in what they regard as “bad” credit. Your credit rating will normally be a number somewhere between 300 and 850 – the higher, the better. Broadly speaking, numbers above 670 shouldn't have much trouble getting a loan. Ratings below 670 might need to choose their lender carefully, with ratings under 580 more suited to bad credit loans. Those numbers are very general, though. It’s important to note that even with a bad credit score you can be approved for a same-day short-term loan.
Lenders will need you to have some kind of income – just so you’re able to pay off the money you borrow. So if you’re unemployed and have no income at all, you’re not going to get a loan approved. But if you just have a different source of income while you’re unemployed (like a payment from a trust fund, or royalties from music) then there will still be lenders willing to help – as long as you can show evidence of that income.
There are a few things that can do this, and some are more obvious than others. Not paying your debts is a big one – and this includes repayments on borrowed money and outstanding bills (that one catches a lot of people out). Using too much credit also doesn’t help – so try to keep your credit card limits low, and don’t have more than 30% of your credit limit owing where possible. Applying for loans also puts a dent in your credit rating – so applying for multiple loans at once is a bad idea.
In Australia, there are financial assistance options available for those who are unemployed and on government benefits. These include small interest-free loans (up to $1,500), and advances on your Centrelink payments. There are some criteria to meet, and restrictions around what the money can be used for. But if you’re eligible for one of these, they can be pretty helpful. You can find out more about those options on the Centrelink website.
Small loans to suit your circumstances
Helpful guides on small loans
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
