It’s very possible to get a personal loan as a low income earner in Australia. There are plenty of lenders that work with borrowers who don’t take home much from their job or other sources. However, as a low income earner, it may be more difficult to get approved compared to someone earning a higher income. That’s what makes knowing where to apply so crucial.
How can I get a personal loan with a low income?
Applying with the right lender is essential. You should always check the eligibility points before you apply, as this can tell you off the bat if you don’t qualify. First and foremost, you’ll need to meet your lender’s minimum income requirement, as well as the following key criteria:
- You must be 18 years of age or older
- You must be an Australian citizen, permanent resident or accepted visa holder
- You must meet your lender’s minimum credit score requirement
- You must be earning a stable income deposited into your bank account
- You mustn’t be bankrupt or under a Part IX debt agreement
- You must have a valid Australian phone number, bank account and email address
When you apply with Savvy, we’ll only match you with a lender whose requirements you meet. If you aren’t sure whether you’ll qualify, you can apply for a personal loan with us today and we’ll see if you tick all the boxes for one of our lenders. We won’t conduct a hard credit check during this process.
What is the minimum income required for personal loan approval?
The minimum income requirement on your loan depends on who you’re applying with, as different lenders will set different minimums. Savvy is partnered with lenders who can offer loans to those earning as little as over $480 per week (including accepted Centrelink benefits). This translates to more than $24,960 per year.
How much can I borrow on my personal loan as a low income earner?
In simple terms, you can borrow as much as you can comfortably afford to repay. As a low income earner, that means your personal loan borrowing power will probably be lower, given you’ll have less left over after expenses are deducted than someone making more money than you. You likely won’t be able to borrow the maximum of $75,000 for unsecured loans, as this’ll be reserved for those earning enough to comfortably manage their repayments.
However, there’s a range of other factors that can impact your borrowing power, including:
- Your credit score
- Your current assets (such as your home or car) and liabilities (such as other loan debts and credit card limits)
- Whether your personal loan has an asset as collateral (secured) or doesn’t (unsecured)
- Whether you have any dependants
- Whether you’re applying on your own or with your partner
If I receive Centrelink benefits, can they go towards my income?
Yes, it’s possible to get a personal loan while receiving Centrelink payments. We work with lenders who can accept a combination of both employment income and Centrelink benefits. However, the benefits that can be counted towards your income must be stable and consistent. These can include the following:
- Age Pension
- Carer Payment
- Child Care Subsidy
- Disability Support Pension
- Family Tax Benefits
- JobSeeker (in conjunction with wage income or Family Tax Benefits)
- Parenting Payment
- Service Pension
- Single Parent Payment
Payments such as ABSTUDY, Austudy and Youth Allowance aren’t accepted on their own or at all, as they’re conditional on factors like your age, study and employment status.
What are my other low income loan options?
The most common alternative to a personal loan for a low income earner is a small cash loan. These are loans of up to $5,000 that can be approved and funded quickly, as soon as the same day in many cases, and used however you like. This will be your main finance option if you’re earning less than the minimum required amount for a personal loan.
If you’re on a low income, these loans typically have more flexible borrowing criteria than personal loans. Lenders are often willing to look beyond issues such as certain black marks on your credit file as long as you can show that you’re in a position to repay your loan debt.
It’s worth noting, though, that the fees and interest on these loans are much higher than what you’d pay on a personal loan. You’ll have to pay an establishment fee of up to 20% of your loan amount (capped at $400) and monthly fees of up to 4% (or interest up to 48.00% p.a. on loans above $2,000).
Applying for your low income small loan with Savvy
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Fill out our online form
Share information about yourself and your finances, as well as how much you want to borrow.
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Receive an instant outcome
We’ll run your answers by our partnered lenders and, if there’s a match, you’ll receive conditional approval.
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Have your application assessed
From there, your lender will formally assess the application to see if a loan is right for you.
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Get approved and receive your cash
Once you’re approved, simply sign off and the funds can be sent straight to your bank account.
Why apply for a small loan with Savvy?
Common low income personal loan questions
Yes, you may qualify for a No Interest Loan (NIL) from Good Shepherd as a low income earner. These loans are available up to $3,000 for eligible borrowers and must be used for approved purposes, such as household furniture and appliances, car repairs, medical expenses and rental bonds. These loans are offered through not-for-profit organisations across Australia.
Interest rates can vary widely based on factors specific to your profile, such as your credit score, employment history, income and expenses, assets and liabilities and more. As a low income earner, you can expect your personal loan rate to be at least in the 10.00% p.a. and up range, even with a strong credit history, as of November 2025.
Yes, you can still be approved for a personal loan with bad credit. However, you’ll have fewer options to choose from and interest and fees will be higher for these loans. Lenders offering small loans are generally more focused on your ability to repay the loan than your credit score, but recent finance defaults (such as on other loans) could count you out.
If you receive Centrelink benefits, you can receive an advance on future payments. This isn’t really a loan, as it’s deducted from your next few instalments. This doesn’t apply to all benefits or under all circumstances, though, so it’s important to check what you can and can’t access early.
No, supplying an asset as security isn’t necessary for loan approval. However, opting for a secured personal loan could boost your chances of approval as a low income earner. Small cash loans don’t come with the option to add any collateral to the agreement.
Yes, you can apply for a personal loan jointly with your partner. Doing so could help your chances of approval, even if they’re also a low income earner, as the total income paying off the loan will be higher.
Although documentation requirements can vary depending on which lender you’re applying with, you’ll usually have to supply the following:
- Photo ID, such as a driver’s licence or passport
- Your last two consecutive payslips
- Information on your assets and liabilities
- 90 days of bank statements may be requested, but not always
- Centrelink income statements (if applicable)
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans up to $2,000, an APR does not apply. The cost of the loan is an establishment fee of up to 20% of your loan amount and a recurring monthly fee of up to 4% of your loan amount. Minimum term is 16 days and maximum term is 12 months. For example, a loan of $1,000 over three months with the maximum allowable fees will have an establishment fee of $200, monthly fee of $40 and fortnightly repayments of $188.57. The total amount repaid is $1,320.00 over seven fortnightly instalments.
For loans between $2,001 and $5,000, the APR is between 21.24% (minimum) and 48.00% (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 an establishment fee of up to $400 and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 12 months with an APR of 48.00% (comparison rate of 65.4962%) will have an establishment fee of $400 and fortnightly repayments of $165.44. The total amount repaid is $4,301.45 and total interest paid is $901.45 over 26 fortnightly instalments.
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.
Cash loan cost table:
| Small (SACC) loans | Medium (MACC) loans | |
|---|---|---|
| Minimum loan amount | $100 | $2,001 |
| Maximum loan amount | $2,000 | $5,000 |
| Minimum loan term | 16 days | 16 days |
| Maximum loan term | 12 months | 24 months |
| Repayment schedule | Weekly, fortnightly or monthly | Weekly, fortnightly or monthly |
| Establishment fee | Up to 20% of your loan amount | Up to $400 |
| Interest | N/A | Up to 48.00% p.a. |
| Monthly fee | Up to 4% of your loan amount | Included in the 48.00% p.a. maximum |
| Example loan |
$1,500 loan over six months repaid fortnightly |
$3,000 loan over 12 months repaid fortnightly |