Centrelink Loans: Your Options and What to Check First

The contents provided on this page are for informational purposes only and do not constitute financial advice. Consider your personal circumstances and objectives before making any financial decisions.

When money's tight and a bill can't wait, it's natural to start searching for Centrelink loans. Before you apply anywhere, it's worth knowing two things: there are interest-free options built for people on Centrelink, and not every lender can help if most of your income comes from Centrelink. This guide covers both, so you can pick the option that costs you the least.

Can you get a loan on Centrelink?

Sometimes. It depends on the lender, the type of loan and how much of your income comes from Centrelink. Some lenders count Centrelink payments as income, while others need to see income from work as well. Either way, every licensed lender has to check that you can afford the repayments alongside your rent, bills and other costs. Approval is never guaranteed.

Your options at a glance

• Centrelink advance payment: part of your income support payment or Family Tax Benefit (Part A), paid early, with no interest. For people already receiving an eligible payment.
• No Interest Loan (NILs): up to $2,000 for essentials, or up to $3,000 for things like a rental bond, with no interest or fees. For Health Care Card or Pensioner Card holders, and other low-income earners.
• Beforepay Pay Advance: $50 to $2,000^†, with a 5% setup fee plus interest of up to 24% p.a. For people who are employed with a regular wage and get less than 51% of their income from Centrelink.
• Payday loans: up to $2,000, usually with a 20% establishment fee plus a 4% monthly fee. Worth comparing carefully, as costs add up quickly.

Centrelink advance payments

If you get an income support payment or Family Tax Benefit (Part A), you may be able to get part of it early as an advance payment. You pay it back out of your future Centrelink payments, so it's worth working out how a smaller payment will fit your budget for the next few months. Check your eligibility and apply through myGov.

No Interest Loans (NILs)

No Interest Loans are offered through local community organisations. You can borrow up to $2,000 for essentials like a fridge, a washing machine or car repairs, or up to $3,000 for specific costs such as a bond on a new rental. There's no interest and no fees, and repayments are set at an amount you can afford over up to 24 months. You may qualify if you hold a Health Care Card or Pensioner Card, or earn under $70,000 a year as a single (or under $100,000 as a couple or with dependants).

Payday loans on Centrelink: what to watch

Payday loans (small amount credit contracts) are legal and regulated, and the fees are capped at a 20% establishment fee plus a 4% monthly fee. On a $500 loan held for two months, that's $140 in fees. Repayments are also limited to 10% of your after-tax income. If you're on Centrelink, those fees take a big bite out of a fixed income, so check the free options above first. See how payday loans compare with a pay advance.

Loans on Centrelink with bad credit

A low credit score doesn't automatically rule you out with every lender, but it can narrow your options and push up the cost. Our guide to getting a loan on Centrelink with bad credit covers what lenders look at and the warning signs to avoid.

What lenders look at

• Your income: how much you get, how regularly, and where it comes from
• Your spending: rent, bills, groceries and other regular costs
• Your existing debts: other loans, buy now pay later and credit cards
• Your bank history: missed payments, dishonours and overdrawn balances

Where Beforepay fits

A Beforepay Pay Advance lets you borrow $50 to $2,000^† with no credit checks, repaid in up to 4 instalments lined up with your pay. To be eligible, you need to:

• Be 18 or older and an Australian resident
• Have a current Australian driver's licence, passport or Medicare card
• Be employed and receive a regular wage
• Get less than 51% of your income from Centrelink
• Have no other active Beforepay loans

If most of your income comes from Centrelink, we won't be able to help, and the advance payment or a No Interest Loan will usually be the better option anyway. See our full eligibility criteria.

Red flags to avoid

• Promises of guaranteed approval or "no checks at all"
• Fees or interest well above the caps above
• Pressure to borrow more than you asked for
• Lenders that don't hold an Australian credit licence

Free help

If you're behind on bills or juggling debts, the National Debt Helpline offers free, confidential financial counselling on 1800 007 007. You can also see our list of financial support and resources and our guide to budgeting on Centrelink.

^† Approved loan amounts are subject to Beforepay's lending criteria and verification requirements.

This information is general in nature and doesn't take into account your personal circumstances. It isn't financial advice. Approval is not guaranteed. Terms of Service and eligibility criteria apply.