Emergency Loan Centrelink

There are always hiccups along the way, but some of these obstacles are unpredictable and just catch you off guard. 

You may have already planned this month’s budget and made sure everything is in order. But there’s no way you could have predicted your car tyre is going to need a replacement or a cavity has decided to worm its way in one of your teeth today. 

That’s when emergency loans bad credit direct lenders come into play. They’re designed to provide you with a short-term solution for your financial hiccup until you’re back on your feet again. But will the fact that you receive any form of Centrelink payment get in your way of acquiring an emergency loan? Continue reading! 

Emergency Loans – Explained

centrelink emergency loan

As indicated by our tests, emergency loans are the financial cushions you can depend on when faced with any emergency, whether it’s an urgent situation like sudden hospital expenses or something mild like a birthday gift that needs to be bought at the moment. 

Typically, they’re emergency loans bad credit, ranging from $50 to $1,000, that you can apply for and receive on the same day to bridge the gap in your finances as soon as possible. Yet, they can be as large as $10,000, depending on your type of emergency.

You can seek these loans from banks, credit unions, online lenders or even the government, which takes us to the next question. 

Can I Apply for an Emergency Loan If I Receive Centrelink Payments?

centrelink loan assistance

Yes! You can always apply for a Centrelink loan assistance to cover the expenses of whatever life throws at you. If you receive any type of government assistance payment, you can file for a loan or ask for an advance payment through the Department of Human Services.

Our team discovered through using this product that, the good thing about Centrelink loans is that, in some cases, they can be repaid directly from your future benefits without interest fees or charges, so they won’t add tons to your financial burden. You can apply for emergency loans online today through Perfect Payday.

However, the catch is that they take time to get approved, which doesn’t go well with the fact that you need the cash immediately. Moreover, there’s a limit on the amount of money you can take out. 

The government will assess your circumstances and status and lend you the amount of cash they think you need and can pay back, so you don’t have much choice here. 

Not to mention that the interest-free emergency cash loans in one hour we mentioned are limited to people with Health Care Cards and Pensioner Concession Cards, meaning that if you don’t belong to these two categories, you’ll be obliged to pay interest. 

A more practical way to lay your hands on an emergency loan is to seek it from lenders who accept customers receiving government benefits. Some online loan providers are glad to grant you emergency funds even if you’re enrolled in one of Centrelink’s income programs.

Most of the time, they’d require that you’ve been receiving Centrelink funds for at least 90 days before you file for a loan. Also, you’ll have to provide proof that you have a source of income other than Centrelink. It won’t matter if it’s a freelance or a part-time job as long as it increases your monthly income. 

Of course, they’ll check the usual things as well, such as your credit score and financial history, to make sure you’ll be able to pay back on time. 

Does that mean you won’t be deemed eligible if you have a bad credit score or no job? No, you can still be approved for an emergency loan, but it won’t be as easy. It’ll require some shopping around for lenders who accept these conditions. 

Just remember that applying for multiple urgent loans at once won’t do good to your credit score, so before applying, make sure that your chances of getting approved by this lender are high enough. 

Eligibility Criteria for Centrelink Emergency Loan

cash loans for people on newstart allowance

Emergency loans are accessible to all Aussies, so the eligibility criteria aren’t that hard. Typically, you should meet the basic requirements, which are:

  • To be an Australian citizen or at least a permanent resident.
  • To have an Australian telephone number and address. 
  • To be of 18 years of age or older.
  • To have no more than two loans in your name currently.
  • To have a regular income that makes up more than 50% of your Centrelink payment.
  • To provide proof that the repayments won’t exceed 20% of your gross earnings.

Yet, that’s not all. The type of Centrelink payment you receive can be a deciding factor as well. Centrelink benefits that are considered a source of income qualifies you for an emergency loan with no additional employment evidence. These include Carers Allowances, Child Support Payments, Overseas Pensions, and JobSeeker Allowances.

Other Centrelink benefits that qualify you for a loan but with proof of another source of income are: Family Tax Benefits, Parenting Payments, Disability Pensions, Foster Care Allowances, and Age Pensions

Unfortunately, those who are enrolled in an Austudy or Youth Allowance program will find it hard to be approved for an emergency loan.

Emergency Loan Centrelink – Costs 

emergency loans centrelink

After trying out this product, emergency loans while receiving Centrelink payments are treated the same way as bond loans for bad credit. The interest rates are the same and are determined based on your eligibility and credit score. Of course, there will be other charges, such as:

  • Establishment fees: This is the application fee you get charged at the beginning of the loan before receiving a check or receiving the fund in your bank account.
  • Late repayment fees: This is a penalty fee you pay if you fail to pay the instalment within its due date. 
  • Early payout fees: Contrary to the previous one, this is a fee you’re charged if you pay your debt earlier than agreed on since that means you’re breaking the fixed-rate loan contract.

That’s why it’s always a good idea to read between the lines and make sure you’re fully aware of all the terms and conditions to avoid being hit with a fee without seeing it coming. 


Sudden bills and unforeseeable payments have a habit of coming out of nowhere, so you should always prepare a backup plan. An emergency loan is always a good solution, provided that you’re not adding to your future financial burden to the point that you default to repay.

If you’re on a Centrelink payment, you’re probably receiving low income, so be reasonable with the amount of money you ask for. Make sure to take out a loan that will take the pressure off, not add to it. Apply for emergency cash loans unemployed no more hassle Australia today from Perfect Payday.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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