White Goods Loan for Centrelink

Buying a washing machine, refrigerator, dryer, or any of the domestic electrical appliances typically coming in white isn’t exactly so cheap. 

A lot of people can’t afford the lump-sum amount, and that’s why they opt for instalments. But what if you receive Centrelink payments? Can you use them to repay the white goods loan? Keep on reading to know all the details.

No Interest Loan Scheme (NILS)

centrelink white goods loan

The No Interest Loan Scheme is a type of loan facilitated by the Australian government as a way to give people access to money that tides them over without having to pay any fees of interest on their beneficiary loans.

Of course, it is granted to those who receive income from Centrelink or are already on a low income as a way of providing a safe, fair, and affordable means of handling expenses.

This scheme provides an amount ranging between $300 and up to $1,500 to cover essential goods and services when applying for bad credit cash loans guaranteed approval centrelink, with repayments of the lump-sum amount exclusively over the period of 12 months and up to 18 months. Another incredible facilitation is that this loan scheme requires no credit check.

What Else Can I Use NILS For?

white goods loan centrelink

NILS is mainly targeted at those who want to:

  • Buy essential items, such as white goods, including washing machines and refrigerators
  • Buy furniture or computers
  • Pay for items associated with health problems, including asthma pumps and wheelchairs
  • Pay for car repair, especially in areas with little to no public transportation

However, you can’t use it if you want to:

  • Simply get access to cash
  • Pay debts or make a debt consolidation loan
  • Pay bills, including paying rent
  • Go on holiday

What Are the Eligibility Criteria for NILS?

white goods loan

If you want to apply for a NILS loan, the following has to apply to you:

  • Having a pension card or a Centrelink health-care card or earn under $45,000 per year
  • Having the same address for at least 3 months prior to the date on which you apply
  • Providing proof that you will be able to repay the loan within the specified loan term

Generally, the NILS loan is targeted at those who earn low incomes, those who live, study, or work in NILS regions (Sutherland or be an MTC client, Inner West, City or St. George), and those who have disposable $20 – $30 biweekly to afford the loan repayments.

How Can I Apply?

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To apply for a NILS loan, you’ll need to locate your local NILS provider, which can be found in more than 650 locations all over Australia with more than 250 local community organisations.

Then, you have to call the provider to get help with the application process as well as figure out how much you can borrow according to how much you can afford to repay. 

To make this process easier for yourself and for the representative, you should be prepared with your ID as well as documents that illustrate your financial situation, like a bank statement or receipts of Centrelink payments over the past 90 days and the most recent bills.

Instead of going there or calling, you can fill out an online form, which will help you learn whether or not you’re eligible for the centrelink youth allowance loan. The online form comes with all the instructions that you need to navigate the application process, and you’ll get an arrangement for your interview after you’re done with it.

How Do White Goods Loans for Centrelink Work?

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After you apply and your request is accepted, you’ll receive an influx ranging between $300 and $1,500, depending on your financial situation and your income/expenses ratio. 

Then, you can use that money to afford any of the white goods you need, including water heaters, dryers, washing machines, and fridges. It’s highly recommended and advisable that you opt for ones labeled as water and energy-efficient to minimise bills.

Not only that, but you can also use the money to buy other items, such as ovens, computers, furniture, or even a TV when receiving loans for single mothers on centrelink

Also, ask about your ability to use the crisis centrelink loanto cover various other expenses, including car expenses, education expenses, or medical treatment expenses.

However, bear in mind that you can’t use the NILS loan as a cash advance to repay debt or pay essential living expenses such as food, clothing, rent, or bills.

Most of the time, you’ll get a personalised repayment plan which works for your circumstances, so make sure you provide all your receipts and that you are transparent about all your costs of living.

After you’re done with your interview, provide all the documents necessary, and finish your application, it will be assessed within 2 to 4 days. Once your request is approved, the money will be transferred directly to the entity that supplies your product.

Then, you’ll be obligated to repay the loan over a period of 12 to 18 months, but without any interest charges or fees.

And the best part is that NILS is basically recycling small business loans, so, as you pay off your own loan, you’ll be helping someone else get theirs. 

What Are the Repayment Schemes?

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How much you have to have to repay each month depends on how long your loan term is and how much you’ve borrowed.

So, for example, a $500 loan can be paid in $39/month over the period of 6 months or $20/month for 12 months.

Alternatively, a $1,000 loan can be paid in $77/month for 6 months or $39/month over the period of 12 months.

So, as you see, because this is an interest-free and charge-free loan, you’ll be getting double the amount of money whenever you double the loan term, and that’s why it’s capped at $1,500.

Can the Loan Be Taken on Behalf of a Third Party?

centrelink laptop loan

No. The person taking out the NILS loan has to be the person that contacts the concerned entities. 

However, you can take out the loan and use the funds to help someone else, though you’ll still be the one responsible for paying it back in full and on time.

Final Thoughts

Receiving low income doesn’t mean that you can’t afford a fridge or washing machine. 

With Centrelink white goods loans or NILS car loans on centrelink payments, the purchase process will be facilitated, and you can repay only the principal within 12 to 18 months.

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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