Small Loans

In specific scenarios, you may find yourself in need of a small amount of cash. It could be for home renovation, car maintenance, vet bills, or more. Instead of spending the money you could need at one point for other necessities, you can apply for a small loan without hurting your bank account. 

In this guide, we’ll walk you through everything that you need to know about small loans and how to apply for one.

What Are Small Loans and How Can You Acquire One?

small loan

As their name implies, small loans for centrelink are a type of unsecured personal loans that are low in value. Typically, a small no credit settlement loan can be as low as $500 and as high as $5000. Anything higher than that gets us closer to the “large” loan territory.

Drawing from our experience, applying for a small trustworthy unsecured loan is usually easier than applying for a $100,000+ loan. You can even apply for these loans online, or at least that’s what most people who borrow small Australian loans do, anyway. 


There are numerous benefits of applying for a small loan for seniors, which can be summed up as follows:

  • Flexible payment terms
  • Gets approved quickly 
  • Doesn’t require an impressive credit score


Just like with other types of low income loans online, small loans aren’t risk-free. Here’s how a small loan can be quite a hassle:

  • Interest rates could be high if you have a bad credit score
  • The potential risk of damaging your credit score if you default on the loan
  • Late fees (if you frequently miss on the payments)
  • Some lenders charge early payment fees

Who Is Eligible?

small loans australia

Here are the general requirements needed to apply for small instant loans in Australia:

  • To be an Australian citizen or a permanent resident of Australia 
  • To be at least 18 years old
  • To have a regular source of income for the past 3 months
  • To have a decent credit score
  • A working email address and phone number

Our team discovered through using this product that, some lenders may have additional requirements, and in some cases, you might need to provide a bank statement.

You also need to submit some necessary information, like identification and personal details (name, marital status, job, and address). If a bank statement is needed, you’ll need to provide the lender with your online banking details. 

It’s also worth noting that you might have to provide myGov details if you’re a Centrelink customer and receive a monthly income. 

Small Loan with Bad Credit

small personal loans australia

After conducting experiments with it, if you have a bad credit history, you may have a more challenging time getting your personal loan for pensioners approved, even if it’s a small one. However, since such a loan is low in value, you should have no problem getting it approved, even if your credit history is nothing to brag about.

If you can provide enough proof that you have one income source or more and that you’re perfectly capable of making the payments on time, your chances of getting approved will significantly increase.

If all else fails, you can get a guarantor with a better credit score to co-sign the loan agreement with you. This provides more security to the lender because if you default on the loan, the guarantor will make the payments for you. It also protects you from drowning in debt.

On a side note, beware of lenders that offer customers guaranteed approval bond loans Brisbane. There’s no such thing as guaranteed approval because the government requires lenders to assess the borrower’s capability of repaying the loan within the set term. If a lender doesn’t go through these steps before approving your loan, chances are this is a loan shark. 

You can verify whether a lender can be trusted or not by checking if it’s registered with the Australian Securities and Investments Commission (ASIC).

Other Options 

small personal loan

While small personal loans for debt consolidation are relatively less risky than other types of loans, things can still go wrong, and you might miss a few payments, which will damage your credit score. 

A bad credit score will only make it harder for you to get some good loan deals in the future. Here are some of the alternatives that you can seek instead of applying for a loan:

  • Borrowing from a close friend or a family member
  • Using a credit card
  • Finding a side hustle to make some more cash
  • Borrowing from a credit union
  • If the money is for an emergency, you can check local charities and see if they can help

Final Thoughts

Emergency loans bad credit unemployed and small loans can be your life jacket in tight financial situations. However, it’d be best to think about how you’re going to make your payments on time before applying for the loan. 

You must plan it all out because even a small loan can damage your credit score if you make a habit of missing your payments. 

It’s also preferable to check whether there are any other options to get the money you need other than applying for payday loans Australia.

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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