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Emergency Cash Loans For Unemployed Australian Citizens

A lot of people worry about what will happen if they lose their job. Unfortunately, the unlucky few who find themselves without work often have to deal with debt problems, but there are some solutions for this problem. Emergency cash loans can provide the funds necessary to pay off overdue bills and other expenses when you’re in between jobs or need extra money quickly. 

These loans come at a lower interest rate than traditional loans for unemployed Australian citizens because it is not easy for them to get credit through traditional channels like banks and credit card companies. The best part about emergency cash loans is that you can apply online in just minutes!

There are many reasons to get emergency cash loans for unemployed Aussie citizens. Unfortunately, if you’re in this position, choices online can be difficult to find, especially from trusted sources. 

What are Cash Loans for the Unemployed?

Loans for unemployed people are short term, unsecured loans that can be applied for when applicants are out of work. Whilst most short term loan lenders require an applicant to be in full or part-time employment, small loans for the unemployed are available from specialist lenders online. To apply for this type of loan, someone who is currently unemployed is required to prove they have income from other sources. Some common forms of income that direct lenders can accept include:

  • Payments received from Centrelink
  • Earnings made by self-employed individuals
  • Dividends earned on shareholdings, or similar income sources

In each case, lenders providing 24/7 loans for unemployed people require applicants to provide extensive financial details, including their most recent bank account or wealth statements. This is to assess an applicants’ affordability for the loan. If they cannot determine the affordability is there, they will not be able to approve the loan.

Can you get a loan if you’re unemployed?

An unemployed person can apply for a loan but still need to earn an eligible income or have suitable income-earning assets to repay the loan. Acceptable forms of income may include Centrelink payments, self-employed earnings or regular deposits in an account from shares or something similar. However, only some lenders will consider unemployed applicants for a loan, and you’ll still need to meet the eligibility criteria to receive approval. Applicants may be required to provide bank statements and financial documents to verify whether or not they can repay the loan.

What eligibility must requirements be met for an unemployed loan?

The specific eligibility criteria will vary between loans, but lenders will typically consider the following when someone applies:

  • Ability to repay the loan. When reviewing applicants, lenders will consider whether or not applicants can afford to manage repayments. If an unemployed applicant is looking to borrow a small amount and their income and expenses prove that they can easily manage the ongoing repayments, they may be eligible. However, if they’re looking to borrow a large amount of money that will be difficult to repay considering their current situation, they’re less likely to be approved.
  • Financial situation and credit history. Lenders consider credit history, credit score and financial situation when assessing an application. For example, people who are repaying other short term loans, currently in bankruptcy or under a Part 9 Debt Agreement may not be approved. Make sure to check the specific lender’s eligibility criteria before applying.
  • Eligible income. Some lenders will approve applicants who are receiving eligible government payments. For example, people receiving certain Centrelink allowances, such as a pension or parenting payments, may be able to include this as a percentage of their eligible income. For example, you may only be approved if no more than 50% of your income comes from Centrelink payments. Some payments, such as Newstart or Disability Support Pension (DSP), may not be accepted by some lenders. Again, check the lender’s eligibility criteria before applying.
  • Assets. If an applicant owns assets such as a vehicle or has equity in a property, the application may have a greater chance of being approved. This is because the lender may use this as security for the loan.

Eligibility Criteria to Apply for Loans for Unemployed in Australia

Each lender will have its own eligibility criteria for 24/7 loans for unemployed applicants, but in general, will require the following conditions to be met. Applicants for unemployed loans must:

  • Be over the age of 18
  • Be a citizen or hold a PR status in Australia
  • Prove ability to make timely repayments on the loan
  • Show an acceptable financial and credit history
  • Have enough income coming from eligible sources
  • Show sufficient assets to prove affordability

If an applicant has sufficient income to qualify for loans for the unemployed, this income must come from eligible sources. Many lenders do not accept applicants, with more than 50% of their regular income coming in from payments received through Centrelink. Similarly, some lenders do not allow payments received under the Newstart program or Disability Support Pension to be considered as a regular income. Lenders may also require an applicant of small loans for the unemployed to have a regular weekly income of over $300.

An applicant has to prove they can make timely repayments that they can afford. This protects both the lender and the borrower from entering into a loan agreement that has a higher risk of default. As part of the decision-making process, your credit history will be checked alongside your income. Those with a bad credit history or in difficult financial circumstances may not be eligible to apply or be successful with their application. Every lender has its own threshold, so we’ll help match your circumstances and details with a suitable lender offer.

Frequently Asked Questions About Loan For Unemployed 

Who can help me with money urgently, Australia?

You don’t have to go it alone. In an emergency, there are services to help you with food, housing and bills, as well as emotional support. If you don’t know where to start, call the free National Debt Helpline on 1800 007 007. The helpline is open Monday to Friday, 9:30 am to 4:30 pm.

Can I borrow money if I am unemployed?

But, can you get a loan if you are unemployed and have no regular income? Yes, you can get a loan even without a job. Many lenders in India offer loans to applicants who do not have a job. But, of course, the terms and conditions for such loans are different from loans to the loans provided to income earners.

Am I Guaranteed Approval for Fast Cash Loans for Unemployed?

No lender can guarantee loan approval before fully assessing an applicant’s income and credit history. You may find other lenders online offering guaranteed loans for the unemployed, but they are unlikely to be a trusted source to apply through and may charge hidden fees for the privilege. Applying through us means you will only be connected with trusted lenders regulated by the ASIC (Australia Securities & Investments Commission), with our credit representative number being 526847. Using trusted lenders ensures your application is assessed fairly and the necessary credit checks and assessments are performed before approving a loan.

What types of loans are available to unemployed applicants?

The most prominent types of loans accessible for unemployed people online are personal and payday loans. Payday loans are a short-term option that is usually given out for a loan term of under one year, capped at approximately $2,000 that can charge a high-interest rate. These loans often must be repaid, with interest and other charges, over a short time span. Those who are unemployed should only choose an amount they are comfortable repaying with their current income level.

If you’re unemployed and receiving Centrelink payments, there are a few loan options available to you:

  • No Interest Loans Scheme (NILS). NILS, provided by Good Shepherd Microfinance, is a loan scheme that offers credit to families and individuals on low incomes. These interest-free loans can be used to pay for essential household items such as refrigerators or utility bills, and car repairs. They can also be used for some medical and dental services. The application process for these loans and the eligibility criteria involved are not stringent; however, applicants must prove that they need these loans to be granted them.
  • StepUP Loan. Good Shepherd Microfinance, in partnership with NAB, also offers StepUP Loans that vary between $800 and $3,000 at low rates starting from 5.99% p.a. Eligible borrowers will be required to have a Health Care or Pension Card and receive Family Tax Benefit A, as well as having resided in their current premises for more than three months.
  • Joint applications, guarantors and cosigners. Unemployed applicants can consider applying with another person, such as a partner, relative or friend, to boost their eligibility. Some lenders accept joint applications, and brands such as Buddy Money encourage people to apply with a guarantor. Guarantors are generally required to be homeowners with good credit scores and take responsibility for the loan if the borrower defaults on their repayments.
  • Overdraft. An overdraft is linked to a bank account and allows users to draw up to and include a certain limit, usually if there’s an emergency. If you have a good credit history and a positive and longstanding relationship with your financial institution, you may qualify for an overdraft, even if you are currently unemployed.
  • Personal loans.  Personal loans are usually cheaper compared to payday options. However, they can come with stricter eligibility criteria. In addition to requiring borrowers to have a good credit history, personal loan providers can also consider a borrower’s assets while making a lending decision.

Loans for the unemployed in Australia can be categorised as small, medium, or large:

  • Small loans – under $2,000 for a maximum period of one year. These loans are usually unsecured, meaning they do not require any collateral.
  • Medium loans – between $2,000 to $5,000, usually for a loan term of up to 2 years, depending upon the lender. Some form of collateral may be required with medium loans.
  • Large loans – amounts above $5,000, usually to be repaid within 2 years.

Things to consider when making a loan application while unemployed

There are several factors to take into consideration when making a loan application if you are currently unemployed. These include:

  • Repayments. First and foremost, it’s important to consider whether or not you can afford to meet your loan repayments. While lenders are subject to responsible lending obligations, these obligations can change over time, sometimes making it easier or more difficult to borrow. It is your responsibility to ensure that you can afford to repay any credit that you borrow within the repayment period. If you’re unsure what you can afford on your current budget, you can use our loan calculator to assist you.
  • Credit history. If you have a strong credit history, you may still be eligible for a loan, even if you are unemployed. However, if you have poor credit or a bad credit score, it may be worth either spending some time improving it or waiting until you have a form of regular income before applying for a loan.
  • Being offered a smaller loan amount. Loan providers will generally consider your income as a factor towards your eligibility for a loan. If you don’t currently have a regular income, you may be offered a lower loan amount than you actually need if you’re approved. This can defeat the purpose of the loan if you can’t borrow enough to pay for what you need to. Avoid signing a loan contract unless you are sure that the loan in question will meet your needs to save you from paying unnecessary fees and interest.
  • Higher interest rates. If you’re unemployed, you will most likely be offered a higher interest rate than applicants with regular employment. Borrowers without a consistent income pose a higher risk to lenders, as they are more likely to default on the loan. To mitigate this risk, lenders will charge a higher interest rate.
  • Over-applying. Loan applications, and rejections, are recorded on your credit report and affect your score. Therefore, it’s unwise to submit multiple loan applications. If a lender rejects you, it’s a good idea to seek professional financial advice before submitting another application.

Choose your loan wisely. Emergency cash loans can be a quick and easy way to get out of debt, but they’re not always the best option for everyone. If you’ve been unemployed for over six months or have had trouble making ends meet in general, then this may be an appropriate solution for you right now. 

But if you don’t fit these criteria – even if it’s only been three months since your last job loss- we encourage you to explore other options like refinancing credit card debt or consolidating payday loans before turning to emergency cash loans as a stopgap measure. It’s important that people understand what their choices are when looking at different forms of financial assistance; with so many available resources on the internet today, 

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