Loans For Disability Pensioners

Receiving a disability pension and need funds? Apply today.

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Last updated on July 6th, 2022 at 04:42 pm by Thomas Perrotta

Get approved for a loan on the disability pension with Savvy

Life can throw you curveballs now and again, so it’s important to know what options you can turn to, even if you’re a disability pensioner. Fortunately, you can access the funds you need fast when you apply through Savvy. With understanding lending partners around the country, you can start the process with us and get approved and funded before you know it, so apply today and get the ball rolling on your application.

Can I get a small loan as a disability pensioner?

Yes – those earning a government benefit from Centrelink, such as the Disability Support Pension (DSP), are eligible to take out a small cash loan in Australia. This is because small loan financiers can approve applications from those who aren’t employed and don’t have a great credit score: their focus when assessing applications is more on what you can manage as a borrower. Part of the requirement is to receive a fixed income for an extended period, so disability pensioners can count their payments as up to 100% of their income when applying for a loan, given that it remains stable and consistent.

Of course, there are other factors which are considered when your application is assessed. Perhaps the most important is whether you can comfortably afford to pay off your loan over the term you’ve applied for. Additionally, if you have other payday loan debts outstanding, it’s unlikely you’ll be approved for finance. However, if you can show that you’re comfortable in managing your repayments and don’t present a significant risk of default, your loan application can be approved and you’ll be able to access the funds you need, which is crucial in the case of an emergency loan being required.

How do I apply for a disability pensioner cash loan?

Your loan application is 100% online, meaning it doesn’t matter whether you’re looking for a loan in Brisbane or a rural country town. Before you start your application, though, you’ll need to have the required information handy. This will allow your lender to properly assess your profile and financial situation so they can ultimately decide whether to approve your application. The information you’ll need includes:

  • Your contact information: your phone number and email address
  • Your ID: this can include your driver’s licence, Medicare card and passport in most cases
  • Your banking details: your lender will need access to 90 days’ worth of bank statements, which can be provided via a secure portal (these loans require no physical bank statements)
  • Your income details: how much you earn after tax
  • Your employment details: if you’re currently working, you’ll need to confirm your place of employment and time working there
  • Your living expenses: your address, whether you’re renting, boarding or paying off a mortgage and how much this costs you
  • Your loan purpose: you’ll have to confirm what you need your loan for

Once you’ve supplied all this information, you can fill out and submit your initial application. From there, you’ll receive an instant loan outcome which, if successful, will lead to your lender conducting a formal approval process, manually assessing your profile and credit history.

If they’re happy with all of this, you’ll be sent a loan contract to sign, which will confirm the main details of your agreement such as your repayments, loan term and fees. After you’ve signed and returned this, your lender can advance the loans to your account, which you can receive as soon as the same day you apply in most cases.

How much will I be able to borrow on my cash loan if I’m a disability pensioner?

Small loans range in size from $300 to $5,000 and can be repaid over as little as 16 days up to a maximum of two years (depending on how much you borrow). However, the amount you can be approved for will depend on your income and expenses. As mentioned, lenders want to be confident that you’re able to comfortably support your loan repayments, so the amount of cash you have free each week, fortnight or month will shape the size of the loan you’re approved for. As an example, if you had $200 of disposable income each fortnight (money available after expenses are subtracted from your pay), you wouldn’t be approved for a loan which comes with fortnightly repayments of $250.

There are ways you can go about making your loan debt more manageable. By opting for a longer term, your regular instalments would cost less overall. The same is true if you had any savings you could put towards whatever expense you need to be covered, as this would decrease the size of your loan and thus make it cheaper overall as a result. However, stretching out your term has the added effect of increasing your loan’s overall cost. The table below demonstrates how different loan terms can impact the cost of a $1,000 loan.

Loan term Establishment fee Monthly fee Monthly repayment Overall cost
12 months
$200
$40
$140
$1,680
Ten months
$200
$40
$160
$1,600
Eight months
$200
$40
$190
$1,520
Six months
$200
$40
$240
$1,440

*Establishment fee is calculated at 20% of the overall loan amount and is split evenly amongst repayments. Monthly fees are calculated at 4% of the overall loan amount and are charged each month.

Your bad credit loan questions answered

If I’m currently bankrupt, can I apply for a loan?

In a situation where you’re currently under a bankruptcy agreement, you’re unlikely to be approved for a small loan. However, there may be lenders in the market who could consider your application even whilst you’re bankrupt or under a Part IX debt agreement.

Am I able to count multiple Centrelink payments towards my cash loan?

Yes – provided your payments are stable and consistent, you can count multiple income streams towards your overall income on your loan application. Other payments which can count on your small loan application include:

  • Aged pension
  • Veterans’ Affairs pension
  • Single parent payments
  • Carer payments
  • Family Tax Benefits
Can I pay my cash loan off early?

Yes – instant cash loans come without any restrictions on how quickly they can be repaid, meaning you can pay your loan off well ahead of schedule if you’re in a position to do so. This is a great way of helping lower the cost of your loan, as paying it off two months prior to your agreed end date saves you on two rounds of ongoing fees.

Are there any loans available with no credit checks?

Reputable lenders will always conduct a credit check when assessing loan applications, as this forms part of their responsible lending requirements. They’re required to do their due diligence to determine whether you can afford to comfortably repay your loan. As such, there isn’t really such a thing as a cash loan with no credit check in Australia.