Can I borrow money if I'm on Centrelink?
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James RileyLast updated January 13, 2026Fact checked
Borrowing money while on Centrelink
The short answer is yes — you can borrow money if you’re on Centrelink. But there are things to consider first. Many people receiving Centrelink payments find themselves needing to borrow for unexpected bills or emergencies, and it’s important to approach it carefully.
Consider your repayment capacity
Before borrowing money, look at your income and expenses to determine whether you can afford the repayments. If you’re on Centrelink, your income may be lower than a full-time worker’s, which can make repayments more challenging — particularly if you’re already struggling to make ends meet. Weigh your financial situation honestly before taking out a loan.
Tips for borrowing money on Centrelink
- 1
Only borrow what you need
Taking out a larger loan than necessary can lead to financial difficulties down the road.
- 2
Shop around
Don’t take the first loan you’re offered. Compare options to find the lowest interest rate and fees.
- 3
Read the fine print
Understand the terms — interest rate, fees and repayment schedule. If unsure, contact our team for clarification.
- 4
Consider alternatives
You may be able to negotiate a payment plan with creditors or access financial counselling before borrowing.
- 5
Seek help if you need it
If you’re struggling with debt, services like the National Debt Helpline and Financial Counselling Australia can help.
Types of loans available to Centrelink recipients
Centrelink advance payments
If you receive certain Centrelink payments, you may be eligible for an advance — a lump sum repaid over time through your regular Centrelink payments, with no interest.
Personal and payday loans
CashPal offers personal loans to Centrelink recipients — these can carry higher rates than loans for employed borrowers, so compare your options. Payday loans cover unexpected expenses but come with high fees, so treat them as a last resort.
NILS and fast options
The No Interest Loans Scheme provides interest-free loans to people on low incomes with a Health Care or Pension Card. And 1 hour loans from CashPal streamline the process when speed matters.
CashPal provides loans for Centrelink beneficiaries
It’s possible to borrow from CashPal while on Centrelink — just consider your financial situation carefully first. Only borrow what you need and can afford to repay, compare options to find the lowest rate and fees, and seek help early if you’re struggling with debt so you can manage your finances for the long term.
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- MJ
- KZ