Personal Finance

Car Loans for People on Centrelink or Low Income

Have you applied to the banks and been knocked back? Have you looked for other options online to only find untrustworthy websites with no real information?

If you are on Centrelink or have a low income, options for a car loan may be limited for a number of reasons. If Centrelink is your only source of income, finding a loan provider may be difficult, but there are genuine options. Generally people with a steady source of income (even if part-time) plus Centrelink payments have a better chance of qualifying.

If you find advertisements or websites that state; bad credit okay, bankruptcy okay, no credit check, guaranteed approval, etc… Be very wary of these operations as there will be some type of catch. Often times it’s a loan with extremely poor terms or worst yet, you may be buying a lemon off of a used car lot in addition to the horrible terms.

Below are a range of options for car loans for people receiving Centrelink payments or on a low income. (Make sure you do your due diligence and never sign or get locked into a deal that you are not comfortable in and understand all the terms completely).


Non-Bank Lenders – These types of operations can either specialise in vehicle financing or provide a range of loan types. In certain instances dealerships may have their own funding lines as well. As with anything, some are better than others and as mentioned above; make sure you understand the terms before signing.

Banks – If you haven’t tried the banks or building societies, try them first. Although you may not qualify for a mainstream loan, many banks have certain community based partnerships where they provide specialised loans for various purchases; including car loans.

In addition, the banks change and provide different types of loan products to low income earners, pensioners, etc at different times. It’s always worth checking.

Good Shepard Microfinance – This is an incredible program that offers small interest free microloans for various needs. There are essentially 2 products they provide.

NILS (No Interest Loan Scheme) – Loan amounts range from $800 – $1200 and are geared more towards household needs.

StepUp – Loan amounts range from $800 – $3000 and are for personal, domestic or household needs. Visit for detailed information.

To learn about other loan options for people on Centrelink visit this article. Another article that may be of interest is help me with money.

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  1. Car Loan
    August 22, 2012 at 10:07 pm — Reply

    NIce blog, thanks for sharing. 🙂

  2. Andrew
    November 10, 2018 at 2:56 am — Reply

    Hello I’m interested in looking to try for a car loan up to $3000 with me been on centre Link Newstart payments

  3. May 3, 2019 at 4:06 am — Reply

    Yeah hi I’m looking for someone to finance me for the amount $3200 I receive a cares pension I’ve found a good deal could some body contact me please to discuss this thankyou

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