Loans for Pensioners in Australia: What You Can Borrow on Pension

A quote for new glasses comes in higher than expected, and your next pension payment is still 10 days away. On a pension, there usually isn't much room in the budget for a bill like that.

If you're on the Age Pension, Disability Support Pension or Carer Payment, you can apply for a small loan the same way anyone else can. You can also ask for an interest-free advance on your own pension, an option most borrowers don't have, and it's often a cheaper place to start.

What a loan for pensioners actually is

There's no special pensioner loan product. A loan for pensioners is a regular small loan where most or all of your income is a Centrelink pension. In practice, that means a Small Amount Credit Contract (SACC), which covers $300 to $2,000.

 SACC is regulated under the National Consumer Credit Protection Act 2009. The Act sets a ceiling on the fees and requires the lender to check you can manage the repayments before you sign anything. Our guide to loans on Centrelink covers how Centrelink income is assessed in general. If your income is a pension, the sections below cover the rules and options that apply to you.

Which pensions count as income for a small loan

Each of these three pensions is treated as regular income in a SACC application:

• The Age Pension, for people who've reached Age Pension age and meet the income and assets tests
  
• The Disability Support Pension (DSP), for people whose disability or medical condition stops them from working 15 hours or more a week
• Carer Payment, for people who give constant care to someone who has a disability or illness, or who is frail
  

For a SACC, your Centrelink payments need to be at least $800 a fortnight per applicant. A full pension usually clears that. From 20 September 2026, the maximum Age Pension is $1,237.70 a fortnight before tax for a single person and $933.00 each for a couple, including the pension and energy supplements, according to Services Australia. A part pension is different. If the income or assets test has reduced yours below $800 a fortnight, you won't meet the minimum for a SACC on that pension alone. 

A Medium Amount Credit Contract (MACC), for $2,001 to $5,000, needs employment income of at least $500 a week, and your pension doesn't count toward it. If you still work part-time and your wages reach $500 a week, you may be able to apply for a MACC.

How much you can borrow on the pension

The protected earnings rule sets the ceiling. It caps your SACC repayments at 10% of your net income, whatever the source, so at least 90% of your pension is left for everything else.

Here's an example. Say your pension is $1,200 a fortnight after tax. The most your SACC repayments can be is $120 a fortnight. A $700 SACC repaid over five months, works out like this:

• Establishment fee: $140 (20% of $700), charged once
• Monthly fee: $28 a month (4% of $700) for five months, so $140 in total
• Total repaid: $980, or about $98 per fortnight

That fits under the $120 limit. Now compare it with a $700 pension advance, which you'd repay at about $54 a fortnight over 13 fortnights, for a total of $700. The loan costs $280 more. That's why the advance is worth asking about first, if you haven't used it recently.

Use this Centrelink Advance Payment 2026 calculator and find how much you can actually borrow on pension.

SACC fees are capped by law, and your total repayments can't be more than twice the amount you borrowed. The figures above reflect the legal maximum, and your contract shows your actual fees before you sign. Our SACC loans guide has the full breakdown.

Pension advance vs small loan

All three put money in your account, but they cost very different amounts and suit different situations.

Pension advance: the cheapest option

A pension advance means getting part of your own pension early. Centrelink pays you a lump sum now, then takes a little less from each of your next 13 pension payments until it’s paid back. It costs nothing, with no interest and no fees.

• How much you can get: $588.05 to $1,764.15 if you’re single, or $443.30 to $1,329.90 per person if you’re a couple, at rates from 20 September 2026. On a part pension, the amount depends on how much pension you get.

• Who can get one: you need to have been on the pension for at least three months. You can’t get one if you owe money to the government, or if you couldn’t afford to pay it back within six months.

• How often: in any six-month period, you can take one advance at the highest amount, or a few smaller ones that add up to no more than the highest amount.

The amounts change every March and September, so check the latest figures with Services Australia.

A small loan: when the cost is urgent

A SACC makes sense when you’ve already used your pension advance, the bill can’t wait, and you don’t own a home or don’t want to borrow against it. It costs more than the other two options, but your home isn’t involved, and the amount and repayment period can be matched to the bill.

Free and no-interest help to check first

If the bill is for power, an appliance or a medical cost, there may be help, that means you don’t need to borrow at all. Our emergency loans guide lists more free options.

Energy Assistance Payment (WA)

If you have a Pensioner Concession Card and your electricity account is with Synergy or Horizon Power, you can get the Energy Assistance Payment as a credit on your power bill. If you don’t see it on your bill, call your retailer and ask them to add your card.

Hardship Utility Grant Scheme (HUGS), WA

If you’re behind on your power bill and at risk of being cut off because of financial hardship, HUGS can pay up to 85% of the overdue amount. In Perth and Geraldton, it pays up to $640 in a calendar year. You apply through your power retailer, so call them before the disconnection date.

No Interest Loans Scheme (NILS)

NILS lends money for essentials with no interest, fees or charges, so you only pay back what you borrow.

• What it covers: up to $2,000 for whitegoods, appliances, furniture, car repairs, and medical, dental and vet costs.

• Who can apply: singles earning less than $70,000 a year before tax, or couples and people with dependants earning up to $100,000.

• Repayments: spread over up to two years.

• Vehicles: if you need a car or mobility scooter for essential use, NILS for Vehicles lends $2,000 to $5,000, repaid over up to four years.

Check whether you’re eligible at nils.com.au. 

Free financial counselling

The National Debt Helpline on 1800 007 007 puts you in touch with a free financial counsellor, who can contact the company that sent the bill and negotiate a payment plan for you.

When a small loan isn't the right fix

• A small loan works best for one cost with a clear end point, like a car repair or a replacement fridge. It's a poor fit in a few situations:
• The shortfall comes back every fortnight. If your pension doesn't stretch to rent, groceries or bills on a regular basis, a loan only pushes the gap to your next payment. CashLab doesn't lend for everyday living costs, and a financial counsellor can help you look at your budget as a whole.
• You'd need a second loan to repay the first. If the repayments would leave you short and needing to borrow again, the loan is too big for your income. Ask for a smaller amount or a longer term, or look at the free options above.
• The repayments would cut into your rent or medication money. The 10% limit is a legal ceiling, and your own comfortable figure may well be lower. Work out what you can spare each fortnight before you apply.
• Someone else is asking you to borrow for them. A loan in your name is yours to repay. If a family member or friend is pressing you to take one out, talk to someone you trust first.

Protecting your pension from bad lenders

Some lenders advertise fast cash to people on fixed incomes, with promises no licensed lender can make. Before you apply anywhere, a few checks keep you safe:

• Don't share your myGov password. A licensed lender works out your income from your bank statements or a Centrelink income statement you download yourself. A request for your myGov password is a warning sign. You can see how a bank statement check works in our guide to loans without a payslip.
• Watch for promises of "guaranteed approval." The law makes every licensed lender confirm that the repayments are affordable for you, so a promise of approval before anyone has looked at your finances means the lender may not be following Australian credit law.
• Find NILS through nils.com.au. The Department of Social Services has warned about fake social media pages posing as no-interest loan providers, so start from the official site.
• Check the lender is licensed. Search ASIC's professional register at asic.gov.au for its credit licence number or authorised credit representative number. Then confirm it publishes a Target Market Determination and belongs to AFCA, the free complaints service.
• Don't feel rushed. A lender worth dealing with will give you time to read the contract and ask questions, and won't push you to borrow more than you need.

How to apply for a CashLab loan as a pensioner

You can apply online at cashlab.com.au, or visit our Midland or Geraldton store and go through the application face to face with a staff member. Have these ready:

• Photo ID
• 90 days of bank statements for the account your pension is paid into
• Your mobile number and email address
• A Centrelink income statement (detailed income and asset statement) if we ask for proof of income. You can download one yourself from your Centrelink online account through myGov. 

We look at your pension and your regular bills to work out whether the repayments fit, the same way we would for any other income. Approval comes with a contract that lists every fee and the total you'll repay, and nothing is final until you sign it. Our loans can't be used for rent, mortgage payments or everyday living costs. CashLab (Villashore Pty Ltd, ABN 67 595 859 152) operates under credit authorisation number 390571.

Important information

This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.

It can be expensive to borrow small amounts of money, and borrowing may not solve your money problems. Check your options before borrowing:

• For information about other options for managing bills and debts, call 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.

• Talk to your electricity, gas, phone, or water provider to see if you can work out a payment plan.

• If you're on government benefits, ask if you can receive an advance from Centrelink at servicesaustralia.gov.au/advancepayments.

• The government's MoneySmart website, moneysmart.gov.au, shows you how small amount loans work and suggests other options that may help.

CashLab, Villashore Pty Ltd, ABN 67 595 859 152, operates under credit authorisation number 390571. Comparison rate warning: comparison rates shown elsewhere on our site apply only to the example loan amount and term selected and may not include all fees and charges. Different amounts or terms will result in a different comparison rate. Full terms are available in our Target Market Determination and Credit Guide.