Losing a job or being between jobs doesn't automatically rule out getting a small loan. What it does change is which loan you might qualify for, and how much you can actually borrow. Before anything else, there are free options worth checking, and this guide starts there.
Key Takeaways
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Being unemployed doesn't automatically rule out a small loan, though it does affect which loan and how much you can borrow.
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Centrelink payments count as income for a SACC loan and it should be atleast $800 per fortnight. MACC loans, above $2,000, need regular employment income of at least $500 per week, so they're generally not available on Centrelink alone.
- Before considering any loan, it's worth checking the No Interest Loans Scheme, a Centrelink advance payment, & free financial counseling first.
- Responsible lenders assess whether a loan is genuinely affordable before approving it, irrespective of your employment status.
- If you're dealing with an ongoing income gap rather than a one off cost, a loan usually isn't the right tool. Free advice can help you find a better path.
What lenders actually look at when you're unemployed?
Lenders don't really work off a simple employed or unemployed label. What actually matters is whether you have regular income coming in, and where it comes from. Someone unemployed but receiving Centrelink payments still has regular income. Someone with no income at all, from any source, doesn't.
This distinction decides both whether you can borrow and how much. It's worth understanding before you apply anywhere, not just with CashLab.
Regular income versus no income
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If you receive Centrelink payments regularly, that counts as income for a SACC loan, but it should not be less than $800 per fortnight.
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If you have no regular income from any source, a responsible lender can't approve a loan, since there'd be no realistic way to repay it
How your income actually gets checked
Lenders don't take your word for it when it comes to income, and that applies whether you're on Centrelink or working. Part of any application involves a review of your last 90 days of bank statements, which is a standard requirement under responsible lending rules, not something specific to CashLab. For someone on Centrelink, this usually works in your favor rather than against you. Regular payments landing on the same schedule each fortnight are exactly the kind of consistent pattern a lender is looking for, even without a traditional payslip to point to.
What you can borrow while unemployed?
A SACC loan, covering $300 to $2,000, accepts Centrelink income the same way it accepts any other regular income. Our full SACC loan guide covers eligibility and costs in detail.
A MACC loan, covering $2,001 to $5,000, needs regular employment income of at least $500 per week. If Centrelink is your only income, a MACC generally isn't available to you. If you also work part time or casually alongside Centrelink, that employment income can count. Our full MACC loan guide explains this in more depth.
If you're specifically wondering how Centrelink income is treated across CashLab's loans, our guide on loans and Centrelink income covers that separately.
Free options worth checking first
A free option might cover exactly what you need, and it's always worth checking before anything else. Some of these solve the problem completely, with no cost involved at all.
No Interest Loans Scheme
Good Shepherd runs this program, offering up to $2,000 for essentials at no interest and no fees for people on a low income. It works completely separately from a commercial loan and is worth looking into first if you think you're eligible. Visit nils.com.au
Centrelink advance payment
Depending on which payment you receive, Services Australia may let you draw down part of an upcoming payment ahead of time, with no interest charged. Check your eligibility directly at servicesaustralia.gov.au
Free financial counseling
The National Debt Helpline, on 1800 007 007, provides free, independent financial counseling. Talking to a counsellor before borrowing, especially if things have felt tight for a while rather than just this one cost, can help you see options you might not have considered.
Other support worth checking
Services Australia also runs additional support options for specific circumstances, including recent job loss. Eligibility rules and payment amounts change, so it's worth checking directly on their site rather than relying on general guidance here.
If a loan is still the right call
A small loan tends to make more sense for a genuine one off cost, something like a car repair or an unexpected bill, rather than an ongoing shortfall in your regular income. If free options don't cover what you need and the cost is a one off, a SACC loan sized to exactly what's short is a reasonable option to consider.
If what you're actually facing is an ongoing gap between your income and your regular expenses, a loan won't fix that underlying problem. Free financial counseling is a better starting point in that situation.
Borrowing exactly what the gap requires, rather than rounding up for a buffer, keeps repayments as manageable as possible. If you're not sure how much you actually need, working it out precisely before you apply is worth the extra few minutes.
Common costs this comes up for
A few situations come up often for people between jobs or relying on Centrelink while they look for work. None of these are unusual, and they're the kind of one off cost a small loan is generally meant for, rather than an ongoing shortfall in regular income.
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Car repairs needed to get to interviews or a new casual shift
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Tools, uniforms, or basic equipment required to start a new role
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Connecting utilities after moving somewhere cheaper or closer to available work
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A gap between your last pay from a previous job and your first Centrelink payment landing
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Medical or dental costs that come up unexpectedly while you're between jobs
These costs often land at exactly the wrong time, which is part of what makes them feel urgent. Treating them as specific, contained costs, rather than a sign of a bigger problem, helps in deciding whether a small loan is the right fit.
If what you're facing looks like one of these, sized to a specific, one off amount, that's generally a better fit for a loan than an open ended or ongoing expense.
What to check before applying anywhere?
Before applying for a loan with any lender, including CashLab, take a minute to check they're legitimate.
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Check whether the lender actually holds a current licence by searching ASIC's register
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A properly licensed lender will have a Target Market Determination published somewhere on their site
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See whether they list a real address, not just a contact form
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Check for AFCA membership, which gives you an independent place to go if a dispute comes up
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Be wary of any lender promising approval before actually reviewing your situation. A genuine assessment takes a little time, because it's legally required to
This matters more than usual if you're searching for a loan while unemployed or on Centrelink, since this exact situation is often specifically targeted by less careful lenders. Claims like “no credit check” or “guaranteed approval regardless of income” are marketing language, not something a properly licensed lender can actually promise, since responsible lending law requires a genuine affordability check on every application, without exception.
Why does CashLab accept Centrelink income?
CashLab treats Centrelink payments as regular income because that's what they are. A responsible lender's job is assessing whether repayments are affordable and predictable, not judging where the money comes from. That's the same principle behind every SACC assessment we do.
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Real stores in Midland and Geraldton if you'd rather talk to someone directly
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Centrelink income (atleast $800 per fortnight) is accepted the same way as any other income for our SACC loans, up to $2,000.
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Every fee stays within the legal cap, with nothing extra added on
How to apply?
Applying is straightforward. Fill in the online form, attach your last 90 days of bank statements along with ID and proof of income, then wait for a decision. If you'd rather not do it online, both the Midland and Geraldton stores accept in person applications.
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:
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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.
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Talk to your electricity, gas, phone, or water provider to see if you can work out a payment plan.
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If you're on government benefits, ask if you can receive an advance from Centrelink at servicesaustralia.gov.au/advancepayments.
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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.