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Loans For The Unemployed In Melbourne

Break Free Home Loans are a leading Melbourne mortgage broker, with over 20 years of industry experience. We provide lending solutions and advice tailored to your needs. We work closely with clients as trusted advisors and are accessible to clients when needed.

Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.

If you’re unemployed and struggling to make ends meet, you may be considering taking out a loan. Taking on more debt may not seem like the ideal solution, but in some cases it can help you get through a tough financial situation. There are financial hardship loans for unemployed Australians, and these can be a good option if you’re struggling to find other forms of credit. If you’re searching for quick easy loans for unemployed individuals, our brokers can help you understand everything you need to know about cash loans for unemployed people in Melbourne. We can help you apply, compare the benefits and risks to bring you a loan with the most value to meet your needs.

What Are Unemployed Loans?

What are loans for unemployed people? As the name suggests, loans for unemployed people are designed specifically for those who are out of work. While it may be difficult to obtain loans from traditional lenders when you’re unemployed, there are a number of financial institutions that cater to those in this situation. In fact, there are select lenders who offer low to no interest unemployed loans. This makes for an affordable finance option especially when you need money for urgent expenses like medical bills or home repairs. Cash loans for unemployed Australians can give you the funds you need while letting you repay the loan over time.

However, it’s important to compare rates from different lenders and watch out for predatory lenders. Predatory lenders may take advantage of your low credit score or lack of consistent income to offer restrictive loans with exorbitant interest and fees. When you work with a qualified broker from Break Free Home Loans, you can find reputable lenders who offer fair, affordable finance. This includes banks, online lenders, credit unions, community lenders and private lending options. Furthermore, our brokers can submit a loan application on your behalf for your best chance at approval. We check your eligibility and recommend the most suitable loan product with flexible repayment terms.

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How Do They Work?

A good cash loan for unemployed individuals will offer the following features:
loans for unemployed
  • Faster approval process: Avoid lengthy wait times for approval and extensive paperwork.
  • Less strict lending eligibility criteria: Lenders of loans for the unemployed will practice inclusive lending policies. This makes it easier for unemployed individuals, pensioners, job seekers, Centrelink benefits recipients and people with bad credit to qualify. They will look at your repayment strategy on a case-by-case basis to determine whether you have the borrowing power to qualify for their loan.
  • No hidden fees: A clear fee structure will apply for your loan. There will be no penalties for early payments or extra repayments. Responsible lenders want you to have the freedom to get out of debt sooner.
  • Flexible repayments: Lenders will offer flexibility when it comes to the purpose of your loan, the amount borrowed, your repayment schedule as well as the frequency of repayments. When you do your research and find the right lender, you can get flexible loan terms that will make your repayments easy to budget for.

How Much Can I Borrow?

How much can I borrow with loans for unemployed people? The amount that you can borrow with loans for people on unemployment will depend on a number of factors, such as your income and your credit history. However, you can typically expect to borrow anywhere from $500 to $5,000 AUD.

Small Loans

You can borrow between $500 and $2,000 AUD with small loans unemployed finance. This type of cash loan works well for small payments such as paying for car repairs or an unexpected phone or utilities bill. In most cases, the cost is a 20% upfront establishment fee (which can be split across payments) and a 4% monthly fee. You often won’t be charged an interest rate for loans below $2,000.

Medium Loans

Medium loans are ideal for applicants who need to pay for larger expenses such as a rental bond or an emergency home repair. If you need upwards of $2,000, a medium loan allows you to access funds up to $5,000 AUD. Generally, you can expect a flat upfront $400 establishment fee, which can be spread across payments, and up to a 48% annual percentage rate. There are no monthly fees or maintenance costs.

Large Loan

When you have major expenses to account for and require larger amounts, you may be able to negotiate with some lenders. Maximum loan amounts for unemployed individuals are usually capped at $10,000 AUD.

How To Get A Loan For Unemployed Approved

There are personal loans available to unemployed applicants who have financial difficulties and need cash right away. If you’ve been experiencing money problems, loans for the unemployed can provide the financial assistance you need to make ends meet. The main advantage of these loans is that they’re much easier to qualify for. Should you meet the lender’s list of basic conditions, you will generally be eligible for finance.
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Application Process

Unlike big banks and traditional financial institutions, private and online lenders who offer loans for the unemployed on benefits, loans for job seekers and pensioners won’t impose restrictive eligibility criteria. You can prove your ability to repay the loan beyond your credit score or a conventional income. To be approved for a personal loan, lenders will only need to see simple evidence of income from your bank statements alongside your application form.

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General Requirements

However, there are still some conditions you need to meet to be eligible for loans for unemployed Australians. These basic eligibility requirements include:

  • Be over the age of 18: Lenders will verify this using your proof of identification. You can offer your passport, proof of age card or driver’s licence.
  • Have a regular source of income: This can be in the form of employment, self-employment or even from Centrelink payments and other government benefits. If you’re self-employed, lenders may look at your revenue projections or any assets you have on your premises as well as the nature of your industry.
  • Have a good credit history: In most cases, lenders will need to see a minimum three months worth of bank statements to review your credit history. They will confirm and assess any defaults, late payments or discrepancies they find to determine your credit score.

What To Consider When Applying For Cash Loans For Unemployed Individuals?

When it comes to loans for unemployed people, you will need to consider the following factors before committing to anything:
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Loan Amount

It’s important you take out a loan amount you can afford comfortably within your budget, and one that meets your needs. Consider what you will be using the funds for and how much is appropriate to borrow based on your ability to repay the loan. You need to find a lender who’s guaranteed to offer you the right amount without charging exorbitant interest or fees, as these add up significantly to the cost of the loan.
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Comparison Rate

Your comparison rate will account for the true cost of the loan, inclusive of interest rates, monthly fees and all possible charges within your loan term. This will give you a clear indication of how much the loan will cost you overall. It’s important to compare multiple offers from competitive lenders to decide on the best option.
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Repayment Frequency

The repayment terms for loans for unemployed people will vary depending on the lender. However, most personal loans have repayment terms of between 2 and 7 years. This means you’ll need to make sure you can afford the repayments before taking out a loan. You can often make weekly, monthly or fortnightly payments.
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Loan Terms

Loans for unemployed people typically have shorter terms than other loans. This is because the lenders see unemployed applicants as being a higher risk. The terms can range from a few months to a few years.

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Establishment Fee

There may be an establishment fee charged when you take out loans for unemployed individuals. This is a one-time fee charged by the lender to cover the cost of setting up your loan. This is usually capped at 20% of the total loan amount. It’s important to compare loans from multiple lenders to make sure you’re getting the best deal possible.

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Rate Type

Loans for unemployed people are typically unsecured, meaning they’re not backed by an asset such as a house or a car. As a result, they tend to have higher interest rates than secured loans. However, there are still personal loans available to unemployed applicants with competitive interest rates. And while the interest rates for loans for unemployed loans are typically higher than for other loans, this will vary depending on the lender. There are fixed interest rate, variable interest rate and split interest rate options available.

Using The Loan For Unemployed In Melbourne

You can use your personal loans in many ways. This includes:

Medical Expenses

You can use your funds to cover the cost of medical expenses. Emergency medical expenses are unexpected, urgent and dangerous if neglected. Rather than delaying treatment you need, you can attend to medical problems straight away and spread out its cost over the life of the loan.

Home Bills

Your electricity, gas or water bill is due and you’re unemployed — what do you do? If you’re struggling to pay your bills, there are a few options available to you. You could apply for a financial hardship loan or a private loan to give you some breathing room. Alternatively, you could contact your local utilities provider and explain your situation. They may be able to offer you a payment plan or some other form of assistance.

Home Repairs

No one likes dealing with home repairs, but they’re an inevitable part of homeownership. If you’re unemployed and need to make some repairs, you could apply for loans from financial hardship loans programs or private lenders. This way, you can get the funds you need to pay for plumbing repairs, roofing repairs and attend to any damages or improvements.

Car Repairs

If your car breaks down and you can’t afford the repairs, loans for the unemployed can help. You can also use the money to pay the cost of your car insurance.

Rental Bonds

Are you struggling to pay rent or pay for a deposit? If you’re unemployed and having trouble paying for your accommodations, there are a few options available to you. You could apply for financial hardship loans from the government, or you could look into loans for unemployed people.

Veterinary Bills

When your pet is sick, it can be a painful experience, and vet bills may run into the hundreds if not thousands of dollars. If you’re unemployed and your pet becomes ill, you might find yourself in an ethical bind since you won’t be able to pay for their recovery. Instead of stressing out, you can apply for a loan, get them treated and repay the amount you borrowed over time.

Other

Perhaps you’ve decided to go back to university. Education loans for the unemployed can help pay for school fees, books and other education-related expenses. Or you’re moving to secure a new job and be closer to work. If you need to move and can’t afford the moving expenses, relocation loans for unemployed people can help cover the cost.

How To Calculate Payments For Loans For The Unemployed

For smaller loan amounts, you will be charged a fixed one-time setup fee of 20% on top of the principal amount, a fixed monthly charge of 4% per month for the term, and variable late fine penalties. For medium to larger loan amounts, you will usually need to account for higher interest rates and monthly account keeping fees into your repayments.

Alternative Loans For Job Seekers

There are other alternatives for financing for job seekers apart from unemployment loans. These options include:
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Grants: Government agencies and other organisations offer grants that can help with things like job training, education and living expenses. You don’t have to repay a grant, so it’s worth checking to see if you’re eligible for any.
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Scholarships: There are often scholarships available to help cover the cost of study or training for unemployed persons. Check with your chosen institution or the government’s scholarship website to see what’s available.
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Centrelink payments: If you’re unemployed, you may be eligible for Centrelink payments like JobSeeker Payment or Youth Allowance. These can help with things like food and housing costs.
Credit cards: Some credit cards offer interest-free days or low interest rates for a set period of time. This can help you if you need to borrow money to cover expenses. Just make sure you can repay the debt before the interest-free period ends.
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No interest loans: No interest loans are available from some community organisations. These loans can help you pay for essentials like fridges and washing machines. You won’t have to pay any interest on the loan, but you will need to repay it over a set period of time.

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Personal loans: Personal loans can be used for a variety of purposes, including consolidating debt or paying for unexpected expenses. Just be aware you’ll need to repay the loan, plus any interest and fees, over a set period of time.

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Payday loans: Payday loans are designed to help you cover unexpected expenses or tide you over until your next payday. But be aware that these loans come with high interest rates and fees, so you’ll need to repay them as soon as possible.

Crowdfunding: Crowdfunding platforms allow you to raise money from a large group of people in order to pay for your living expenses until you get back on your feet.

Got Any Questions?

Our brokers are more than happy to answer any questions you have. We can help you compare loans, check your eligibility and submit an application on your behalf. With our experience in the financial industry, we can help you build a strong case for your loan approval. No matter your situation, our focus is to help you get affordable finance with flexible repayments and low interest rates. Contact us today to begin your application.
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Frequently Asked Questions

The following are some of our most frequently asked questions:

Can I Get Loans For The Unemployed In Melbourne?

Yes, you can. The eligibility requirements for taking out loans for unemployed people are:

  • You need to be over 18 years old.
  • You need to be an Australian citizen or resident, or an eligible visa holder.
  • You need to supply the required documentation such as proof of identity, proof of income and proof of address.
  • You have a job or some form of income. This can be from welfare payments, Centrelink payments or a part-time job.
  • You have a good credit history. Lenders will check bank statements from the past three months to assess your credit score.

If you’re unemployed and need a loan, there are a few things you can do to improve your chances of being approved. This includes getting a co-signer or guarantor on your loan. A co-signer or guarantor is someone who agrees to pay back the loan if you default and be responsible for your debt. You can also opt for secured finance and provide security for your loan. Secured lending will require some form of collateral from you to offset the risk to lenders. This can be in the form of a car, a house or other valuable assets.

Is It Possible To Get Loans For The Unemployed On Benefits?

You can get loans for unemployment on benefits. You simply need to supply evidence you’re receiving government benefits such as Centrelink payments when you apply. Most lenders are happy to consider applications for:

  • Loans for people on Centrelink
  • Loans for pensioners
  • Loans for people with bad credit

How To Get Small Loans For Unemployed In Melbourne?

Work with a qualified broker to find a suitable loan product from a reputable lender. Then begin your application. The process of applying for a personal loan when you’re unemployed is simple and straightforward. All you need to do is provide some supporting documentation on your application such as:

  • A copy of your ID: Lenders need to verify if you’re an Australian passport holder or eligible visa holder, as well as your age.
  • A short application form: This will contain some personal details such as your address, bank details and phone number. In most cases, you’ll have to outline why you need the loan, how you plan to use the funds and your repayment strategy. You should be as honest as possible about this information.
  • Proof of your income: Either in the form of wages or Centrelink benefits.
  • 90-day history of bank transactions: Lenders will need to assess your credit history by viewing your bank statements for the past three months.

Contact our team

We love to hear from each and every one of you. Please feel free to reach out to us today!