Loans for casual and part-time workers
Casual and part-time workers can get personal loans. You'll need proof of regular income and regular savings. And the better your credit score, the better your odds of approval.
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Personal loans for casual employees or part time workers
Lenders consider full-time workers to be the least risky customers to lend to. But part-time workers with a stable income can also get approved, especially if you've had the same job for a while.
Casually employed borrowers have the hardest time getting personal loan applications approved.
You can maximise your chance of being approved for a loan by proving you can meet your repayments, such as by showing that you have a regular income, a good credit score, and that you have a history of paying bills and debts on time.
Why is it more difficult to take out a loan as a casual employee?
Your hours aren't stable
Casual employees do not have guaranteed working hours and therefore no fixed salary. While some weeks you may work 50+ hours, other weeks you may work no more than 10. This means that your weekly earnings fluctuate, which could potentially make meeting repayments difficult, at least in a lender's eyes.
You're not entitled to sick pay or annual leave
If you choose to take a holiday, or are forced to take time off for illness, you would not be entitled to any pay. For a lender, this can be viewed as risky as it could affect your ability to meet repayment obligations.
What's the difference between a part-time and casual employee?
| Part-time employees | Casual employees |
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Tips to get approved for a loan if you work casually
- Work for a year, then apply. Banks and lenders view people in casual employment as less of a risk if they have been employed at the same place for at least 12 months. This is partly because after 12 months of casual employment you have the right to ask your employer to be classed as a part-time worker. However, some lenders only require six months of steady employment to approve you for a loan.
- Get a letter from your employer. Much of the risk associated with lending to casual employees is the fear that they could stop receiving work. By providing a letter from your employer that confirms your employment and ensures the lender that there's no reason this arrangement shouldn't continue in the future, it could help your application.
- Make your repayments on time. Lenders are able to see a snapshot of your credit history, so make sure that snapshot shows off you regularly meeting your bill and debt repayments. This has the added effect of improving your credit score.
- Don't apply for multiple loans. Lenders are able to see any credit accounts and loans that you apply for and if you make multiple applications in a short space of time you may appear to them as an irresponsible borrower.
- Save. If you can show evidence of your savings to a lender, they may be more inclined to give you a loan. For example, if you are looking to buy a car and need a $5,000 loan and have $2,000 saved in a high interest savings account, the lender may see you as less of a risk.
- Apply with your own bank. Your own bank will have more concrete evidence of your spending and saving history than what is shown on your credit report and if this history is positive then you may be more likely to secure a loan.
- Consult an accountant. An accountant will be able to help you keep track of your tax returns, savings and spending. They'll have a record of everything so when you apply for personal loans, all the documentation is already there.
- Provide loan security. If you own an asset of value, such as your home or a vehicle, offering this as loan security could help you to get approved more easily and/or allow you to access a lower rate loan. Offering security reduces the risk to the lender. This is because they can repossess the asset should you default on the loan.
Tips to get approved for a loan if you work part-time
If you're employed part-time, you will have more loan options. Here are some tips on getting your application across the line:
- Check the minimum income. As your employment is considered more stable, you will just need to ensure you meet the minimum income criteria with regards to employment requirements. This is usually around $15,000-$20,000 p.a.
- Have you been working for at least 3 months? Many employers require you to be working at least three months as this shows your employment is stable, and in some cases, that you're out of your probation.
- Receive your pay into your bank account. Along with payslips, this will be a way for lenders to check your income against the information you provide in your application. If you are paid in cash, make sure you deposit this into your bank account or get payslips from your employer to be able to prove your income.
- Get in touch with the bank if you're unsure about eligibility criteria. This is the best way to check anything before submitting your application and reduces the risk of having a rejected application listed on your credit file.
What documents do I need for a loan for casual workers?
If you're a casual employee or employed part-time, the following documentation will be required when applying for a personal loan:
- ID, which may include a drivers license or passport
- Details of and proof of address
- Proof of employment (you may also be required to have been in your current role for 3, 6 or 12 months)
- Proof of income, such as 2 consecutive payslips and/or 90 days of bank statements
Additional documents you may need to provide, or that may help you get approved:
- A letter from your employer
- Details of your guarantor
- Details of loan security (e.g. a vehicle or other asset of value)
Lenders are looking at these documents to verify who you are and decide how risky it is to lend to you. If they see your bank statements show signs of paying bills on time and saving money, then you could have better chances of approval or even lower rates.
What do I do if I can't get a personal loan as a casual or part-time employee?
If you still aren't able to get approved for a personal loan, you do have some more options.
Short term loans
Short term loans, also known as payday loans, are an option you can consider if all else fails and you urgently need cash. However, it's important to keep in mind that short term loans are much more expensive than personal loans from normal lenders and have to be repaid over much shorter terms. They still have eligibility criteria you should try to match, but tend to be much less strict on it.
These loans are for durations of 16 days to 1 year and are for amounts of $100 to $2,000, but higher amounts up to $5,000 are also available. Be very careful with these loans, as regularly using them will cost you a lot of money.
Guarantor loans
Guarantor loans are where you include someone who is legally responsible for meeting your repayments should you default on the loan. Usually, guarantors are required to be homeowners with good or excellent credit scores.
So, if you have a friend or close family member who meets this eligibility and is willing to go guarantor on your behalf, it may improve your chances of having your personal loan application accepted. It may also help you to access a greater amount of funding than your salary would normally allow, but be aware that your guarantor's credit score may suffer if you fail to meet your repayments.
Joint application loans
Joint application personal loans allow you to apply with another person, usually your partner. This spreads the responsibility for your repayments across two people, making it less risky for the lender.
Do you really need a loan today?*Short term loans available to casual and part-time employees
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Ask a question
Hi im Anathi i need loan im working security my salary is 4000 and I need 2500 I’m going to pay on friday 26 but the problem is i don’t have payslip what must i do?
Hi Anathi,
If the loan you’ve chosen requires payslips as part of the application process, you may need to ask your employer for payslips so you can apply. You might also be able to inform the lender of your situation and ask if copies of your bank statements (where your salary is deposited) will be enough.
However, some lenders may not require payslips to approve you for a loan. They will just require the last 90 days of your transaction history.
I hope this helps,
Elizabeth
My 17 year old would like to get a loan for a new car. She has worked for the same employer from age 14. She is guaranteed employment when she finishes yr 12 this year. Is it possible for her to get a loan in her name or a co-loan with her father?
Hi Jayne,
It’s not possible for someone under the age of 18 to apply for a loan, she’ll need to apply for a guarantor personal loan. With this loan, her father will need to meet all of the eligibility criteria and will essentially be responsible for the loan should she not be able to make the repayments.
Many major banks offer guarantor personal loans, so you can try and check car loans and compare your options and pick one that will fit you best.
I hope this helps,
Elizabeth
Of all the products you claim assist people whose sole or combined income include Centrelink I’ve not found one single product that does actually do what you are claiming. My question is why do you bother?
Hi Jo,
Lenders have a variety of criteria they consider when approving applicants for loans, with income just making up one part of the application process. So when we list options for Centrelink borrowers, it is lenders that consider people who receive part of or their whole income from Centrelink payments. It doesn’t mean they will be automatically approved. Other things, such as debt, assets, and the overall ability to manage the loan comes into play when a lender decides whether or not to approve an application.
Just to make sure you’re on the right pages, here’s a list of loan options for Centrelink borrowers. Here’s a list of unemployed loans (i.e. your entire income comes from Centrelink) and here is a list of pensioner loans if you receive some sort of pension. If you are a retiree, you can check loans for retirees.
Hope this information will help,
Elizabeth
Good day! I am Lorilee. I just want to ask if I am able to get a loan of ₱10,000.00, I am 20, I am employed recently but for almost a week. I’d never reach a minimum rate. But I need it for emergency purpose. Will you help me with it. Thank you!
Hi Lorilee,
The options for casual and part-time employees are listed on the page above, but unfortunately as you have only been working a week I am unsure if you will be able to get a loan. Lenders usually need to see evidence of a stable employment history before they will approve you for a loan, and so require you to be employed for at least three months before they will approve you.
Thanks,
Elizabeth
Hello there, my name is luis Raccuglia, I just wanted to know, can a casual worker who been working in the same place for close to 4 years , be able to take a personal loan for example between $10,000 to 30,000 dollars , or an unsecured personal loan, or my other question would it be easier if you take the loan with a partner so use two names instead of one in the loan application, any more neo would be appreciated
Hi Luis,
Thanks for your inquiry.
Your eligibility for a personal loan will depend on your income, your financial stability and your employment situation. Each lender will have set criteria to determine the risk they are taking on by lending to you. One option may be to talk to your current bank if you have a good relationship with them as they may be more willing to offer you a loan. As you mentioned, another option is to apply for a loan as part of a joint application – you can find a list of lenders who offer joint application personal loans and check your options.
You can select the “Go to site” button of your preferred lender/bank to proceed with your application. You can also contact them directly if you have specific questions. A gentle reminder, please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.
I hope this will help.
Thanks,
Elizabeth