White Goods Loans Centrelink

Even if you manage your finances properly, unexpected expenses can arise, which is especially tricky if your income source is Centrelink.

So, what do you do if your fridge, stove, or washing machine stops working? What do you do if you can’t afford to replace these appliances? You certainly can’t wait for your payday and let the food stored in your fridge go bad or the laundry pile up for weeks.

That’s when you can turn to white goods loans, Centrelink. But what are these loans, their types, benefits, and drawbacks?

What this article covers:

white goods loan centrelink

These loans help Centrelink customers afford white goods or a variety of them. These are large electrical appliances intended for domestic use. Since they’re used at home, that renders them personal loans.

White goods would traditionally be covered in white enamel paint, which explains the name. They’re used for cooking, cooling, washing, drying, and heating and include fridges, stoves, and air conditioners.

Like other loans, white goods loans come with several repayments over months or years. These loans also fall under loans geared towards those who receive Centrelink benefits. Unfortunately, most banks and many lenders reject applicants who receive them.

However, some may accept Centrelink payments (depending on how much of your income is from governmental benefits). Then, there are Centrelink loans, giving applicants whose primary income source is Centrelink a chance.

How Do You Use a White Goods Loan?

You use it to buy replacement white goods. White goods are classified according to their function into refrigeration, cooking, heating, cooling, washing, and drying appliances.

For the first function, we have fridges, freezers, and coolers. The second refers to stoves, ovens, and microwaves. Thirdly, heating and cooling appliances include air conditioners and heaters. Finally, you can purchase washing machines, dryers, and dishwashers for washing purposes.

What Are Your Options?

We want you to make an informed decision, so here’s what you can apply for:

Personal Loan

no interest loans centrelink

Personal loans are the most accessible option. You can apply for a $300 to $5,000 loan to purchase new white goods. Some lenders have flexible criteria, accepting Centrelink as a source of income. But personal loans tend to have high-interest rates.

However, note that some lenders don’t accept the following benefit types: some JobSeeker payments, Youth Allowance, Austudy, and Abstudy. The reason is that these payments aren’t stable; they depend on you having a particular employment or study position, which can change.

Despite having flexible requirements, lenders abide by responsible lending regulations, which protect you from accumulating debt that you can’t pay back. To explain, they consider your income sources, expenses, and loan cost to determine if you can afford a loan or not. And they do so at their own discretion.

Centrepay Deduction

According to Services Australia, “Centrepay is a free bill-paying service. Use Centrepay to arrange regular deductions from your Centrelink payment.” To explain, you give the service permission to pay a bill or ongoing expense, and the money is automatically withdrawn from your Centrelink payments.

These Centrepay deductions can go towards white goods. However, you’d need to buy them from an approved business. To find sellers who accept Centrepay, enter your location, business type, business name, and service in the search bar to find what you’re looking for.

You should note that you need to receive sufficient Centrelink payments for this payment method to work, and white goods tend to be expensive. Also, you can’t get two deductions with the same business, for the same benefit type, and for the same service reason.

centrelink loans interest free

Other restrictions relate to your benefit type; you can’t set up Centrepay deductions if you receive the following payments:

  • Abstudy (except for Basic Living Allowance)
  • Advance Payments (except for Family Tax Benefit Advances)
  • Child Care Subsidy
  • Status Resolution Support Services Payment
  • Bereavement Payment
  • Farm Household Allowance
  • Parental Leave Pay paid by employers
  • Dad and Partner Pay

Cash Advance

A Centrelink recipient can request a cash advance on their benefits, taking funds from future payments. If you’re on Age Pension, Disability Support Pension, and Carer Payment, you can get over $1,000 every six months. Other benefit types can make you eligible to receive up to $500.

Of course, you’d have to be eligible for an early partial transfer of your support payment or Family Tax Benefit (Partial A). And your eligibility relies on how long you’ve received benefits and what type of benefit you receive. Also, you should:

  • Reside in Australia during the time of application
  • Repay all advances before applying
  • Be able to repay the advance in six months
  • Not be indebted to the Australian Government

Interest-free loans for Centrelink recipients for white goods

Leasing

You can rent white goods for anything from months to years by making regular payments every week, fortnight, or month. After the rental period, the owner retrieves their washing machine, fridge, or else. Although leasing white goods can be a good short-term solution, you’ll never own the item, and “rent money is dead money.”

Lay-by

Lay-by is a payment method where you make multiple instalments over several weeks or months and receive the item after finalising the payments. As a Centrelink customer, it’d be convenient to make regular payments within your budget.

Nonetheless, you’ll have to make do without the item for the time being, which is impossible if your fridge has stopped working or so. But laying by is excellent if you have a functioning appliance that you want to replace with a newer model.

Rent to Buy

This method is a mix of the previous two. You rent the item for months or years, and you can purchase it after the rental period. This way, you get access to the appliance instantly, which is useful with basic white goods like fridges and stoves.

The eligibility criteria vary from lender to lender, but they require you to:

  • Be at least 18 years old
  • Be an Australian citizen or permanent resident
  • Have a Centrelink income that suits the loan amount
  • Have a checking account
  • Have an eligible Centrelink benefit type

Centrelink loans for purchasing white goods

Since this is an online application, it’s simple and accessible; you only have to follow these three basic steps:

1. Complete the Online Form

Supply us with your personal information and necessary documents to complete the form, including:

  • Full name
  • Date of birth
  • Relationship status
  • Mobile phone
  • Email address
  • Internet banking credentials
  • Proof of ID, such as a passport or driver’s licence
  • Proof of Centrelink payments
  • Bank statements for the 90 days before your application
  • Tax returns for the past two years
  • 100-points of identification

Of course, you’ll need to specify the loan amount, loan term, and purpose of the loan (purchasing white goods). Then, we’ll confirm your data and request additional information if needed.

2. Get Matched

We’ll find you a lender that’ll approve your loan; this process can take a few moments! We only deal with reputable lenders, but we urge you to do your research and ensure that they’re up to your expectations.

3. Sign the Loan Contract

Interest-free white goods loans for those on Centrelink

The loan provider will approve your loan application if they decide you can make its repayments comfortably. They look at your Centrelink income, credit score, expenses, and other financial indicators.

Then, they draft a loan contract, which you can sign electronically. Before doing so, you should review its terms, including the loan amount, repayments, loan term, repayment dates, and applicable fees. Finally, the loan provider will contact you to ask how you’d like to receive the payment, and you’ll have your loan the same day or the following one!

Yes, you can get Centrelink loans interest-free, but you’ll have to apply for a Small Amount Credit Contract (SACC). These loans are up to $2,000. Thanks to the Australian Securities and Investments Commission (ASIC), lenders can’t charge interest on them but can request capped fees.

To illustrate, lenders can charge a 20% establishment fee of the loan amount, a monthly 4% fee, government fees, default fees, and enforcement costs. Also, they can’t charge you more than twice the loan amount. Finally, you pay the cash loan back over 16 days to 12 months.

Can I Get a White Goods Loan for Bad Credit?

At Orange Loans, we understand that credit scores aren’t everything, and we want to provide accessible financial products to Australian citizens. So, we’ll find you lenders who accept bad credit. They’ll probably look at your current employment status and income to evaluate your eligibility.

Nonetheless, lending money to applicants with bad credit, late repayments, payment defaults and so on is risky. For that reason, loan providers will charge you high interest rates.

Centrelink loan scheme for white goods

These loans have flexible repayment options. So, you pay them back in anything from 16 days to two years, which renders the payments more manageable (even for low-income households).

To elaborate, if the loan is $2,000 or less, you can repay it in 16 days to 12 months. If it’s between $2,001 and $5,000, its loan term can range from 15 days and two years.

Additionally, you can make the payments every week, fortnight, or month. This way, you can schedule them to match your payment cycle. On your repayment date, the funds will be automatically deducted from your account.

Another repayment option is making early repayments. If you intend to repay your loan early and become debt-free fast, you want a lender that won’t charge you early repayment fees. This way, you get to save tons of money on ongoing fees.

Final Thoughts

Ultimately, if you’re looking for a white goods loan, some lenders consider Centrelink benefits as an income source, allowing you to take out a personal loan. Then, you can use it to buy a fridge, washing machine, air conditioner, or other white goods that you need.

Our parting advice would be to consider your financing options before making a decision, and you can reach out to us with any questions!

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