Understanding Centrelink loans

If you receive Centrelink payments and are considering a loan, it is important to understand how these products work and whether they are suitable for your situation.

At Fundo, we provide regulated credit products to eligible customers:

• Small Amount Credit Contracts (SACC): $500 to $2,000
• Medium Amount Credit Contracts (MACC): $2,001 to $5,000
• Personal Loans: $5,000 to $10,000

Centrelink income may be considered as part of your overall income during assessment.

Loans are subject to credit assessment, eligibility criteria, and approval.

Can I apply if I receive Centrelink?

You can apply if you receive Centrelink payments, provided you meet the eligibility criteria and can demonstrate that repayments are manageable.

To apply, you generally need to:

• Be at least 18 years old
• Be living in Australia
• Receive regular income of at least $1,000 per fortnight (this may include Centrelink payments)
• Demonstrate that you can meet repayments without substantial financial hardship
• Have an active Australian bank account in your name

Each application is assessed individually based on your full financial circumstances.

Important:

If Centrelink is your sole source of income, the maximum amount that may be approved is $500, subject to assessment.

What types of loans are available

Small Amount Credit Contracts (SACC)

• $500 to $2,000
• 4 to 39 weeks
• Establishment fee plus monthly fee
• No interest

Medium Amount Credit Contracts (MACC)

• $2,001 to $5,000
• 9 to 39 weeks
• Establishment fee plus interest

Personal Loans

• $5,000 to $10,000
• 9 to 24 months
• Structured repayments over a longer period
• Establishment fee plus interest

Personal Loans may be more suitable for larger one-off expenses where a longer repayment structure is required.

When people consider Centrelink loans

Short-term credit may be considered for unexpected, one-off expenses such as:

• Essential car repairs
• Urgent medical or dental costs
• Replacement of necessary household items
• Emergency travel
• Rental bond payments

These loans are designed for temporary needs, not ongoing financial gaps.

How the assessment process works

There is no such thing as guaranteed approval.

As a licensed lender, Fundo is required to assess your financial situation before approving a loan. This includes reviewing:

• Your income (including Centrelink where applicable)
• Your regular living expenses
• Existing financial commitments
• Recent bank transaction history
• Your ability to meet repayments without substantial financial hardship

If a loan is unsuitable, the application may be declined.

Past credit issues may affect approval and loan terms.

Application and funding process

Applications are completed online.

You will be required to:

• Provide personal and financial information
• Provide access to your bank statements for assessment
• Verify your identity and income

Once your application is assessed:

• If approved, you will receive a loan contract
• You can review all terms, fees and repayment details before accepting
• Funds are transferred to your nominated account as soon as reasonably possible

Processing times vary depending on verification requirements and bank systems.

Understanding costs

It is important to understand the total repayment amount before proceeding.

Example – SACC

$1,000 over 20 weeks

• Establishment fee: $200
• Monthly fees: $200
• Total repayable: $1,400

Example - MACC

$2,500 over 6 months

• Establishment fee: $400
• Interest charged: $389
• Total repayable: $3,289

These examples are illustrative only. Actual costs depend on loan amount, term, fees, interest and repayment behaviour.

Repayments

Repayments are set out in your loan contract and must be made as scheduled.

Depending on your circumstances, repayment frequency options may be available, such as weekly, fortnightly or monthly.

If your situation changes, contact Fundo as early as possible.

When a loan may not be suitable

A loan may not be appropriate if:

• You are relying on credit for everyday living expenses
• You are already struggling with repayments
• You are trying to repay other debts
• Complying with repayments would cause substantial financial hardship

Alternatives to consider first

Before applying, you may wish to explore:

• Payment plans with service providers
• Using available savings
• Government support options
• Free financial counselling

You can contact the National Debt Helpline on 1800 007 007 for free, independent support.

About Fundo

Fundo Loans Pty Ltd holds an Australian Credit Licence 491418.

We are required to assess all applications to ensure loans are suitable and do not place customers under substantial financial hardship.