Dos and Don’ts – Applying for a Centrelink Loan

There are many benefits to getting a Centrelink loan. One of which is to use the funds in debt consolidation to pay off your existing debt.

For borrowers who are currently receiving benefits from Centrelink, they may find it difficult to get a loan. We run through the ‘dos’ and ‘don’ts’ when it comes to applying for a Centrelink Loan to help in improving their chances of approval.

Apply for a Cigno Centrelink Loan today!

How to apply for a Centrelink loan

A Centrelink loan is designed for borrowers whose income comes mainly from Centrelink and has a relatively low income. While some banks and lenders do not consider applications from borrowers who are on Centrelink, Cigno can assist in your loan application for up to $1000.

When applying for a Centrelink loan from Cigno, you can expect a speedy outcome and fast transfers. Cigno will require you to submit your address, contact details, and your recent 90-day bank statement. If further details are needed, you’ll be notified immediately to avoid any delays in the process.

The dos of getting a loan on Centrelink

A Centrelink loan could help you to get out of a tricky situation and achieve your financial goals. Before agreeing to one, make sure to consider some of the Dos.

  • Do read the fine print — With any type of loan, you have to read the fine print. Some loans like payday loans come with high-interest rates, which you may not be aware of and can result in difficulty to pay back.
  • Do have an emergency fund — Many people resort to Centrelink payments to cover urgent costs like bills or a car repair. Having an emergency fund can prepare you when unexpected circumstances pop up.
  • Do learn and understand about Centrelink payments — Make sure to understand your Centrelink payments and their limitations. Just like Youth Allowance, not all lenders accept these types of payments. Learn more about Centrelink payments and their consequences.

The don’ts of getting a loan on Centrelink payments

Loans can be a good financial tool. Following the Don’ts below can help to ensure you’re taking the proper steps.

  • Don’t skip a loan payment — If you miss a payment, you also have to pay additional fees and penalties, aside from more interest. These can add up over the life of your loan.
  • Don’t forget about your budget — Your new loan should be included into your budget? Remember that having a Centrelink loan is an added responsibility.
  • Don’t expect an automatic approval — Given that your lender accepts Centrelink income, that doesn’t guarantee your loan application will be approved. When in doubt, ask a professional.

What loans can I receive on Centrelink?

Learn the types of loans on Centrelink payment available to you and review the eligibility requirements before applying. It usually depends on your specific financial standing, your job, and your Centrelink program.

Usually, lenders offer these loans on Centrelink payments:

Personal loans — These types of loans usually require a minimum income, and not all types of Centrelink income are accepted.

Car loans — Your payments serve as security for your car loan, which usually comes with a lower interest rate.

Payday loans — A payday loan is usually a short cash loan of up to $2,000.

Centrelink cash advance — A cash advance on your Centrelink payments is possible and a good alternative to a loan.

Overdraft — If you’re in good financial standing with your bank, an overdraft facility might be possible. You can draw a certain limit from your account for emergencies, even if you have a low or no balance.

Apply for a Cigno Centrelink Loan today!

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice –

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat