Loans for people on a pension

Just because you receive a pension, doesn't mean you can't take out a loan.

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If you rely on Kiwisaver, NZ Superannuation or another type of pension for your retirement funds, you may find your loan options somewhat limited. That’s because many lenders require you to have a steady job to be eligible.

However, when it comes to loans for people on a pension, you do have some choices. Keep reading to find out what those are so you can decide on the right loan for you.

Harmoney Unsecured Personal Loan

Harmoney Unsecured Personal Loan


6.99 % p.a.


  • Borrow from $2,000
  • 100% online
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100% confidential application

Harmoney Unsecured Personal Loan

Apply today to get approved within minutes for up to $50,000.

  • Max. loan amount: $50,000
  • Loan term: 36 to 60 months
  • Turnaround time: 99% of approved online applications funded in 24 hours
  • Fees: Establishment fee of $200 for loans from $2,000-$5,000 and $450 for loans from $5,000-$50,000
  • No early repayment fees
  • Personalised interest rates based on your circumstances
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Types of personal loans for people on a pension

  • Your existing bank. If you have a good history with your bank, this is usually an excellent place to start. You can visit in-branch to discuss your options and find out what personal loans are available for applicants who are retired and receiving superannuation.
  • Secured personal loans. Secured loans require you to attach a high-value asset as a guarantee and in return, you can borrow the value of that asset. Examples of assets include vehicles, term deposits or equity in your home.
  • Unsecured personal loans. You don’t have to attach an asset to this loan as it’s unsecured. You can use this loan for investment purposes, to take a holiday, buy a used vehicle or to consolidate debt.
  • Low-doc loans. An option for people who can’t apply for a traditional personal loan. Lenders require less documentation but tend to have higher rates and fees.
  • Short-term loans. As these loans are smaller and repaid over a shorter term, they have more flexible lending criteria than those set by banks and other lenders. You can usually borrow between $100 and $2,000 for a period of 2 days to one year. Many lenders understand that superannuation payments vary from one person to the next. The loan provider will verify your income and expenses before they potentially fund the loan.
  • Reverse mortgages. These loans offer you a line of credit, regular income stream or lump sum payment by borrowing against the equity in your home. While traditionally thought of as high-risk, reverse mortgages are becoming a more mainstream borrowing method.
  • Overdrafts. This is a convenient credit product that lets you draw over and above your account balance in your everyday transaction account.
  • Car loans. If you are looking to purchase a new or used vehicle you can consider a car loan. These loans offer competitive rates because the vehicle you purchase is used to guarantee the loan.

Personal loans you may be able to apply for while on a pension

Select “Compare” to see the full eligibility requirements of each lender before applying.

Data indicated here is updated regularly
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Application Fee
Harmoney Unsecured Personal Loan
6.99% - 29.99%
36 to 60 months
$200-$450 depending on loan size
Apply for an unsecured personal loan up to $50,000 with no early repayment fees. Eligibility: Be a NZ resident/citizen and have a good credit score.
Nectar Personal Loan
8.95% - 29.95%
6 months to 4 years
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online. Eligibility: Must be 18+, an NZ citizen or permanent resident, and have an income of $350 per week or more (after tax).
Lending Crowd Personal Loan
3 or 5 years
$250-$1,450 depending on the amount borrowed
A secured personal loan from $2,000 to $200,000 with repayment instalment options. Eligibility: Be an 18+ NZ permanent resident, earn $30,000 or more, have a good credit history and collateral/security.
QuickLoans Personal Loan
9.95% - 23.95%
6 to 60 months
$95-$595 depending on loan size
Borrow up to $20,000 and apply online within 5 minutes. Eligibility: Be over 18, hold permanent NZ residency, have collateral/security, earn at least $450 per week.
Admiral Finance Secured Personal Loan
13.95% - 23.95%
6 to 60 months
$125-$595 depending on loan size
A secured loan from $1,000 to $50,000 with a quick online application process. Eligibility: Be an 18+ permanent NZ resident, have collateral/security, earn at least $450 per week.
NZCU South Personal Loan (Unsecured)
10.90% – 28.90%
Up to 7 years
An unsecured personal loan up to $20,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
NZCU South Personal Loan (Secured)
9.90% - 28.90%
Up to 7 years
A secured personal loan up to $20,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.

Compare up to 4 providers

What are the risks of no credit check loans?

  • Unreputable lenders. Check the lender has a credit licence and is not charging you more than the Financial Market Authority (FMA) allows. The lender should be easily contactable.
  • Unaffordable repayments. Consider the size of the regular repayments and ensure the loan is able to be repaid during the loan term. If not, extra fees apply to extend it. Be careful, since repayment periods for these kinds of loans tend to be shorter than regular loans.
  • Multiple applications. Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
  • Check rates and fees. Establishment and monthly fees are capped, so be wary of lenders quoting prices beyond the legal maximum amounts. Be crystal clear on what will be charged for late payments or a default on the loan. The total cost of the loan matters here – lenders can charge interest rates on top of everything else.
  • Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can’t repay.

How to apply for a loan on a pension

The table above can be a good starting point to find a loan for people who rely on a pension as their main source of income. You can click on the name of the lender to read a review, and you can click “Go to Site” to submit your application. If you have questions regarding your eligibility, you can contact the lender directly.

To give yourself the best chance of being approved, make sure you have all your information on hand before starting the application process. This includes:

  • Personal information. Your name, contact, identification information and details regarding your family situation.
  • Loan details. Explain how much you need and the purpose of the loan.
  • Finances. Remember to include all sources of income and provide evidence of this. You also need details of debt and liabilities.
  • Assets. What assets do you hold? This may be your home, rental properties or vehicles.

Personal loan applications are counted as inquiries on your credit report. Enquiries play a factor in your overall credit score. Lenders may also view too many enquiries as a red flag. To keep your credit in good standing and improve your chances of approval, you may want to consider limiting your number of loan applications.

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Frequently asked questions

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