Home
Personal Loans
Personal Loans For Casual Employees

Search and compare casual employee personal loans

Don't feel locked out of the market because you're not employed on a full-time basis. Compare personal loans for casual employees and find one that's right for you.

100+ personal loan providers in RateCity’s database

290+ personal loan products in RateCity’s database

Mark Bristow

Updated on

15 Jan, 2025

Providers we compare

View all providers

What is a casual employee and how is it different from a part-time employee?

A casual employee differs from a part-time employee in that they are generally paid an hourly rate and do not have access to paid leave entitlements, including sick leave and holiday leave. Instead, they are entitled to casual loading, which is an extra payment on top of their regular hourly earnings, designed to compensate for the lack of paid leave.

Casual workers generally do not have set or guaranteed working hours. The nature of their work means they will not be paid if they are away from work.

A part-time employee, on the other hand, is defined as someone who completes paid work of less than 38 hours per week but usually works regular hours each week. They are generally permanent employees or on a fixed-term contract. Like full-time employees, part-time employees are entitled to paid sick leave and annual leave.

Some 2.5 million Australians are casual employees. While it might be harder for these workers to secure a personal loan, they are available from some lenders. If you’re a casual employee considering applying for a personal loan, make sure to do your research, check your credit score and be aware of circumstances that could influence your application.

Is it harder to get a personal loan as a casual employee?

Most lenders typically prefer borrowers to be in full-time employment for a number of reasons:

Unstable hours and income - A casual employee’s working hours are not guaranteed and can change from week to week. Consequently, their income is unstable, regardless of their rate of pay. For example, while a casual worker might earn $1,000 in a good week, they might earn half of that the following week if their employer feels there is less work that needs to be done that week. Lenders generally value work stability as they see it as an indicator of one’s capacity to service a loan.
Lack of paid entitlements - A casual employee is not entitled to sick leave or annual leave. This means they will not be paid if they need to take time off work, whether it is for a holiday or because of other circumstances outside of their control. This can affect their ability to meet repayment obligations.

However, this doesn't necessarily mean casual employees can’t obtain a personal loan.

How important is your credit score when applying for a personal loan as a casual worker?

Borrowers with higher credit scores are typically looked at more favourably by lenders than borrowers with low credit scores. This is because credit scores provide lenders with an insight into your borrowing behaviour and allow them to assess the level of risk you may pose should they approve your application.

Casual workers with excellent credit scores tend to have more options available to them when searching for a personal loan as they are able to use their credit history to strengthen their application.

If your credit score is less than excellent, you might consider some of the ways you can improve your score before applying for a personal loan.

Do you know your credit score?

Buying or selling? Learn the value of your home or a property you're looking to purchase.

Get my free estimate

It won’t affect your credit score. How?

Have a profile already? Sign in here.

Find out your credit score on your phone.
Download the app on iPhone or Android

Who offers personal loans for casual employees?

Though casual employees could have a hard time getting a personal loan approved by a major bank or financial institution, many smaller banks and non-traditional lenders may consider personal loans for casual employees who meet their eligibility criteria. While the specific criteria will depend on the lender, it could include the following:

A minimum age of 18.
A minimum annual income, which would vary with each lender.
A minimum period of continuous employment at your current employer, generally between six and 12 months.
An acceptable credit rating.
A minimum amount left over after regular expenses to prove to the borrower that you can service repayments.

What do casual workers need to know about getting a personal loan?

The personal loan application process for casual employees is slightly different from that of full-time employees. Casual workers seeking a personal loan may need to consider several details before signing on the dotted line.

Interest rates - As a casual employee is generally considered a higher-risk borrower, personal loans for casual employees might attract an interest rate that is higher than usual. This is to reduce the risk factor for the lender. For the borrower, it could mean higher weekly or monthly repayments. To be sure you are able to meet these repayments before committing to the loan, consider using RateCity’s Personal Loan calculator.
Assessable income - Lenders know that the income of a casual employee can vary, and in some cases this fluctuation can be significant. To determine a casual employee’s income, rather than looking at their weekly or monthly earnings, lenders may instead assess their income over a three-month period and annualise this figure. For example, if you earned $9000 in the past three months, the lender may assume your annual income is $36,000 for the purpose of the assessment, even if you may potentially earn more or less than $9,000 in the next three months.
Income consistency - On the flip side, if you can prove to the lender that your income is fairly consistent despite being a casual employee, you could potentially have a higher chance of getting approved and your borrowing power may be strengthened. While casual employees have no guaranteed working hours, some could be in a situation where they consistently work 38 hours a week, just like a full-time employee. In this case, the lender may view this favourably.
Essential documents for casual employees - As with all personal loans, casual employees applying for a personal loan will have to provide the lender with various documents to prove their eligibility. These will vary depending on the lender, and could include the following:

Proof of identity, such as a passport or driver’s licence
Proof of income, such as recent payslips and tax returns/notices of assessment
Proof of financial status, such as bank statements and credit card statements

For advice that’s tailored to your circumstances, consider reaching out to a financial adviser or personal loan broker.

Peter Terlato

Personal Finance Editor

Peter Terlato is a content writer with more than a decade of journalism experience. His work has appeared in a number of global publications including finder, Business Insider, Lifehacker and ETB Travel News. He's written extensively about finance, politics, technology, travel and lifestyle. At RateCity, Peter published news and guides across an array of topics, from credit cards and the cash rate to car loans and cryptocurrency.

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

Share this page

Latest personal loans news

Some of the top-rated personal loans in December 2024

How are you handling the cost of living? Some of the top-rated personal loans in November 2024

Some of the top-rated personal loans in October 2024

Latest personal loans articles

Personal Loans

25/11/24 . 6 min read

How much are gutter replacement costs?

Discover the costs of gutter replacement, including materials, installation, and factors affecting pricing. Learn how to choose the right gutters for your home.

Peter Terlato

Personal Finance Editor

Personal Loans

17/09/24

Can you use a personal loan for tax debt?

Did you find this page helpful?

^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

What is a casual employee and how is it different from a part-time employee?

Casual workers generally do not have set or guaranteed working hours. The nature of their work means they will not be paid if they are away from work.

Who offers personal loans for casual employees?

A minimum age of 18.
A minimum annual income, which would vary with each lender.
A minimum period of continuous employment at your current employer, generally between six and 12 months.
An acceptable credit rating.
A minimum amount left over after regular expenses to prove to the borrower that you can service repayments.

Search and compare casual employee personal loans

Find and compare casual employee personal loans

Providers we compare

On this page

What is a casual employee and how is it different from a part-time employee?

Is it harder to get a personal loan as a casual employee?

How important is your credit score when applying for a personal loan as a casual worker?

Do you know your credit score?

Buying or selling? Learn the value of your home or a property you're looking to purchase.

Who offers personal loans for casual employees?

What do casual workers need to know about getting a personal loan?

Share this page

Latest personal loans news

Latest personal loans articles

How much are gutter replacement costs?

How soon after paying off my last personal loan can I get another loan?

Can you pay off a personal loan early?

Can I get a personal loan to pay for my wedding?

Can you use a personal loan for tax debt?

Did you find this page helpful?

On this page

What is a casual employee and how is it different from a part-time employee?

Is it harder to get a personal loan as a casual employee?

How important is your credit score when applying for a personal loan as a casual worker?

Do you know your credit score?

Buying or selling? Learn the value of your home or a property you're looking to purchase.

Who offers personal loans for casual employees?

What do casual workers need to know about getting a personal loan?

Share this page

Latest personal loans news

How long are $3000 loans?

Low Rate Personal Loan Unsecured (Excellent Credit) - $5,000-$75,000

Plenti Unsecured Personal Loan (Fixed) (Exceptional Credit)

Secured Personal Loan (Excellent Credit)

Fair Rate Personal Loan Diamond

Unsecured Personal Loan (Excellent Credit)

Low Rate Personal Loan Secured (Excellent Credit) - $5,000-$75,000

Home Reno Loan Offer- $5,000-$100,000

Unsecured Personal Loan (Excellent Credit)