Can you get a loan on workers compensation?

Understanding Eligibility While on Workers' Compensation 

Many people on workers' compensation worry that they’ll be automatically ineligible for loans due to their income situation. However, receiving WorkCover payments doesn’t necessarily prevent you from qualifying for a loan. Lenders like Fair Go Finance consider various factors, including your ability to meet loan repayments, your credit history, and the stability of your income through workers' compensation. 

Loan Options Available on Workers' Compensation 

Depending on your circumstances, you might be eligible for a personal loan, which can be used to cover living expenses, medical costs, or other essentials. While each lender has unique requirements, Fair Go Finance works to ensure that applicants on WorkCover can access clear loan options. Here’s what lenders typically look for: 

• Income Stability: Lenders will need verification that your workers' compensation payments will continue throughout the loan term. 

• Proof of Additional Income: If you have other income sources, such as rental or investment income, this can strengthen your application. 

Key Documentation Requirements for a Loan on WorkCover 

Applying for a loan while on WorkCover requires a few key documents to help verify your eligibility. To make the application process smooth, have the following ready: 

1. Proof of Workers' Compensation Income: A record of payments that shows the continuity and amount of income you receive under your WorkCover claim. 

1. Government-Issued ID: Provide a current driver’s licence or passport, along with another form of ID like a Medicare card. 

1. Bank Statements: 90 days of bank statements reflecting your name, address, and income history, to help lenders assess your ability to meet repayment terms. 

By having these documents on hand, you can improve your chances of a smooth application experience. 

Lender Considerations When Assessing WorkCover Applications 

When assessing applicants on workers' compensation, lenders consider a range of factors. One of the primary concerns is income reliability, as lenders aim to minimise risk and confirm your ability to make repayments. Here are some common lender policies and considerations: 

• Income Continuity: Lenders need assurance that WorkCover payments will continue. They may request documentation detailing the duration and stability of these payments. 

• Additional Debt: Lenders may look at any existing mortgages, credit card balances, or other loans. Keeping debt levels manageable can support your application. 

• Loan Processing Time: Due to the need for additional income verification, it’s common for loan processing to take slightly longer. Applying as early as possible can help avoid delays, particularly if you need funds for a time-sensitive expense. 

State and Territory Workers' Compensation Authorities 

Workers' compensation policies vary across Australia, with each state and territory having its own regulatory authority. If you need guidance on your compensation rights or require additional documentation, contact your state or territory’s workers’ compensation office: 

SIRA – Relevant workers’ compensation authority NSW

WorkCover Queensland – Relevant workers’ compensation authority in Queensland

WorkSafe Victoria – Relevant workers’ compensation authority in Victoria

WorkSafe ACT – Relevant workers’ compensation authority ACT

ReturnToWork SA – Relevant workers’ compensation authority SA

NT WorkSafe – Relevant workers’ compensation authority in the Northern Territory

Work Cover WA – Relevant workers’ compensation authority WA

WorkSafe Tasmania – Relevant workers’ compensation authority in Tasmania

Comcare – Relevant workers’ compensation authority

Each authority offers specific support and resources to help you with your claim and gather any necessary documentation. 

Key Points for Applicants Considering a Loan on Workers' Compensation 

For those on workers' compensation, understanding loan eligibility can reduce the stress of managing finances. Here are some important tips: 

1. Report All Work-Related Injuries: It’s essential to document every work-related injury or illness with your employer. 

1. Inform Healthcare Providers: Make sure your doctor or hospital knows that your injury or illness is work-related. 

1. Understand Coverage Details: Review your workers' compensation policy to understand what’s covered. 

1. Adhere to Workplace Policies: Workers’ compensation claims may be denied if an injury occurs while under the influence of drugs or alcohol. 

1. Maintain Integrity: Fraudulent claims are closely monitored, so provide accurate details about your claim. 

Accessing Financial Support with Fair Go Finance 

Being on workers' compensation doesn’t mean you have to face financial challenges alone. If you’re considering a personal loan, Fair Go Finance is here to help answer questions and guide you through the process. Applying for a loan on workers' compensation may take a few extra steps, but with the right information, you can make informed decisions and secure support when you need it most. 

Apply now or reach out to learn more about eligibility and how we can support you while on workers' compensation.