Beneficiary Personal Loans

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Personal loans for beneficiaries are generally short-term personal loans with a much lower maximum borrowing limit than standard personal loans.

If you are currently receiving Work and Income New Zealand (WINZ) payments, you may be able to first request an advance payment in the case of emergency costs.

How to get finance while receiving a benefit

There are many additional payment support options available through WINZ that you may qualify for, which you may wish to consider before continuing further and applying for a beneficiary loan with a lender. 

You can contact WINZ online by using MyMSD or speak to a support member directly by dialling 0800 559 009. 

The general enquiries helpline is open Monday to Friday from 7 a.m. to 6 p.m. and Saturdays from 8 a.m. to 1 p.m.

If you have existing debts, you can speak to a specialist support member from the WINZ Debt Management team on 0800 558 008, Monday to Friday, 9 a.m. to 5 p.m.

You can qualify for a beneficiary personal loan in New Zealand if you are:

  • 18 years or over
  • Can demonstrate an ability to repay the loan amount or can provide a guarantor
  • A permanent NZ resident or hold a work permit or visa allowing you to reside in New Zealand

If you meet the standard qualifying criteria for a personal loan, you can calculate how much you can borrow and compare lenders to find the best loan offers available in New Zealand before applying for a loan.

See How Much You Can Borrow

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How to apply for a personal loan if you’re receiving a benefit

If you don’t meet the standard criteria for personal loan approval, another option is to consider including a guarantor as part of your application. A guarantor is someone who agrees to take responsibility for the loan repayments should you be unable to.

Guarantors also use the value of their own borrower profile (and available collateral), to show stability to the lender and potentially help an applicant get approved for a loan, usually when the applicant cannot gain approval by themselves.

If you are applying for a beneficiary loan using a guarantor, it’s important to understand that your guarantor will be legally responsible for the loan repayments should you be unable or unwilling to make them.

This can also affect the guarantor in a number of other ways:

  • They will need to disclose information about their role as guarantor on your loan if they choose to apply for any other form of finance before the loan is repaid in full
  • Any collateral or security owned by the guarantor that is used to secure your loan cannot be used as security on another loan until your loan is repaid in full
  • Any collateral or security owned by the guarantor that is used to secure your loan cannot be sold or altered by the guarantor until your loan is repaid in full

Due to these restrictions, and the ongoing legal responsibility of the guarantor to the loan repayments, guarantors are often close family members or a trusted person you have an extensive, established relationship with. 

You should first sit down and talk openly with your potential guarantor to ensure they understand their responsibilities, how it may affect their own future credit applications, and that your relationship is stable enough to remain unaffected by both of these throughout the term of your loan. 

If you're experiencing financial hardship and struggling with debt, you may find speaking to a financial expert can help determine your next steps.

You can speak to an expert for free by calling the MoneyTalks helpline operated by FinCap on 0800 345 123.

MoneyTalks Helpline operates between 8 a.m. and 5 p.m. Monday to Friday, and between 10 a.m. and 2 p.m. on Saturdays.

See If You Qualify For A Beneficiary Personal Loan

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