Funeral loans

What is a Funeral Loan?

A funeral loan is an unsecured personal loan that can cover any costs that are related to the funeral or burial of your loved one. Because these personal loans are unsecured, it means that you won’t need to put security up or have the bank or lending institution directly pay the costs to the provider. Instead, the approved amount will be deposited directly into your bank account, and you can pay the bills or costs as you need.

These loans are very quick to apply for, and money is deposited very fast, too. Both the speed of our funeral loans, and the simple process allows some of the stress to be removed from your shoulders as you mourn the passing of someone close to you. Whether you’ve prepared yourself for a terminal death that you knew was coming, or if the passing was sudden, bereavement is an emotional process, and finances shouldn’t add extra weight.

Different Types of Funeral Loans?

At City Finance we have two different types of funeral loans available to help you commemorate your loved one’s life.

The first is a smaller loan that works well for smaller expenses, like if you need a little extra money to cover funeral costs, or if you’re considering an intimate burial. The second type of funeral loan we offer is costly treatment in mind for works well for those who have a bigger funeral to accommodate for.

Below are our two types of funeral loans:

• A SACC (small amount credit contract)

With this type of funeral loan, you can borrow between $500 and $2,000. The cost is a 20% upfront establishment fee (split across payments) and monthly fees of 4% for maintenance.

• A MACC (medium amount credit contract).

If you’re looking to cover costs that exceed $2,000, you can opt for a MACC. With a MACC you can loan between $2,001 and $5,000. You will be charged a flat upfront $400 establishment fee (split across payments) and a 48% annual percentage rate. With this option, there are no monthly fees for maintenance.

Am I Eligible for a Funeral Loan?

At City Finance, we are very flexible with our lending criteria. Even if other lenders have knocked you back, there’s a good chance that we can still help. We’ve lent money to thousands of people that haven’t met the requirements elsewhere. For example, those with a bad credit history, who are on government benefits, or are newly self employed.

Grief doesn’t pause for credit scores. Our loans for funerals bad credit ensure that even if your credit history isn’t perfect, you can still secure the funds you need. We consider your current income, whether it’s a wage, Centrelink payment, or pension, rather than relying on rigid credit checks. This means more Australians can access a funeral loan quickly, with a compassionate approval process that respects your circumstances.

As long as you are aged 21 or over, can show proof of income (this can be in the form of a job payment of government benefits) and can provide a small amount of supporting documentation, then you’re probably eligible for a loan with us. Below, we expand more on the type of supporting documentation we need in order to accept a funeral loan application.

If you’re unsure of your eligibility please feel free to reach out to our customer service here.

What supporting documents and information do we need to process your dental loan application?

At City Finance the process of applying for a funeral loan is simple. We don’t need a large amount of different documents, all we require is the following:

1. A copy of your ID
2. A short application form with details such as your address and phone number
3. Proof of your income (either wages or Centrelink benefits)
4. 90-day history of bank transactions

City Finance’s funeral loans come with a choice: select weekly, fortnightly, or monthly repayments that align with your budget. Our team works closely with you to set up a plan you can manage, avoiding harsh catch‑up fees or penalties. If your circumstances change (such as additional memorial costs or travel expenses to gather family) you can speak to us about adjusting your loan term or applying for a top‑up.

Why Choose City Finance for a Personal Loan?

We move quickly

Often death can be sudden, and in a situation like that, those closest to the deceased won’t have the time to prepare financially for a funeral. And, it’s not an event that can be put off while funds are saved.

The application and approval time for our loans is very quick, as is the time it takes for the funds to be deposited into the applicant’s account. This means that you can receive the money quickly, so that you can pay for the necessary components for the funeral as soon as you need to.

Inclusive lending

Less than perfect lending requirements – like having a low income, being unemployed or having a bad credit history – shouldn’t rob you of the opportunity to be able to lay your loved one to rest in the way they deserve.

We lend to many applicants that may be turned away by other financial institutions with stricter lending criteria. So, if you’re looking for a funeral loan but are worried that your applicant will be denied your history, you shouldn’t be.

Adjustable terms

We don’t do blanket loans – we’re able to adjust our terms so that it can suit your personal situation. This means you can choose a specific loan amount you need (between $500 and $5000), as well as tailor the repayment frequency and loan length, so that you can meet your payments best.

We also pride ourselves on not having any hidden fees or charges, or early exit fees – all of the terms are set out clearly in the loan contract which you will need to review and sign before final approval of your loan.

Trusted lender

When you’re mourning, you shouldn’t have to take the time to investigate different lenders to find out which is reputable. At City Finance, you’re in trusted hands. We are very well established and a leader in the lending industry. You can trust that you are borrowing from a well-known and trustworthy lender. For further clarification, check out what our customers have said about us in our glowing reviews.

Hassle-free borrowing

At City Finance, we’ve worked hard to keep things simple for our customers. When borrowing from us, you needn’t worry about repayment dates and transferring the money over. Instead, we have a direct debit system that will automatically deduct the repayment amount from your nominated bank account on its due date.

Flexible

We know that things happen that may get in the way of you being able to meet your repayment amount on the due date – especially if the loan itself was unexpected in the first place. If this happens, we encourage our customers to reach out to one of our team members. Our staff can chat with you to figure out a contingency plan with repayment loan amounts and dates that are attainable for you.

What Funeral Costs Can I Use a Personal Loan For?

Funeral expenses for a small, intimate burial

When it comes to a funeral, some people are well suited to a huge happy celebration, while others would prefer a very intimate burial with only their nearest and dearest. If the funeral of your loved one falls into the latter category, then you’ll be looking for something small and understated. Everything that’s required for an intimate burial can be covered with a funeral loan, and the balance can be paid off gradually with periodic repayments as your budget can afford.

Funeral expenses for a large celebration of life

While some people prefer a small funeral, others want a large celebration of their life, where their many friends and family can say their final goodbye. A large funeral can be very expensive, but as a final wish it’s an expense that’s rightful. If you want to provide the perfect celebration for someone close to you, but don’t have the finances to cover it, a funeral loan can help.

Wake expenses

In life, everyone has different wants and desires, and the same sentiment can be carried through to their final goodbye. While some prefer to avoid a wake altogether, others see it as a way to celebrate and commemorate the joy that person brought to many people. Of course, the cost of a venue, food, drink and flowers can add up significantly. This is where a funeral loan for wake expenses can help provide the funds for a deserving wake for the deceased.

Cremation

Again, funerals are a personal choice, and there are a range of different ways to lay your loved one to rest. Some people will list cremation as their wish, and desire to have their ashes left with a loved one sprinkled somewhere significant. However, cremation is an expensive process and can cost thousands of dollars. If it’s an avenue you want to take, a funeral loan can help you afford a cremation immediately.

Gap bridging

Whether a loved one’s death is sudden, or gradual, you may have some savings tucked away that are able to cover the majority of the costs for their final good bye. However, if you’re a little short on money, you shouldn’t have to compromise on their funeral by skimping on certain things. Instead, you can take out a personal loan that can bridge the gap between your savings and the total amount of the funeral.

Funeral director fees

For most funerals that are on the larger side, the help of a funeral director can make the process a lot more straightforward and less stressful. However, funeral director fees can be a significant cost. If you’re unable to afford the expense of a funeral director fee, but believe that one would be helpful, then a funeral loan can cover their fees and allow you to pay the balance back