Looking for Trade Support Loans? Here’s What You Need to Know

Andrew Bell

Last updated: July 30, 2020

• 9 minute read

9 minute read

Income support for apprentices

Have you been googling ‘trade support loans’? Not exactly sure what an apprentice or trade support loan is or how you could get one? Well, luckily Nifty has done the research for you! An apprenticeship can be stressful, especially when it comes to managing your money. Maybe an emergency expense has thrown your budget into chaos or perhaps you just need an income boost. For whatever reason, you may just need a little cash flow to see you through the rest of your training. 

In this article, we’ll run through everything you need to know about financial support for apprentices here in Australia. So, before you jump into anything, keep reading to get the lowdown on what support options could be available to you. Check out small loans information on Nifty here.

What is a trade support loan? 

A trade support loan is a loan paid for in instalments that can add up to as much as $20,000. These loans are paid over the life of an Australian Apprenticeship and are designed to assist apprentices with the cost of living while they complete their trade. Eligible Australian apprentices can apply for regular cash instalments according to their individual needs.

Who is eligible for a trade support loan?

You could be eligible for a trade support loan if: 

• You are studying a Certificate III or IV qualification that leads to an occupation listed on the Trade Support Loans Priority List; or
• You are studying a Certificate II, III or IV agricultural qualification specified on the Trade Support Loans Priority List; or
• You are studying a Certificate II, III or IV horticulture qualification specified on the Trade Support Loans Priority List in rural or regional Australia – the Trade Support Loan Rules specify a list of postcodes for rural or regional areas of Australia; and
• You are an Australian citizen or permanent resident.

Trade Support Loans Priority List

An Australian apprentice may be eligible for a loan if they are undertaking a Certificate III or IV in one of the following occupations:

Can existing apprentices get a trade support loan? 

Yes, existing apprentices can choose to opt-in for a trade support loan in line with their year of apprenticeship. So, if you find yourself in need of some financial assistance later in your apprenticeship, you may be able to get a loan.

How much can I borrow? 

With a trade support loan, the borrower has the power to choose how much they would like to borrow and what to spend their money on. Apprentices are able to opt-in and out of the loan at any time. 

It is possible to borrow as little as $1,000 or take advantage of the full $20,000 over the term of your apprenticeship. However, the loan amounts are highest in the earlier years of training when apprentice wages are at their lowest. Overall, payments have annual limits of: 

• $8,000 in years one; 
• $6,000 in year two; 
• $4,000 in year three; 
• $2,000 in year four.

What can I spend a trade support loan on? 

A trade support loan belongs to the borrower, so you can pretty much choose what you’d like to spend it on. That said, whatever you spend you will have to repay. So, you might want to keep that in mind when considering how to spend the money and what to spend the money on. A few common expenses include: 

• Purchasing work gear, tools or boots;
• Living expenses like rent, phone bill, transport.

How is a trade support loan repaid? 

Trade support loan repayments are pretty straight-forward. Much like a HECS debt at university, you will only start repaying a trade support loan when you are earning a sustainable income of more than $50,000. Repayments are made through the tax system and if you notify your employer they can make repayments automatically. 

The amount repayable each year is a percentage of your income. The percentage payable will increase as your income increases. Essentially, the more you earn, the more you pay. The Australian Taxation Office (ATO) will calculate the compulsory amount payable on your trade support loan and include it in your income tax notice of assessment.

Here's a Nifty fact!

Apprentices will not have to repay the loans until they are earning an income above the minimum repayment threshold ($45,880 for 2019-20)

How to apply for a trade support loan

You can apply for a trade support loan through your Australian Apprenticeship Support Network (Apprenticeship Network) provider when you begin your first year as an apprentice. After that, you can ‘opt in’ every six months. If you want to cancel your loan, you can opt out at any point during your training. 

What are my other options?

When it comes to finance, there are a variety of other options available for applicants over the age of 18. The simplest trade support loan alternative is a personal loan. You could apply for personal finance with a bank, credit union or online lender. In most cases, you’ll need to be over the age of 18 to apply with a financial institution though. So, if you’re starting your training during your schooling, a government-backed loan might be the way to go. Either way, you should always do your research to ensure a loan is the right option for you.

Nifty Personal Loans

Nifty is the online lender changing the game for Aussies seeking fast finance. We lend cash between $300 and $10,000 to applicants who are over the age of 18. One of the best things about Nifty is that we’re 100% online. That means you can apply for a personal loan wherever you are and whenever you like. If you submit your application during AEST business hours, the Nifty team will conduct a speedy assessment and get back to you with an outcome. 

Above all, Nifty is an open-minded lender. What does that mean? Basically, it means we’ll do our best to match you with an appropriate loan product even if you have a subpar credit score. Our team will take a realistic look at your finances to determine whether your current financial situation supports a personal loan. So, if even if you’ve made some mistakes in the past – don’t stress. Nifty could be the lender for you!

Just to be clear; Nifty does not offer trade support loans as described above. But we can offer a range of other types of personal loans that you may find helpful.

Who can apply for a Nifty Loan? 

At Nifty, we keep our application criteria as simple and straightforward. You will, of course, have to meet a few simple application criteria. All applicants must: 

• Be over 18-years old;
• Hold Australian citizenship or permanent residency;
• Be receiving a regular income for at least 3-months;
• Have an active mobile number and email address.
• Have income paid into a personal bank account

Paperless application! 

At Nifty, we are sparing the environment – and you – the trouble. Our application process is completely paper-free. That means you can apply online from anywhere within Australia. All of the required documentation can be submitted online. 

Here is what you should have handy: 

• Personal contact details e.g. active mobile number and email address;
• The reason for your loan;
• Internet banking details;
• MyGov details (if applicable);
• Employment details.

Will Nifty do a credit score check? 

Yes, in most cases the Nifty team will conduct a credit score check when you apply for a personal loan. Why does Nifty do a credit score check? As a part of our commitment to responsible lending, Nifty is required to conduct a credit score check to ensure applicants will not be under financial hardship if approved for a loan. 

If you’ve got bad credit, don’t let this deter you. Our team will consider more than just the result of your credit score check. We’ll keep an open mind whilst assessing your entire financial situation. If we can see you have made a considerable effort to reconcile bad credit you could still be eligible for a loan.

How do I apply for a Nifty loan? 

If you think a Nifty little loan could be right for you then you’ll be pleased to know that an application could take all of a few minutes to complete. Here is what you’ll need to do: 

1. Apply online 

Use the loan calculator at the top of the page to choose your loan amount and the repayment period. You will then be able to see what the weekly, fortnightly or monthly repayments could be on your preferred loan amount.

2. Fill out the form 

We will need a few important details from you to properly assess your loan application. That’s where our 100% online application form comes in. It could only take you a few minutes to complete – all required documentation can be submitted online. Keep in mind that if you submit your application during AEST business hours our team will do their best to get back to you in 60 minutes with an outcome. 

3. We assess your application 

Our team will conduct a thorough and fair assessment of your personal loan application. We’ll determine whether or not you will be able to afford the repayments on a loan and do our best to get back to you as soon as possible. 

4. Sign your agreement 

If the Nifty team has successfully matched you with a personal loan product we’ll send over an agreement for you to review and sign. We encourage all borrowers to read through their contract carefully and make themselves aware of the full terms and conditions.

5. Get your cash 

As soon as we receive a signed copy of the loan agreement, the Nifty team will deposit the funds straight into your account. Instant banking is now making it possible for borrowers with NPP or Osko enabled bank accounts to have cash in their account and ready to use in just 60 seconds. So, you may even receive your funds within the same day!    

Keep reading

Enjoyed this article on trade support loan options? At Nifty we cover a wide range of topics over on our blog. Check out some of our latest stories on managing stress and getting to know your credit rating.