Flexible & affordable personal loans – 100% online

From a luxurious holiday to kitchen renovations and debt consolidation; personal loans can be used to make dreams come true or tidy up a messy debt situation. Either way, they offer low-interest rates, flexible terms, and can be tailored to suit your specific needs. 

How to get a personal loan in Australia?

The easiest and quickest way to get a personal loan is to apply online. Offered by a long list of registered lenders, we've collected and summarised your personal loan options. You can now easily ascertain the interest rates, fees, loans amounts, lending requirements, repayment structures, and terms to help you choose the right loan. 

All registered lenders in Australia adhere to the rules and regulations of the NCCPA irrespective of whether they operate online or in traditional offices. When you work with a registered lender, you can be certain that your rights as a borrower are fully protected.

Types of personal loans 

Personal loans can be divided into two major categories; secured and unsecured. We'll focus on distinguishing loans based on this distinction but there are other helpful classifications. For instance, classifications based on loan terms further split products into short-term, mid-term, and terms loans.

Another way that loans can be distinguished from one another is based on their interest rate structure which includes fixed and variable interest rate structures. 

Secured personal loans vs unsecured options 

Secured personal loans offer two primary advantages: firstly they offer you a larger loan amount and secondly, a lower interest rate.

This makes them ideal for projects such as renovating your home and financial clean-up strategies such as debt consolidation. You can also use a secured personal loan to purchase a vehicle. 

Secured loans require you to put up an asset as security. This is usually either a property that you own or have a decent amount of equity in or the car that you're buying. Some bad credit lenders also let you put up your vehicle as security for a personal loan.

Deciding whether or not to secure your personal loan depends on what your credit history looks like, how much you want to borrow, and of course, whether you have an acceptable form of security to offer. 

Short and long-term loan options

Repayment terms range from 16 days to 7 years and will be set based on your lending needs and profile. Under the current regulations, terms cannot be shorter than 16 days. In this category, you'll find quick loans, payday loans, car loans, and other short-term loans. Technically speaking credit cards and overdraft facilities belong to this category as well, even though they are lines of credit rather than loans.

The short and long-term loan amounts range from as little as $1,000 to as much as $100,000. While some lenders specialise in the provision of large loan sums with longer terms other only provide short-term options up to $10,000. 

The amount which you can borrow is determined by your ability to pay back the loan given your income and existing debt (with consideration for the interest and fees).

How much can I borrow? 

A personal loan will typically allow you to borrow anything from $2,000 to $50,000 based on a handful of factors. These include your affordability, credit rating, loan type (whether secured or unsecured), and the specific products on offer from lenders.  

Can I afford a personal loan?

Lenders are required to conduct affordability assessments on their customers before approving a loan offer. While this may provide a level of safety that ensures those who are struggling are driven deeper into debt, it's not foolproof.

This is why you need to take responsibility for your finances and conduct your own affordability assessment. You should list your incomes and expenses to reveal your surplus (and therefore what you can afford to repay in installments). The easiest way to determine how much you can borrow (and for how long) is to make use of our personal loan repayment calculator.

You need to calculate the total amount of money which you will have to pay back and ensure you can also afford the regular repayments. This will help you to make a final decision on the affordability of the loan.

Lenders in Australia are free to meet the responsible lending obligations in their own individual way. The assessment process of one lender may determine you to be an eligible applicant for a specific type of loan and loan amount while the process of another may show that you are not eligible for a similar product and the same loan amount.

What do you need for a personal loan?

While each lender will have its own set of requirements and these will change based on the details of your personal loan, there are some standard requirements that apply across the board.

To qualify for a loan you must:

  • Be over the age of 18 
  • Be a citizen or permanent resident of Australia (and currently residing in Australia too)
  • Be employed and learning above the minimum required for a particular loan amount 
  • You must be able to demonstrate loan affordability (this will be based on your credit score and debt-to-income ratio

In addition, you'll be required to provide supporting documentation which includes an acceptable form of ID, proof of address, your most recent bank statements, and payslips. You'll also have to provide your personal, employment, and financial details as per the lender's application process. 

Personal loan comparison 

Always check the interest rate

Interest rates vary from one lender to the next and will be further tailored based on your credit rating and needs. With great credit, you can expect interest rates from 3% to a fair 6% on secured loans while those with bad credit lenders can expect rates to soar as high as 36%.

You must check the interest rate. While rates are usually high for short-term loans, you could save quite a bit of cash by comparing products online. You should consider the interest rate and any other charges as well.

That said since 1st July 2013, fee caps are applied on loans of small to medium size provided by lenders which are not Authorised Deposit-taking Institutions (ADIs). This means that you can rest assured that there is some level of protection available to you. 

Consumers in Australia are protected by the National Consumer Credit Protection Act 2009 when they borrow money. Lenders are legally required to present the full loan information to consumers in order to enable them to make well-informed decisions.

Personal loans for bad credit 

Lenders typically take into account the individual credit risk of each loan applicant when they determine the interest rate. A higher risk corresponds to a higher interest rate so those with bad credit may end up with interest rates as high as 36%.

Long-term loans offer terms of up to 7 years so if you're looking for lower installments that take your affordability into account you'll be accommodated. These loans are generally secured. Typical security is a property or vehicle which the lender has the right to repossess in the event that you default on your loan repayments.  

The National Consumer Credit Protection Act 2009

All licensed credit providers in Australia must follow the responsible lending conduct obligations defined in Chapter 3 of the NCCPA 2009. For this, they need to evaluate the financial situation, requirements, and objectives of each applicant and determine whether the loan is suitable for the person.

When you apply for a loan to a licensed credit provider, the lender will perform a thorough check on you. The assessment will be based on your income, existing debt, and credit history. You'll stand the best chances of approval if you have stable employment and income, a low debt-to-income ratio, and a good credit record.

Personal loans are easily accessible

Especially to consumers who have stable employment income, low debt, and good credit history. They are among the most useful tools for financing purchases and resolving cash emergencies. However, they're not suitable to use for the repayment of existing debt since they're usually unsecured and this results in higher interest rates.

In order to make an application for an online loan, you need to fill out the respective form available on the website of the lender. The lender will use your personal details to perform a credit check. Any documents which are required as part of the application process can be instantly uploaded or, you can opt to have your bank statements retrieved automatically. Loan contracts can usually be signed digitally

How long does personal loan approval take? 

It's possible for you to have the funds in your bank account in just a few hours after submission. If you're lucky enough to have a provisional personal loan offer with your existing bank, you'll likely get your loan within minutes of accepting the terms. 

For larger, secured loans you may have to wait for a variety of checks to be performed before you'll receive a loan offer and agreement to cement your deal. Depending on the nature of the security as well as the lender's policies this may take up to 48 hours. 

Ready to find your ideal personal loan? Have a look at our collection of local lenders below and find an option that's not only competitive cost-wise but also meets your needs.