Loan applications appear on your credit report even if you're rejected, so it's important to know whether you're eligible before you apply.
Personal loan eligibility criteria can include your income, your type of employment and your credit score.
You will find it harder to get a personal loan if you have bad credit, but there are providers that can cater for that.
What is the eligibility criteria for a personal loan?
Not all lenders are alike, so the eligibility criteria will differ from lender to lender. Some may be more flexible when it comes to alternative financial circumstances than others, but it's best to check first. You can also call the lender if you have any doubts.
Age and residency. No matter which personal loan you're applying for, you'll need to be over the age of 18. You will also need to be either an Australian citizen or permanent resident. There are personal loans for those on working or temporary visas, but there will be additional requirements.
Income. Lenders may have a set minimum income that you need to earn, for example, $35,000 p.a. Or they may only require that you earn a regular permanent income. In the case of the latter, you need to consider whether the loan you're applying for fits comfortably within your current budget.
Employment. If there's an employment requirement, you may need "regular" employment, as opposed to casual employment. If you're casually employed, or work part-time, there are loan options available. If you're self-employed, you may be required to provide additional details. You may also be required to be in your role for a particular period of time.
Assets, debts and expenses. You will be asked to list your assets, debts and expenses on your application. This will inform the lender's decision as to whether to approve your loan. Assets may boost the strength of your application. Credit cards, store cards or other loans may hinder your ability to borrow. Expenses are always estimated but lenders generally have a good idea when you're under or overestimating based on data of other customers.
Credit history. You generally need good credit history to apply for a personal loan, especially with a traditional bank. If you do have a few negative marks, your current bank may be open to lending if you have good transaction history. If not, you should look at bad credit personal loans.
Loan security. If you're applying for a secured loan, such as a car loan, your secured asset may also need to meet certain requirements. For instance, the vehicle you use as security may need to be under a certain age or of a certain value. Some lenders only finance new cars, but you can also find options for used cars.
Centrelink. Centrelink income may be accepted as a form of income, but there will be restrictions. You will also need the majority of your income from another source, and will have to meet the minimum income requirement. It's best to be certain that the lender accepts Centrelink incomes before applying. If you have any doubts, contact the lender.
If you're going through the process of bankruptcy or have declared bankruptcy, you may find it difficult to apply for a personal loan. You can read more about it here.
Work out your borrowing power
Even if you think you meet the eligibility criteria for a personal loan, lenders still need to assess whether you can service the loan. For that reason, it's important to work out how much you can reasonably borrow before you try to apply. If you try to borrow too much compared to your income, you will not be approved for the loan.
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How we picked these
Personal loan statistics in May 2025
The lowest unsecured rate is 5.76% and the average is 10.88%.
The lowest secured rate is 5.90% and the average is 9.78%.
The average Australian is carrying $20,311 in personal loans (including car loans).
Most people take out personal loan terms of 3 years.
4% of Australians say personal loans cause them financial stress.
*The information in this update comes from Finder's loans database and Consumer Sentiment Tracker. Information is correct as of 6 May 2025.
How can I get approved for a personal loan?
There are a number of things you can do to help get your application over the line. These include:
Maintaining good account history. If you're applying with a bank and the personal loan isn't time sensitive, having good banking history can help with your application. It can also speed up the application process. You should also ensure you pay your bills on time and your account doesn't go into arrears.
Don't apply for too much. Make sure the amount you're applying for fits within your budget. Don't apply for more than you can afford or need. Even if you can afford it, you're paying interest on every dollar.
Maintain a good credit rating. Pay your bills on time and take care of any debts you owe.
Show you can save. Having a good savings record will tell the lender that you're responsible with your money. It's also a good indication that you're able to manage money and regular loan repayments.
Reduce the limit on your credit card. If you're not using your entire credit card limit, consider lowering it. You'll need to list the total limit of your credit cards in your application. They will treat it as potential debt, even if you don't use up the entire limit.
Pay off some of your debt before applying. If you owe anyone money, or if you have ongoing credit card debt, try to pay down your debt. Making regular repayments shows you're a responsible borrower and likely to meet your personal loan repayments.
Apply after you're past your probation period. Lenders may be unwilling to give you a loan during your probation period. They may not approve the loan if you haven't been employed for at least 3 months, no matter how secure the role. Make sure you're out of your probation period before applying.
Do keep in mind that no personal loan application is guaranteed, even if you meet the criteria. The above guide is to ensure you're giving yourself the best chance to get approval.
What do I do if I have bad credit?
There are a number of options if you have bad credit. These include:
Apply for a bad credit personal loan. Bad credit personal loans are typically more expensive. There are also secured loans you can apply for if you have an asset. You can read more about it here, but also keep in mind that some of the options listed are expensive.
Work on improving your credit score. Your credit score is updated every month. This means that everything you do now, can help improve your score. It's best to wait until your score improves before applying. To improve your credit score, you should look at paying all your bills on time, pay off as much debt as you can, and lower your credit card limit. You should also avoid applying for too many loans, as this can further affect your score. You can read more about it here.
Our expert says: Check your credit score
"Our lender partners tell us that one of the biggest mistakes potential borrowers make is not checking their credit score. Lenders will have eligibility criteria around the minimum credit score a borrower must have. It's imperative that you check your credit report before you apply, because any failed applications will show on your file and make it harder to apply again in future.
Most lenders require you to have a credit score above 600 or 700, while some will accept as low as 500. Anything below this is unlikely to be approved but it doesn't mean it's the end of the road for you. Once you've downloaded your credit report and understand your score, you can take steps to improve it and have a higher chance of success in the future.
Read through your credit file to check if there are any incorrect marks against your name, make sure you pay your bills and other repayments early or on time, and work to close any other debt accounts you might have."
Applying for the first loan you see. You won't know if you're getting the best deal if you apply for the first loan you find. Compare your options first and make a shortlist based on cost, terms and eligibility.
High rates and fees. Some personal loans, especially payday loans, come with high rates and fees. These loans are expensive, and you should only consider them if it's a financial emergency. You should make sure you can afford the loan before applying.
Borrowing more than you can afford. Check the cost of the loan and make sure you can afford it. You should be comfortably able to include your repayments in your budget. You should also avoid borrowing more than you need.
Splurging. Most personal loans involve lump sum payments. You may be tempted to use it all up and buy more than you need. Stick to a budget and avoid spending beyond what you planned for. Remember you pay interest for every dollar you borrow.
Multiple applications. Every loan application shows up on your credit report. Several applications within a short period can have a negative impact on your credit score. This can make it harder for you to get a loan in the future. Select a single loan and lender that you're eligible for and that suits your needs. If you've already applied for legal finance, give it a few more days or contact the lender before applying elsewhere.
Long-term repercussions and legal issues. Once you sign a loan agreement, you are bound to its conditions. You will have to pay the loan and all the fees and payments. Keep in mind that for unsecured loans, the lender can initiate legal proceedings against you if you don't repay the loan. It can also report the debt to a credit reporting body like Equifax and use the services of a debt collector. With secured loans, your loan security can be repossessed by the lender if you fail to make your repayments.
How can I apply for a personal loan?
1. Calculate your borrowing power. Work out what type of loan you need, how much you need to borrow and what you can afford. You can use a personal loans calculator to help you.
Start comparing lenders. You can use the comparison table on this page. Don't forget to compare interest and comparison rates and find a loan you're eligible for.
Select a lender. If you're using the comparison table, you can click "Go to site" to be directed to the lender's page, or "More info" if you want to read up on the lender.
Organise and prepare the required documentation. Gather documents like your passport or driver's licence, your payslips and bank statements. This will make the application process easier.
Apply. Most lenders have their applications online.
Frequently asked questions about personal loan eligibility
The basic criteria for a personal loan typically include being at least 18 years old, having a regular source of income, being an Australian citizen or permanent resident, and having a good credit history. Lenders may also consider your debt-to-income ratio and employment status. Meeting these criteria increases your chances of loan approval.
The minimum credit score required for a personal loan varies by lender, but generally, a score of 600 or above is considered sufficient for most lenders. However, a higher score, typically above 700, can help you secure lower interest rates and better loan terms. Some lenders may approve loans for borrowers with lower scores, but often at higher interest rates.
The difficulty of getting a personal loan depends on your financial situation and the lender's requirements. If you have a good credit score, stable income and low debt, it can be relatively easy to get a personal loan. However, if you have a poor credit history or irregular income, it might be more challenging, and you could face higher interest rates or stricter terms.
The minimum loan amount for a personal loan typically ranges from $2,000 to $5,000, depending on the lender. Some lenders may offer smaller loan amounts, but this is less common. The specific minimum can vary, so it is important to check with individual lenders to find a loan that suits your needs.
The 5 easy steps to get a personal loan are: 1) Check your credit score - you can do that for free on the Finder app 2) Compare loan options to find the best rates 3) Gather necessary documents (e.g., ID, proof of income) 4) Submit your application online or in person, and 5) Review and sign the loan agreement once approved. Following these steps helps streamline the application process.
Loan eligibility refers to the criteria that a borrower must meet to qualify for a loan. This typically includes factors like age, income, credit score, employment status and residency. Lenders assess these factors to determine the borrower's ability to repay the loan and the risk associated with lending to them.
Why compare personal loans with Finder?
Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024. See full bio
Elizabeth's expertise
Elizabeth has written 210 Finder guides across topics including:
If you're wanting to bolster your application, buy an asset with your partner or apply for a loan you're not eligible for by yourself, you can consider a joint application personal loan.
Find a low interest loan by comparing your options with Finder. See interest rates, fees, and features for loans across Australia, plus guides to help you get the best deal.
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Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest. 
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.