Personal Loans for All Aussies

If you’ve recently found yourself in dire need of money, then getting a personal loan would be your best course of action. 

But, as an Aussie, what type of personal loan should you get? More importantly, how much will that loan cost you?

Read on to learn all you need to know about Aussie personal loans. 

What this article covers:

What’s an Aussie Loan?

Put simply, Aussie personal loans are secured or unsecured personal loans available to Australian residents and citizens. Typically, they start at $3,000 and can go up to $50,000, though these limits can vary from one lender to another. 

aussie personal loan

Once you take out an Aussie personal loan, you’re free to use the funds however you want. Whether you want to pay for a medical bill or go on vacation, you have absolute control and freedom. 

In return, all you’ll be required to do is make your loan payments on time, following the specified loan term and payment schedule. 

How Much Does an Aussie Loan Cost?

For small personal loans under $2,000, you’ll only be required to pay a 20% establishment fee and a monthly maintenance fee of 4%. No lender can charge you more than this, even if you have bad credit. That’s because all small loans are regulated by the ASIC (Australian Securities & Investments Commission).

For medium-sized loans, between $2,001 and $5,000, you’ll typically have an annual percentage rate of around 48%. You’ll also be charged an establishment fee of around $400.

Finally, for large sums exceeding $5,000, expect an annual rate of around 21.24%, though it can go up to 48%. The establishment fee will be a bit more expensive, but again, don’t expect it to be the same among all lenders. 

Note: Some lenders will have hidden charges and fees. Also, some will set late payment and early payment fees. So, make sure you stay on top of your loan payments at all times. Also, don’t forget to ask your lender about their early payment policies and fees before signing the loan contract.

Secured vs. Unsecured Personal Loans

Before getting an Aussie loan, you first need to understand the difference between secured and unsecured loans.

Secured Loans

A secured loan is when you’re able to borrow money by putting up a valuable asset as collateral. Accordingly, if you ever default on the loan, the lenders can sell your asset to get back part or all of their money. 

Since lenders are guaranteed to get their money back, they tend to offer larger loans with better interest rates and longer loan terms. 

aussie personal loans

Unsecured Loan

Unsecured personal loans pose a high risk for lenders. As such, lenders usually won’t offer as much money, and their fees/interest rates tend to be much higher than secured ones. The loan terms also tend to be shorter to minimise your chances of defaulting as much as possible. 

Should You Get a Secured or Unsecured Personal Aussie Loan?

As you can probably tell by now, secured personal loans are much cheaper and, therefore, better for the borrower. However, that doesn’t mean that unsecured loans don’t have their perks. 

For instance, unsecured loans are very fast to acquire. Since the lender doesn’t have to check your assets and assess their worth, you can get an unsecured loan in a day or less. 

So, ultimately, it comes down to what’s more important to you. Do you need money quickly, or are you willing to wait a bit for a better interest rate? Are you willing to risk your valuable possessions to get better terms, or is this not an option? 

Think about what you want, and choose the type of loan that suits you better. 

How to Get an Aussie Personal Loan

Personal loans for Aussies aren’t too difficult to get. You just need to:

  • Be a citizen or permanent resident of Australia
  • Be at least 18 years of age
  • Have had a steady job for the past 3 months
  • Have an active bank account, email, and phone number

If you fulfil these requirements, all you have to do is fill out the online application requested by the lender. In it, you’ll state your personal information, how much money you’d like to borrow, as well as your preferred loan terms and repayment schedule. 

The lender will then review your application and contact you in some way to confirm your details. If everything is in order, you’ll receive a loan contract in the form of an email or an SMS. Once you sign the contract, the lender will initiate the money transfer, with the funds reaching your bank account in a day or two.

personal loans aussie

Information and Documents Needed for a Personal Loan Application

When you come to apply for personal loans online, you’ll be required to submit a soft copy of the following items:

  • Method of Identification (ID / Driver’s Licence) 
  • Employment details 
  • Proof of income (payslip or income statement)
  • 90-day history of your bank transactions
  • Certain personal details, such as your email, address, and phone number

How Fast Are Aussie Personal Loans?

Thankfully, they’re quite speedy. In fact, personal loans are sometimes dubbed fast personal loans or instant personal loans. 

Basically, once you submit your application, most lenders can have your loan approved and funded in no more than an hour. 

The only exception to this would be when you apply after business hours or on weekends. Nevertheless, you should still receive a response by the following business day. 

Can Bad Credit Clients Get an Aussie Loan?

Absolutely. In fact, personal loans for bad credit are actually quite common. 

Rather than basing their decision on your credit score, some lenders will instead consider your current financial situation and judge whether you can afford the loan or not. 

But you can’t deny the risk they’re taking by loaning you the money. So, expect your loan to have higher-than-average fees and interest rates. 

Keep in mind that you won’t be able to borrow anything over $5,000, though there may be some exceptions. 

aussie loan

Conclusion 

If you’re strapped for cash, getting an Aussie personal loan will solve all your issues. From debt consolidation to home renovation, you can use your loan funds to take care of any issue you’re facing. 

So, once you find a licensed, reputable lender, simply send in your loan application, and you’ll get all the money you need in just a couple of days. 

Was the guide helpful? Check out these extra resources to delve deeper: