appren1

Loans for apprentices

Rates and fees last updated on

Find out more about Trade Support Loans, youth allowance and other credit options available to you during your apprenticeship.

If you've started out on an apprenticeship or plan to do so in the near future, you may need to take out a loan to help you manage your finances. In Australia, you’ve got multiple loan options to choose from. The Australian Government offers apprentices Trade Support Loans and there are also apprentice and standard personal loans offered by major banks.

Find out about your options in this guide.

What are my loan options as an apprentice?

There are a few loan options available to apprentices:

  • Trade Support Loan. If you get a Trade Support Loan from the Australian Government you don't have to make repayments until your income reaches a minimum income threshold, which could be any time in the future or possibly never.
  • Personal loans. If you're looking to purchase a vehicle or need something else during your apprenticeship, you may be considering a personal loan from a bank or lender. Some lenders will consider apprentices for loans and you may even be able to take advantage of interest rate discounts.
  • Youth Allowance, Austudy and ABSTUDY. Apprentices aged between 16 and 24 may be eligible for Youth Allowance, while those aged 25 and over may be eligible for Austudy. ABSTUDY is available for apprentices of any age who are Indigenous Australians.

How do I compare my apprentice loan options?

  • Interest. Trade Support Loans don't attract any interest and, in addition, if you complete your apprenticeship you receive a 20% discount. This essentially means you only repay 80% of what you borrow. Loans for apprentices offered by banks can attract fixed or variable interest rates. Youth Allowance, Austudy and ABSTUDY are government allowances and not required to be paid back.
  • Loan amount and term. You can get up to $20,000 through a Trade Support Loan and the Tools For Your Trade loan offers up to $5,500. The latter comes in the form of a grant that you don't have to repay. Funds for the Trade Support Loan are disbursed in stages over four years. You have to start repaying it only after your income reaches a minimum income threshold. Just how much you can borrow from a bank is up to any given bank's discretion, while the loan term in such cases is normally in between one to seven years.
  • Fees. While most loans for apprentices do away with the majority of fees, this is not always the case and some loans end up charging establishment fees, disbursement fees, settlement fees and early exit fees.
  • Features. If you're taking an apprentice loan from a bank, find out if it allows you to make extra repayments without charging penalties. This feature allows you to pay your loan off sooner. If your lender allows you to make extra repayments, find out if you can redraw this money if you need it in the future. You can also look for a loan that is part of a package which includes a cheque account and a debit card.

What are the benefits of a Trade Support Loan?

  • Means to better skills. If a lack of money is keeping you from getting an apprenticeship and furthering your career, you can easily turn to an apprenticeship loan or a student loan to take care of your finances and set yourself on a path to a better future.
  • Flexible loan purpose. In most instances, you can use the funds you receive through such loans for different purposes like buying tools of the trade, buying used vehicles and even taking care of everyday living expenses.
  • Repayment flexibility. In many instances, you don't have to start making repayments until you start earning or until your income reaches a minimum income threshold. When it comes to making repayments, you can choose from making weekly, fortnightly or monthly repayments. In addition, extra repayments are also allowed.

Loan options for casual and part-time employees

What income do I need to receive to be eligible for a personal loan?

Banks and lenders usually have set minimum income criteria for you to be eligible for a personal loan. Take a look at the loan options below to see if you meet the income requirements:

LenderLoan typeMinimum incomeLearn more
act.Unsecured Personal LoanNo minimumMore
ANZPersonal Loan$15,000 p.a.More
BankwestUnsecured Personal LoanNo minimumMore
Bank of MelbourneUnsecured Personal LoanNo minimumMore
BankSAUnsecured Personal LoanNo minimumMore
bcuUnsecured Multipurpose LoanNo minimumMore
Bendigo BankUnsecured Personal LoanNo minimumMore
CitibankReady Credit$40,000 p.a.More
Commonwealth BankUnsecured Personal LoanNo minimumMore
CUAPersonal LoanNo minimumMore
IMBPersonal LoanNo mimumumMore
Latitude FinancialPersonal Loan$24,000 p.a.More
ME BankPersonal LoanNo minimumMore
NABPersonal LoanNo minimumMore
RACQUnsecured Personal LoanNo minimumMore
RACVPersonal LoanNo minimumMore
RateSetterPeer-to-Peer LoanNo minimumMore
Society OnePeer-to-Peer Loan$30,000 p.a.More
St.GeorgeUnsecured Personal LoanNo minimumMore
WestpacUnsecured Personal LoanNo minimumMore
LenderLoan typeMinimum incomeLearn more
Cash ConvertersMedium Personal Loan$1,000 per weekMore
Cash TrainCash Loan$1,200 per monthMore
Credit24Personal Loan$1,000 per monthMore
DollarsDirectShort Term Personal LoanNo minimumMore
Fair Go FinancePersonal Loan$500 per weekMore
FerratumPayday LoanNo minimumMore
MoneyMeShort Term LoanNo minimumMore
NimbleShort Term LoanNo minimumMore
Sunshine LoansShort Term Loan$450 per weekMore
Swoosh FinancePersonal LoanNo minimumMore

What to look out for with apprentice loans

  • Not comparing. Before applying for an apprentice loan make sure you're not doing it on the back of a hasty decision. This is because if you drop out of your apprenticeship any time after your start, you still have to repay the loan.
  • Interest capitalisation. With some student loans, while you might not have to start making repayments until you receive your first pay, they start attracting interest from day one and this can soon add up to a tidy sum.
  • Choosing ineligible alternatives. Before you choose any particular apprenticeship, find out if you can get a loan for it in the first place. For example, while some might require you to enrol in an approved Australian Apprenticeship traineeship course, others support most Certificate III and IV qualifications as well as certain Certificate II horticulture and agriculture qualifications.

Ready to apply?

Before you apply for an apprenticeship loan, take some time to compare the offerings on this page. Once you find a suitable option, simply click on the corresponding 'Go to Site' button to start the application process. Remember that different student and apprentice loans come with different eligibility criteria, which can include the following:

  • You should be between 18 and 25 years of age
  • You should be part of an approved Australian Apprenticeship course that is at least 12 months in duration

To complete an application for a typical apprentice loan, you may have to submit the following:

  • Your contact details
  • Copy of enrolment letter or statement
  • Copy of registration from training provider

Compare personal loans apprentices can apply for

If you don't qualify for the Australian Government Apprentice Loan Scheme, below are a comparison of low interest personal loans. These can be used for tools and equipment for your apprenticeship.

Rates last updated December 19th, 2017
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
SocietyOne Unsecured Personal Loan
From 7.5% (fixed)
9.51%
$5,000
2 to 5 years
$0
3% (of loan amount)
Based on your risk profile, you will receive a tailored rate between 7.5% and 20.14% with a SocietyOne personal loan.
Harmoney Unsecured Personal Loan
From 6.99% (fixed)
7.69%
$5,000
3 to 5 years
$0
$500 (Upfront fee)
Interest rates are tailored to each applicant individually, and start from as low as 6.99% p.a. to 29.99% p.a. based on credit history.
bcu Unsecured Freedom Loan
From 10.8% (variable)
13.9%
$4,000
1 to 5 years
$8
$200
A flexible personal loan available from $4,000 that you can use for any purpose.
Pepper Money Unsecured Fixed Rate Personal Loan
From 9.99% (fixed)
9.99%
$5,000
1 to 7 years
$0
$0
Apply for up to $50,000 and receive conditional approval within minutes.
NOW FINANCE Personal Loans
From 8.95% (fixed)
10.42%
$4,000
1.5 to 7 years
$13
$395 (Based on $10,000)
Get rewarded with a low interest rate for your good credit history. Rates from 8.95% p.a. to 16.95% p.a. depending on your credit score.
Bank Australia Personal Loan Property Owner
7.89% (variable)
8.92%
$1,000
1 to 10 years
$0
$150
Take advantage of long loan terms and use the funds for any purpose Note: Loan only available to property owners

Compare up to 4 providers

Remember to compare all the available options before you apply for a personal loan as an apprentice. Use the comparison table above to research your options and do your due diligence before clicking through to a lender

Was this content helpful to you? No  Yes

Related Posts

Harmoney Unsecured Personal Loan

Interest rates are tailored to each applicant individually, and start from as low as 6.99% p.a. to 29.99% p.a. based on credit history.

SocietyOne Unsecured Personal Loan

Based on your risk profile, you will receive a tailored rate between 7.5% and 20.14% with a SocietyOne personal loan.

NAB Personal Loan Unsecured Variable Rate

An unsecured loan with a redraw facility that allows you to access money you've paid in advance. You must have held a NAB Credit Card or Transaction account for at least 6 months before applying.

NOW FINANCE Personal Loans

Get rewarded with a low interest rate for your good credit history. Rates from 8.95% p.a. to 16.95% p.a. depending on your credit score.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

2 Responses

  1. Default Gravatar
    BoejFebruary 1, 2015

    Hay I start my apprentice ship tomorrow as a cook and applied for student loan was wondering how long it takes to be approved thanks

    • Staff
      ShirleyFebruary 2, 2015Staff

      Hi Boej,

      Thanks for your question.

      Please note that if you decide to apply for a product or service through our website you will be dealing directly with the provider of that product or service and not with us.

      For more information on the status of your application, please contact the lender directly.

      Cheers,
      Shirley

Ask a question