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Loans for apprentices

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

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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. It can be daunting applying for an apprentice loan, especially if you don't have much of a financial history. However, in Australia, you’ve still 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.

Young apprentice in a workshop with noise cancelling headphones

What are my loan options as an apprentice?

There are a few loan options available to apprentices:

Trade Support Loans

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 ($45,880 for 2019-20). This could be any time in the future, or possibly never.

Trade Support Loans are available up to $21,078 and are paid monthly in arrears. If you successfully complete your apprenticeship, you'll receive a 20% discount on your loan amount.

Personal loans

If you're looking to purchase a vehicle or need something else during your apprenticeship, you may be considering a car loan or personal loan for apprentices 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.

How much you'll qualify for with a personal loan will depend on factors such as your:

  • Earnings. Your apprenticeship wage will affect the size of loan you qualify for. The more you earn, the more you will be able to borrow.
  • Age. If you're 21 years old or over, you qualify as an "adult" and may be able to qualify for greater finance than if you are younger.
  • Assets. If you own any assets of value, such as a vehicle (this could be the family car), using it as security could help you to be approved for a personal loan.
  • Savings. If you have any savings in your name, these could also be used as security on the loan.
  • Credit history. Your credit score will affect a lender's decision as to whether or not to offer you a loan. Luckily, you can check your credit score for free with Finder.

Youth Allowance, Austudy and ABSTUDY

  • Youth Allowance. Apprentices aged between 16 and 24 may be eligible for Youth Allowance. The amount that you're eligible for may vary.
  • Austudy. Apprentices aged 25 and over may be eligible for Austudy. Austudy is available up to $1,156, which includes a $550 coronavirus supplement as of late April 2020.
  • ABSTUDY. ABSTUDY is also available for apprentices of any age who are Indigenous Australians. The amount that you're eligible for may vary.

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 $21,078 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 between 1 and 7 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 minimumMore
Latitude FinancialPersonal Loan$24,000 p.a.More
ME BankPersonal LoanNo minimumMore
NABPersonal LoanNo minimumMore
PlentiPeer-to-Peer LoanNo minimumMore
RACQUnsecured Personal LoanNo minimumMore
RACVPersonal LoanNo minimumMore
Society OnePeer-to-Peer Loan$30,000 p.a.More
St.GeorgeUnsecured Personal LoanNo minimumMore
WestpacUnsecured Personal LoanNo minimumMore
Wisr Unsecured 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 you 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 the first day, and this can soon add up.
  • 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 is a comparison of low interest personal loans. These can be used for tools and equipment for your apprenticeship.

Data indicated here is updated regularly
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
Symple Loans Personal Loan

From 5.75% (variable)
6.47%
$5,000
1 to 7 years
from 0% to 5% of the loan amount
$10
You'll receive a personalised interest rate from 5.75% p.a. to 21.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
Plenti Fixed Rate Personal Loan

From 6.49% (fixed)
6.84%
$2,001
3 to 5 years
From $149 to $599
$0
You'll receive a fixed rate between 6.49% p.a. and 12.79% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.
SocietyOne Unsecured Personal Loan (5 years)

From 7.99% (fixed)
7.99%
$5,000
5 years
from 0% to 5% (capped at $995)
$0
You'll receive a fixed rate between 7.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
SocietyOne Unsecured Personal Loan (2-3 years)

From 6.99% (fixed)
6.99%
$5,000
2 to 3 years
from 0% to 5% (capped at $995)
$0
You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
Plenti Variable Rate Personal Loan

From 6.49% (variable)
7.49%
$2,001
1 to 2 years
From $149 to $599
$0
You'll receive a variable rate from 6.49% p.a and 12.79% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 12 months. Benefit from transparent costs and a rate estimate before you apply.
Harmoney Unsecured Personal Loan

From 6.99% (fixed)
7.79%
$2,000
3 to 5 years
$575 ($275 for loans of below $5,000)
$0
You'll receive a fixed rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 year terms.
NAB Personal Loan Unsecured Fixed

From 9.99% (fixed)
10.88%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
Wisr Personal Loan

From 7.95% (fixed)
8.78%
$5,000
3 to 5 years
$595 (Establishment Fee)
$0
You'll receive a fixed rate between 7.95% p.a. and 19.45% p.a. based on your risk profile
A loan from $5,000 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.
Latitude Personal Loan (Unsecured)

From 7.99% (fixed)
9.24%
$3,000
1 to 7 years
$250 (Loans under $5000 - $140)
$13
You'll receive a fixed rate between 7.99% p.a. and 19.99% p.a. based on your risk profile
Apply for what you need from $3,000 and use it for a range of purposes. Repay weekly, fortnightly or monthly.
Heritage Bank Fixed Personal Loan
8.99% (fixed)
9.62%
$5,000
1 to 5 years
$200
$5
Choose a fixed rate loan and receive a comparison rate of 9.62% p.a.
Fixed rate loans are available up to $100,000 on terms from 1 to 5 years.
Alex Personal Loan

From 6.95% (fixed)
6.95%
$2,100
6 months to 5 years
$0 (waived $295)
$0
You'll receive a fixed interest rate from 6.95% p.a. to 19.99% p.a. based on your risk profile
Borrow between $2,100 and $30,000 from 6 months to 5 years. Benefit from no ongoing fees. Note: The establishment fee of $295 is waived for all applications until 30 September 2020. Terms & conditions apply.
CUA Unsecured Fixed Rate Personal Loan
9.89% (fixed)
10.14%
$5,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 9.89% p.a.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
OurMoneyMarket Personal Loan

From 7.99% (fixed)
8.46%
$2,001
1 to 7 years
1.5–6% of your total loan amount
$0
You'll receive a fixed rate from 7.99% p.a. to 25.25% p.a. based on your risk profile
A personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.
ING Personal Loan
Finder Award
ING Personal Loan
8.99% (fixed)
9.13%
$5,000
2 to 5 years
$100
$0
You'll receive a fixed rate of 8.99% p.a.
Benefit from no ongoing fees, no early repayment fees and flexible loan terms on amounts up to $30,000.
MoneyMe Personal Loans

From 8.99% (fixed)
10.68%
$3,001
2 to 5 years
5 - 8% of the principal borrowed, capped at $1,200
$0
You'll receive an interest rate between 8.99% p.a. and 29.99% p.a. based on your risk profile
A flexible personal loan from MoneyMe with access to cash when you need it.
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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

Related Posts

Personal Loan Offers

Important Information*
Logo for Harmoney Unsecured Personal Loan
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.

Logo for Pepper Money Unsecured Fixed Rate Personal Loan
Pepper Money Unsecured Fixed Rate Personal Loan

You'll receive a fixed rate between 6.95% p.a. and 17.95% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Make additional repayments or pay off the loan early, penalty-free.

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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

    • Avatarfinder Customer Care
      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

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