Candles lit in remembrance

Funeral Loans

Access the funds you need to give your dearly departed loved one the farewell they would have wanted.

The death of a much-loved family member or friend can be an incredibly difficult time. While the emotional impact of your loss will no doubt be at the front of your mind, the unfortunate reality is that a person’s death can also place a significant financial burden on those left behind. Funerals can cost as much as $15,000 to organise, which can place a significant strain on your bank balance at a time when you’ve got much more important things on your mind.

However, to help you cover the cost of giving your loved one a proper farewell, you may want to consider a funeral loan.

Expenses to plan for

Many people underestimate or simply don’t even think about just how much funerals cost. In Australia, the total cost of a funeral can range anywhere from $4,000 to $15,000, depending on whether you want a simple ceremony or a much more elaborate farewell.

Why do funerals cost so much? There are several expenses you need to budget for:

  • Funeral director fees for their professional services planning the funeral
  • Transport for the deceased to a funeral home
  • A hearse to transport the coffin to the burial site or funeral location
  • A coffin or casket
  • The death certificate and registration of death
  • Preparing the body for viewing, burial or cremation
  • Cemetery and crematorium fees, including the cost of a burial site
  • A headstone
  • An urn for cremated remains
  • Newspaper notices to advertise the death
  • Flowers
  • A celebrant or clergy
  • Transport for guests to the funeral service
  • Order-of-service booklets
  • Refreshments for the wake

If you need help covering all these costs so you can give your loved-one a proper send-off, you might need a funeral loan.

What types of loans can you use?

A funeral loan is basically a personal loan, and you can use it to cover unexpected funeral expenses that you would otherwise be unable to afford. There are two types of funeral loans available:

Secured funeral loan. A secured personal loan allows you to borrow an amount ranging from a minimum of $2,000 up to a maximum of $100,000, with the flexibility to pay the money back over a term of up to seven years. You’ll need to offer an asset (or assets) as security for the loan, for example a car or the equity in your home, and there are fixed- and variable-rate options available.

IMB Secured Personal Loan Offer

IMB Secured Personal Loan

6.89 % p.a.

fixed rate

7.24 % p.a.

comparison rate

  • No monthly account fees
  • Extra repayments OK
  • Borrow up to $60,000
Security Logo

100% confidential application

IMB Secured Personal Loan Offer

IMB offer a personal loan with a low interest rate of 6.89% and $0 ongoing fees.

  • Interest rate: 6.89% p.a.
  • Comparison rate: 7.24% p.a.
  • Interest rate type: Fixed
  • Application fee: $250
  • Minimum loan amount: $2,000
  • Maximum loan amount: $60,000
Go to site
Promoted
Rates last updated May 28th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
IMB Secured Personal Loan
6.89% (fixed)
7.24%
$2,000
1 to 5 years
$0
$250
All approved applicants can access this competitive rate and use the loan to finance a range of purposes. Loan amounts up to $60,000 available.
Stratton Finance New Car Loan
From 5.29% (fixed)
6.56%
$18,000
1 to 7 years
$8.90
$459.20
Apply for up to $100,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit.
IMB New Car Loan
5.99% (fixed)
6.34%
$2,000
1 to 7 years
$0
$250
Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.
RACV New Car Loans
From 5.99% (fixed)
6.53%
$15,000
1 to 7 years
$0
$380
A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.
CUA Secured Fixed Car Loan
6.79% (fixed)
6.92%
$5,000
1 to 7 years
$0
$0
A competitive car loan for new or used vehicles up to 7 years old that offers flexible repayment options and no account keeping fees.
Heritage Bank Car Loan
From 8.99% (fixed)
9.62%
$5,000
1 to 7 years
$5
$200
Apply for up to $100,000 to finance a new or used car at a competitive fixed rate.
MyState Secured Personal Loan
From 7.99% (variable)
8.96%
$10,000
1 to 10 years
$10
$200
Apply for a loan up to $75,000 and benefit from loan terms up to 10 years. Your choice between secured or unsecured.
Wisr Personal Loan
From 8.5% (variable)
9.36%
$5,000
3 to 5 years
$0
$595
Get a personalised interest rate between 8.5% p.a. and 18.5% p.a. and use your funds for any purpose.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
Use your car as security and benefit from a competitive interest rate. If you borrow more than $10,000 to buy a new or used car, you'll receive a $200 fuel card. Note: Must apply before 28 June 2018.
Heritage Bank Low Rate Secured Loan
From 5.14% (variable)
7.61%
$5,000
1 to 10 years
$5
$200
Have a Heritage Bank term deposit? Borrow up to the value of your deposit when you use it as security for this loan.
Latitude Low Rate Personal Loan (Secured)
10.99% (fixed)
12.21%
$20,000
2 to 7 years
$13
$250
A competitive fixed rate loan available from $3,000 when you attach an asset as security. Only available to homeowners.

Compare up to 4 providers

Unsecured funeral loan. An unsecured personal loan does not require you to offer any assets as collateral before your financing will be approved. This represents an increased risk for the lender and these types of loans tend to attract higher interest rates and fees than secured finance. Loan amounts of up to $50,000 are available, and terms typically range from one to seven years.

HSBC Personal Loan Offer

HSBC Personal Loan

from

9.50 % p.a.

fixed rate

from

10.06 % p.a.

comparison rate

  • Competitive interest rate
  • Additional payments OK
  • Borrow up to $50,000
Security Logo

100% confidential application

HSBC Personal Loan Offer

Apply for a HSBC Personal Loan and you'll get access to a competitive interest rate offer and a flexible range of repayment options.

  • Interest rate from: 9.50% p.a.
  • Comparison rate: 10.06% p.a.
  • Interest rate type: Fixed
  • Application fee: $150
  • Minimum loan amount: $5,000
  • Maximum loan amount: $50,000
Go to site
Promoted
Rates last updated May 28th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
HSBC Personal Loan
From 9.5% (fixed)
10.06%
$5,000
1 to 5 years
$5
$150
A competitive fixed interest rate loan with the option to make extra repayments. Rates range from 9.5% p.a. to 15.99% p.a. based on your credit history.
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 20.49% with a SocietyOne personal loan.
Citi Personal Loan Plus
From 8.99% (variable)
9.96%
$5,000
3 to 5 years
$10
$199
Borrow up to $75,000 to use for a range of purposes. You’ll receive a rate of between 8.99% p.a. and 17.99% p.a. depending on your risk profile. (Comparison Rate of 9.96% p.a. to 18.91% p.a..)
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 26.95% p.a.. based on your credit history.
Latitude Personal Loan (Unsecured)
From 13.99% (fixed)
15.19%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
An unsecured loan with a tailored rate from 13.99% p.a. to 29.99% p.a. designed for multiple purposes including renovating, buying a car or travelling.
Westpac Unsecured Personal Loan
12.99% (fixed)
14.14%
$4,000
1 to 7 years
$12
$250 (No establishment fee for a new Unsecured Personal Loan before 14 June 2018)
A competitive, fixed rate personal loan that allows you to make extra repayments. Apply before 14 June 2018 and pay $0 establishment fee.
CUA Unsecured Fixed Rate Personal Loan
11.99% (fixed)
11.99%
$5,000
1 to 7 years
$0
$0
Apply for a loan up to $60,000 and keep repayments manageable with a competitive fixed rate.
ANZ Fixed Rate Personal Loan
10.99% (fixed)
11.87%
$5,000
1 to 7 years
$10
$150
Apply for up to $50,000 to use however you choose and benefit from a competitive fixed rate.
MyState Unsecured Personal Loan
12.99% (variable)
16.42%
$3,000
1 to 7 years
$10
$200
Apply for up to $50,000 and make additional repayments at any time without penalty.
Heritage Bank Standard Personal Loan
12.99% (fixed)
13.61%
$5,000
1 to 5 years
$5
$200
A flexible personal loan where you can choose a fixed or variable rate and make extra repayments at any time.
St.George Unsecured Personal Loan - Fixed Rate
From 12.99% (fixed)
14.06%
$2,000
1 to 5 years
$12
$195
Convenient redraw facility and flexible personal loan repayment options with a competitive interest rate between 12.99% p.a. and 19.99% p.a.. If you borrow more than $10,000 to buy a new or used car, you'll receive a $200 fuel card. Note: Must apply before 28 June 2018.

Compare up to 4 providers

Things to consider before you apply for a funeral loan

Before applying for a funeral loan, make sure to consider the following factors:

  • The risks of borrowing. Taking on any kind of debt always comes with a level of risk attached, so make sure you’re aware of all the risks associated with borrowing money to pay for a funeral. For example, will the asset you offer as security be repossessed if you can’t afford to repay your loan?
  • Your repayment amounts. Remember that you will not only have to repay the money you borrow, but also any interest that accrues on top of that amount. Crunch the numbers to find out how much your regular repayment amount will be as well as the total cost to you over the life of the loan before you apply.
  • Other payment options. Before you borrow money, consider whether there are any other ways you can cover the funeral costs. For example, have you been setting money aside in a savings or term deposit account that could be used to foot the bill?
  • The importance of planning ahead. If you’re worried that your death could place a significant financial burden on your family, there are several options you can consider to help pay for funeral costs. These include pre-paid funeral plans, funeral bonds and funeral insurance.

How to compare funeral loans

If you’re shopping around to find the right personal loan to help cover the cost of a funeral, remember to consider the following factors when weighing up the pros and cons of loans:

  • Secured or unsecured. Will you need to offer any assets as security for the loan? While a secured loan will allow you to access better interest rates and lower fees, don’t forget that if you fall behind on repayments then the lender could seize those assets.
  • Interest rate. Compare interest rates across a variety of loans to work out how much your regular repayment amounts will be. Remember that there are fixed- and variable-rate loans available, so make sure you compare apples with apples.
  • Fees. Fees are the other main cost you need to consider when taking out a personal loan. Read the loan terms and conditions for details of any application fees and ongoing charges that apply as well as the penalty charged if you miss a repayment.
  • Repayment schedule. Take a closer look at the loan repayment schedule – can you tailor it to suit your income and budget? Is the regular repayment amount something you can realistically afford?
  • Loan terms. How long will you have to repay the money you borrow? Short-term loans cost less but require large regular repayments, while loans with longer terms have more affordable repayment amounts but could end up costing more in the long run.
  • Speed of access to funds. You may need urgent access to funds in order to pay funeral costs as soon as possible, so make sure to consider the speed with which a lender assesses applications and transfers the loan amount to you.

What you will need to apply

You’ll need to check that you’re eligible for a funeral loan before you apply. You will typically need to meet the following criteria:

  • Be at least 18 years of age
  • Be an Australian citizen or permanent resident

You’ll also need to provide the following information when you apply for a loan:

  • Your name, date of birth, contact details and proof of ID
  • Details of the loan amount and purpose
  • Information about your employment and income
  • Details of your assets and liabilities

Once you have submitted your application, the lender will assess it. Application times vary across lenders, but some are able to offer same-day financing if you need the funds urgently.

Frequently asked questions about funeral loans

Picture: Shutterstock

Was this content helpful to you? No  Yes

Related Posts

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, 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.
Ask a question
Go to site