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Funeral Loans

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

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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.

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
Loans.com.au - New and Dealer Used Car Loan
From 4.67% (fixed)
5.22%
$5,000
3 to 5 years
$400
$0
You'll receive a fixed rate from 4.67% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Note: Settle the loan before 30 November 2020 and enter the draw to win a $1,000 fuel voucher. Terms & conditions apply.
Stratton Finance New Car Loan
From 4.05% (fixed)
5.63%
$10,000
3 to 7 years
$700
$8.25
You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Credit Concierge Car Loan
From 4.45% (fixed)
5%
$10,000
1 to 7 years
$350
$0
You'll receive a fixed rate of 4.45% p.a. with a comparison rate of 5% p.a.
Get access to over 20 providers to fund a new or used car.

Heritage Bank Car Loan
5.99% (fixed)
6.63%
$5,000
1 to 7 years
$200
$5
You'll receive a fixed rate from 5.99% p.a.
Finance a new or used car up to 5 years old. Large maximum borrowing amount up to $100,000 and terms up to 7 years.
CUA Secured Fixed Car Loan
6.79% (fixed)
7.16%
$5,000
1 to 7 years
$265 ($175 Establishment Fee + $90 Security Administration Fee)
$0
You'll receive a fixed rate of 6.79% p.a.
A secured loan with a high maximum borrowing amount up to $100,000. Redraw facility and no monthly fees.
NRMA New Car Loan
From 4.99% (fixed)
5.69%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 4.99% p. a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
Plenti Car Loan
From 4.89% (fixed)
5.44%
$10,000
3 to 7 years
$799 (from $249 to $799)
$0
You'll receive a fixed rate from 4.89% p.a.
Borrow up to $100,000 with a RateSetter Car Loan and benefit from no early repayment or exit fees.
Driva Car Loan
From 4.34% (fixed)
5.5%
$2,000
1 to 7 years
$295 (Varies by lender, starting from $295)
$10
You'll receive a fixed rate from 4.34% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
IMB New Car Loan
5.45% (fixed)
5.8%
$2,000
1 to 7 years
$275.12 ($250 Application fee + $25.12 PPS registration fee)
$0
You'll receive a fixed rate of 5.45% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.
NRMA Used Car Loan
From 6.49% (fixed)
7.19%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 6.49% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.
Latitude Personal Loan (Secured)
From 6.49% (fixed)
7.75%
$3,000
1 to 7 years
$250 (Loans under $5000 - $140)
$13
You'll receive a fixed rate between 6.49% p.a. and 19.49% p.a. based on your risk profile
Lock in a competitive fixed rate when you offer security. Loan can be used for any purpose and repayments are flexible.
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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.

Harmoney Unsecured Personal Loan

Harmoney Unsecured Personal Loan

From

6.99 % p.a.

fixed rate

From

7.79 % p.a.

comparison rate

  • Borrow up to $50,000
  • 3 and 5 years terms
  • No hidden fees
Security Logo

100% confidential application

Harmoney Unsecured Personal Loan

An unsecured personal loan up to $50,000. You'll receive a tailored interest rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.

  • Interest rate from: 6.99% p.a.
  • Comparison rate: 7.79% p.a.
  • Interest rate type: Fixed
  • Application fee: $575 ($275 for loans of below $5,000)
  • Minimum loan amount: $2,000
  • Maximum loan amount: $50,000
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Promoted
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
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.
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.
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.
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.
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.
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.
NOW FINANCE Personal Loans

From 6.95% (fixed)
8.57%
$15,001
18 months to 7 years
$495 (Based on $30,000)
$13
You'll receive a fixed rate between 6.95% p.a. and 17.95% p.a. based on your risk profile
Apply for loans from $15,001 and get a dedicated loan advisor. No security required.
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.
NAB Personal Loan Unsecured Variable Rate

From 9.99% (variable)
10.88%
$5,000
1 to 7 years
$150
$10
You'll receive a variable 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. Benefit from fee-free additional repayments and a redraw facility. 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.
CUA Unsecured Variable Personal Loan
11.89% (variable)
12.15%
$5,000
1 to 7 years
$175
$0
You'll receive a variable rate of 11.89% p.a.
Borrow from $5,000 with the option for flexible repayments and no monthly fees.
Heritage Bank Standard Variable Personal Loan
11.99% (variable)
12.61%
$5,000
1 to 10 years
$200
$5
Choose a variable rate loan and receive a 12.61% p.a. comparison rate
Variable rate loans are available from $5,000 - $100,000 on terms of 1 to 10 years.
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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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 personal 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

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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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