About to start a new role or haven't been in your current job long? Here's what you need to know before you apply for a personal loan.
When assessing a loan application, lenders check a range of aspects to ensure you can manage the loan and that you aren't too risky to lend to. Part of this assessment is your employment. Most lenders will require you to be employed (although some do not), to earn a certain income and to have been employed for a certain amount of time. This guide will take you through what employment criteria may apply, especially if you're a new employee, to give you a better chance of being approved.
- Competitive interest rate
- Additional payments OK
- Borrow up to $50,000
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HSBC Personal Loan Offer
Apply for a HSBC Personal Loan and you'll get access 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
Compare a range of personal loans
Find a range of loans below that you can compare if you've only been employed for a short time.
What do lenders consider when approving personal loans?
Lenders look at a variety of criteria, which can include any of the following:
- Age. You need to be over the age of 18 to be eligible.
- Employment. There are a few factors that come into play with employment criteria. You may need to be employed full-time (although part-time and casual employees also have loan options) and you may need to earn a certain income to be eligible. You also may need to have held your current job for a minimum period of time. See below for more information.
- Credit history. Traditional lenders such as banks and credit unions will normally require you to have good credit to be eligible. That is, no negative listings such as defaults, bankruptcies or multiple credit enquiries can be listed on your file. However, there are bad credit personal loans available.
- Residency. You will usually need to be an Australian citizen or permanent resident to be eligible, but some lenders do consider temporary residents for personal loans.
How long do I need to have been employed to apply for a personal loan?
|Lender||Minimum income||Minimum time you must have been employed (full-time)||Minimum time you must have been employed (part-time)|
|ANZ||$15,000 p.a.||3 months||6 months|
|Bankwest||N/A||3 months||3 months|
|Bank of Melbourne||N/A||2 payslips||6 months|
|BankSA||N/A||2 payslips||6 months|
|CommBank||N/A||No minimum||3 months for casual employees|
|enably||$1,500 per month||3 months||3 months|
|IMB||$26,000 p.a.||N/A||12 months|
|MoneyMe||N/A||Depends on income||Depends on income|
|St.George||N/A||No minimum||6 months|
How can I get approved for a personal loan as a new employee?
If you've just started a new role or are about to start, keep the following in mind before you submit your application:
- Consider applying for a lower amount. Lenders may be more hesitant to approve you for a larger loan, especially if you haven't been at your job long. Think about how much you really need to borrow and apply for just as much as you need.
- Offer security. A secured loan is less risky for a lender and you may be more likely to be approved.
- Can you wait to apply? Waiting even a month or two may give you a better chance. Lenders consider probationary periods to range from three to six months, so if you are close to being employed for that length of time you may want to wait.
- Make sure you meet all of the other minimum requirements. Lenders have a range of minimum requirements you need to meet that extend beyond employment. Check you meet all of these as well.
- Check your credit history. If you aren't sure what's on your credit file or how good your credit score is, it's worth checking before you apply. You can check your credit score for free on finder.com.au and you can order a free copy of your credit report from Equifax.
- Let your employer know. Lenders may want to confirm your employment with your current employer, so giving them a heads-up before this happens can help speed up the process.
- Provide as much supporting documentation as possible. If you have any assets or savings you should provide evidence of these as part of your application.
- Consider talking directly with the lender before applying. Still not sure if you're eligible? Talk directly with the lender before submitting your application. The lender won't be able to tell you definitely whether or not you'll be approved but they may be able to shed some light on their criteria in relation to your financial circumstances.