How much do you need to earn to get a personal loan?

Discover your borrowing power, even if you’re on a low income.

Just as people take out personal loans for a range of reasons, personal loans are available to people in a range of financial situations. Some lenders have a minimum income that you need to earn in order to apply for a specific loan, while other lenders just need you to prove that you’re able to afford the loan.

Learn how find out if you’re eligible for a personal loan based on your income with this guide.

How can I find out the minimum income required to get a personal loan?

While some lenders clearly state a minimum income requirement, other lenders do not. If there is a minimum income requirement it will be listed on the review page, like in this example:

societyone eligibility criteria

If a minimum income isn’t stated, the lender will just want you to prove you can afford the loan. Jump ahead to find out how to do this>>>

What income do I need to earn to be approved for a personal loan?

LenderPersonal LoanMinimum 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
CitiReady 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
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
LenderShort term loanMinimum 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

How can I prove my borrowing power?

The first step to proving your borrowing power is working out whether you can actually afford the loan. Use a personal loan repayment calculator to work out your repayments based on the interest rate, fees, loan amount and loan term of your chosen personal loan. After you’ve done this, determine whether you’ll be able to manage the repayments on your current budget.

If you’re unsure of your borrowing power, you can use this borrowing power calculator to find out how much you might be eligible to borrow.

How do lenders determine my borrowing power?

When you submit an application for a loan, the lender will most likely ask about your expenditure. While you may have a lower expenditure than other applicants, it may not actually matter. Lenders use a formula called the Household Expenditure Method (HEM) to work out how much you’re likely to be spending based on the median spending of Australian households.

The HEM uses the number of adults and dependents in your household, the state you live in, whether you rent or own and how lavish a lifestyle lead to determine how much you’re spending. While this may not seem altogether fair, as your expenditure may actually be lower than the average, it does help banks curtail false expenditure claims.

What do I do if I’m not eligible?

There are a few things you can do if you find out you don’t meet the minimum income requirements:

  • Apply for a lower amount. If you can’t prove your ability to manage repayments for your current requested loan amount, consider borrowing less. This will mean lower repayments and less of a risk for the lender.
  • Choose a more affordable loan. The reason you might be ineligible for a loan could be that the loan has costs that are deemed too expensive for you. Other loans may have lower interest rates and fewer fees, which will give you a better chance of managing the repayments.
  • Try your current bank. If you have a good banking history you might have a better chance of being approved for a loan with your current bank. You may be able to find products that you could be eligible for by logging into your Internet banking portal.

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Personal Loan Offers

Important Information*
HSBC Personal Loan

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

Based on your risk profile, you will receive a tailored rate between 7.5% and 20.49% with a SocietyOne personal loan.

Latitude Personal Loan (Unsecured)

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.

Citi Personal Loan Plus

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.)

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2 Responses

  1. Default Gravatar
    WarrenAugust 2, 2017

    I earn $565 per week. Am I able to borrow $5000?

    • finder Customer Care
      RenchAugust 2, 2017Staff

      Hi Warren,

      Thanks for reaching out to us.

      I believe this page will also be helpful to you. You can make use of the personal loan calculator and get helpful info from there. Also, you may compare your options for personal loans.


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