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Learn how to find out if you’re eligible for a personal loan based on your income with this guide.
Lender | Minimum income required | Review the loans |
---|---|---|
ANZ | $15,000 p.a. | Review |
Bankwest | $20,000 p.a. | Review |
Bank of Melbourne | No minimum | Review |
BankSA | No minimum | Review |
bcu | No minimum | Review |
Bendigo Bank | No minimum | Review |
Citi | $40,000 p.a. | Review |
CommBank | No minimum | Review |
CUA | No minimum | Review |
IMB | No minimum | Review |
Latitude | $24,000 p.a. | Review |
ME Bank | No minimum | Review |
NAB | No minimum | Review |
Plenti | No minimum | Review |
RACQ | No minimum | Review |
RACV | No minimum | Review |
SocietyOne | $30,000 p.a. | Review |
St.George | No minimum | Review |
Westpac | No minimum | Review |
Lender | Minimum income required | Review the loan |
---|---|---|
Cash Converters | $300 per week | Review |
Cash Train | $1,200 per month | Review |
ClearLoans | No minimum | Review |
Fair Go Finance | $500 per week | Review |
MoneyMe | No minimum | Review |
MoneySpot | No minimum | Review |
Nimble | No minimum | Review |
Speckle | $22,000 p.a. | Review |
Swoosh Finance | $300 per week | Review |
Sunshine Loans | $300 per week | Review |
Wallet Wizard | No minimum | Review |
If the lender has no minimum income requirement then it will rely on its own methods to determine whether or not you can afford the loan. The lender will do its due diligence by asking for your bank statements and/or an estimate of your expenses and other commitments, such as credit card limits and loans, to see if you will be able to afford the repayments.
If you have concerns about whether or not you will be approved, you might want to contact the lender to get some more information.
How do lenders determine how much I can borrow?
When you submit an application for a loan, the lender will most likely ask about your expenditure. You should try to be as accurate as possible when estimating your expenses as the lender may check your bank statements. Lenders also 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 you 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.
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.
There are a few things you can do if you find out you don’t meet the minimum income requirements:
Now that you know how to find out what income you need to earn to be approved for a personal loan, and how to determine your own borrowing power, compare a range of personal loans to find the right one for you.
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I earn $565 per week. Am I able to borrow $5000?
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.
Cheers,
Rench