How much do you need to earn to get a personal loan? | finder.com.au

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

Learn how lenders determine your borrowing power to get a better chance of being approved.

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Personal loans are available to people in a range of financial situations. To make sure the loan is suitable, lenders set certain requirements that borrowers need to meet to be eligible to apply for the loan. One of these is a minimum income requirement. This is one way of proving you're able to afford the loan.

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

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

LenderMinimum income requiredReview the loans
ANZ$15,000 p.a.Review
Bankwest$20,000 p.a.Review
Bank of MelbourneNo minimumReview
BankSANo minimumReview
bcuNo minimumReview
Bendigo BankNo minimumReview
Citi$40,000 p.a.Review
CommBankNo minimumReview
CUANo minimumReview
IMBNo minimumReview
Latitude$24,000 p.a.Review
ME BankNo minimumReview
NABNo minimumReview
PlentiNo minimumReview
RACQNo minimumReview
RACVNo minimumReview
SocietyOne$30,000 p.a.Review
St.GeorgeNo minimumReview
WestpacNo minimumReview
LenderMinimum income requiredReview the loan
Cash Converters$300 per weekReview
Cash Train$1,200 per monthReview
ClearLoansNo minimumReview
Fair Go Finance$500 per weekReview
MoneyMeNo minimumReview
MoneySpotNo minimumReview
NimbleNo minimumReview
Speckle$22,000 p.a.Review
Swoosh Finance$300 per weekReview
Sunshine Loans$300 per weekReview
Wallet WizardNo minimumReview

What if the lender has no minimum income requirement?

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.

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.

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.

Compare a range of personal loans

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.

Data 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 Personal Loan

From 6.39% (fixed)
6.39%
$2,001
3 to 7 years
$0 to $999
$0
You'll receive a fixed rate between 6.39% p.a. and 17.89% 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.
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 24.79% 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.
Citi Personal Loan Plus
8.90% (variable)
9.18%
$5,000
3 to 5 years
$199
$0
You'll receive a variable rate of 8.90% p.a. with a comparison rate of 9.18% p.a.
A credit limit up to $40,000 that you can continue to draw down over terms up to 5 years. Note: Monthly account service fee will be waived for applications submitted before 30 September 2021.
NAB Personal Loan Unsecured Fixed

From 6.99% (fixed)
7.91%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% 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.
OurMoneyMarket Personal Loan

From 5.35% (fixed)
6.31%
$2,001
1 to 7 years
1.5–6% of your total loan amount
$0
You'll receive a fixed rate from 5.35% p.a. to 20.99% 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.


⭐ Finder Exclusive: Apply before April 30th to secure a discounted rate of 5.35% p.a. (comparison rate: 6.31% p.a.) for the first 12 months.
Alex Personal Loan

From 5.49% (fixed)
5.49%
$2,100
6 months to 5 years
$0 (Waived $295 establishment fee)
$0
You'll receive a fixed interest rate from 5.49% 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. Note: The $295 establishment fee will be waived for loan applications submitted by 3 May 2021
NOW Finance No Fee Unsecured Personal Loan

From 5.95% (fixed)
5.95%
$5,000
18 months to 7 years
No Establishment Fee
$0
You'll receive a fixed rate between 5.95% p.a. and 17.95% p.a. based on your risk profile
Borrow from $5,000 to $7,999 with loan terms between 18 months and 3 years or borrow $8,000 to $50,000 with loan terms between 18 months and 7 years.


⭐ Finder Exclusive: Get a free $200 Westfield e-gift card once your loan application has settled. Offer ends on 30 April 2021. T&Cs apply.
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 25.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
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 22.99% 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. You can check your interest rate before applying with no impact to your credit score.
SocietyOne Unsecured Personal Loan (2-3 years)

From 6.39% (fixed)
6.39%
$5,000
2 to 3 years
from 0% to 5% of the loan amount
$0
You'll receive a fixed rate between 6.39% p.a. and 17.49% 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 6.39% (fixed)
6.39%
$5,000
5 years
from 0% to 5% of the loan amount
$0
You'll receive a fixed rate between 6.39% p.a. and 19.99% 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.
Wisr Personal Loan

From 6.49% (fixed)
6.76%
$5,000
3 to 5 years
$595
$0
You'll receive a fixed rate between 6.49% p.a. and 19.95% 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.
MoneyMe Personal Loans

From 6.25% (fixed)
7.64%
$2,100
1 to 5 years
from $295 to $495
$10
You'll receive an interest rate between 6.25% p.a. and 19.95% p.a. based on your risk profile
Borrow up to $50,000 with no hidden fees or costs. Application process usually takes 5 minutes to complete and is done fully online.
CUA Unsecured Fixed Rate Personal Loan
9.39% (fixed)
9.64%
$5,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 9.39% p.a.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
Pepper Money No Fee Personal Loan

From 5.95% (fixed)
5.95%
$5,000
18 months to 7 years
$0
$0
You'll receive a fixed rate between 5.95% p.a. and 17.95% p.a. based on your risk profile
Borrow from $5,000 to $50,000 and use for a range of purposes. Pay no upfront, early repayment or ongoing fees.
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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 24.79% 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 ANZ Fixed Rate Personal Loan
ANZ Fixed Rate Personal Loan

You'll receive a fixed rate of 10.5% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% 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.

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2 Responses

    Default Gravatar
    WarrenAugust 2, 2017

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

      Avatarfinder Customer Care
      RenchAugust 2, 2017Staff

      Hi Warren,

      Thanks for reaching out to us.

      Your ability to borrow money would depend on how your chosen lender would assess your creditworthiness. If you meet their eligibility requirements, there’s a higher chance you’ll get approved. You can use our calculator to get an idea how of much you can borrow. You can also read more about how to increase your chance of getting approved for a personal loan.

      I hope this helps.

      Cheers,
      Rench

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