A personal loan is one of the easier ways to borrow $5,000, and with a good credit score you can get a competitive rate. Bad credit borrowers still have options, but they are more expensive.
While payday loans are advertised as fast, easy ways to get smaller loans, they're limited by law to $2,000 and have very high fees.
What kind of personal loans can I use to borrow $5,000?
Most people looking for a $5,000 loan will choose an unsecured personal loan. These loans are easier to get and you don't have to put up a car as security.
Secured personal loans typically require a new (or newish) car as security. While some lenders may offer you a lower rate (because the loan is lower risk to the lender), these days the lowest unsecured personal loan rates are often just as low.
How much does a $5,000 personal loan cost?
The exact cost of a $5,000 personal loan depends on:
The length of the loan.
The interest rate.
The fees.
$5,000 personal loan cost examples
Loan value
Loan term
Interest rate
Monthly fee
Monthly repayments
Total loan cost
$5,000
3
7%
$10
$165
$5918
$5,000
4
10%
$5
$132
$6,328
$5,000
5
12%
$8
$120
$7,154
When you apply for a personal loan it's important to consider the different fees, interest rates and loan terms. As you can see, a 5 year loan term with a higher interest rate will give you lower monthly repayments, but you'll end up paying much more in fees and interest over the loan period.
These are just simplified examples that don't take your personal circumstances into account. Use a personal loan repayment calculator to figure out your own loan costs.
What is the personal loan comparison rate?
The personal loan comparison rate takes into account both the loan's interest rate and the cost of fees. It's designed to help you understand the true cost of a loan.
Every personal loan has a comparison rate, but most lenders calculate these rates based on different loan sizes, typically $30,000 or $10,000. So these rates don't always reflect the costs for a $5,000 loan.
How do I compare $5,000 loans?
Look at the rates and fees. A loan with a lower rate and fewer fees will save you money.
Choose the right loan term. A personal loan with a 1-year term is usually cheaper than a 5-year loan because you pay less interest over a shorter time. But your monthly repayments will be higher. So the right loan term is about balancing your monthly and your overall costs.
Look for a loan with features you need. Some personal loans allow you to make extra repayments without a fee, which helps you pay off the loan faster.
Check the lender's eligibility criteria before you apply. Don't waste time (and hurt your credit score) applying for a $5,000 loan you're not eligible for. Make sure you meet the lender's criteria first.
Get your credit score in good shape. The lowest rates and the best deals go to borrowers with excellent credit scores. Improve your credit score before applying for a loan.
The lowest unsecured rate is 5.76% and the average is 10.51%.
The lowest secured rate is 5.67% and the average is 9.66%.
The average Australian is carrying $24,333 in personal loans (including car loans).
Most people take out personal loan terms of 3 years.
5% say their personal loan debt causes them the most stress out of any expense.
*The information in this update comes from Finder's loans database and Consumer Sentiment Tracker. Information is correct as of 5 December 2025.
Can I borrow $5,000 if I have bad credit?
If you have bad credit you might find it harder to get a personal loan. A small loan amount like $5,000 might be accepted by some lenders, but you'll probably find you have a higher interest rate.
Borrowers with bad credit who need money quickly often turn to payday loans or bad credit loans, but these solutions are usually very costly and can make your debt situation worse.
Can I get a $5,000 personal loan with guaranteed approval?
Beware of lenders whose websites mention "guaranteed approval" for small loans. The truth is any regulated lender will perform some kind of check on your credit score and suitability as a borrower before lending you $5,000.
These lenders are often going to charge you very high interest rates and fees.
If a lender is truly promising you "a small personal loan with guaranteed approval" they are likely a scam. You can check ASIC's register to see if a lending business is appropriately licensed.
⚠️ Warning about Borrowing
Do you really need a loan today?*
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
Alternatives to a $5,000 personal loan
If a personal loan doesn't work for you and you'd rather avoid a pricey payday loan, you could consider one of the following:
Credit card. If you have an existing credit card you might be able to get the credit limit raised to $5,000 or you might already have a limit that high. Credit cards also offer interest-free periods. But after that, you'll be charged a higher interest rate compared to a personal loan. If you can't pay back the $5,000 purchase in a short time this will end up being quite expensive.
Home loan top up. If you have a home loan and you've been making repayments on time, your lender may approve a top up to the home loan, allowing you to borrow slightly more against your equity and put it on your loan. Your home loan will have a lower rate than a personal loan. But keep in mind that a home loan is a much longer debt, so adding to it means you pay more in interest in the long run.
No interest loans (NILs). While you can't get $5,000, eligible Australians on low incomes can qualify for no interest loans from community-led non-profit organisations. You don't get charged interest, but it's also not really a loan. You can only use the money for an approved expense, such as car repairs, medical expenses or an essential household item.
Our expert says: Think carefully before using a credit card
"A credit card might be tempting as a rolling credit solution, particularly if you already have one. But if you need the money to cover a single $5,000 purchase, a credit card is rarely the answer.
With high interest rates and a short interest-free period, you would need to be confident you could pay off the money quickly. Interest free periods are usually around 44 days, but after that you would pay a much higher rate than with a personal loan."
Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
Frequently asked questions about $5,000 personal loans
Click "Go to Site" on Finder's comparison table to begin your applications. Most lenders have applications online, making it easier to access.
Some lenders have a faster approval time than others and offer quick loans. While you may get the money faster, it's important to be aware that these loans may charge higher interest rates.
If you have a steady income, a decent credit score and minimal outstanding debts then getting a $5,000 loan approved shouldn't be too difficult.
Many lenders will approve much larger loans for creditworthy borrowers.
This will differ between lenders. However, you will typically receive a notification on whether or not your application has been approved. The lender will also provide instructions for the next steps.
When you apply for a loan online, your details are securely transmitted over an encrypted connection. The majority of the sites you apply through use 128 bit SSL encryption to ensure your details are safe and secure.
You may be able to apply, but you'll need to be receiving some form of income to qualify. Lenders will look into whether you can afford to repay the loan. If you receive Centrelink payments, it shouldn't exceed 50% of your total income. You can read more about loans for unemployed applicants in our guide.
Sources
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To make sure you get accurate and helpful information, this guide has been edited by
Rebecca Pike
as part of our
fact-checking process.
Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University.
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if I went bankrupt in 2008 and im on centerlink can I get a loan
Finder
ShirleyMarch 19, 2015Finder
Hi Kelly,
Thanks for your question.
You may still be eligible for a loan, though be mindful of the requirements. Some require that Centrelink can not be your sole income and can only make up 50% of your income.
Cheers,
Shirley
dianaMarch 18, 2015
hi can you help me find a loan for $3000 I have bad credit. I am on social security. and I have been baby sitting for two years. my monthly income all together is $1600. I don’t have a checking acct. I use a debit card. can someone help me ?
Finder
ShirleyMarch 18, 2015Finder
Hi Diana,
Thanks for your question.
Unfortunately at this current point in time the highest loan amount in our comparison for bad credit is $2,025 by Dollars Direct. If you would like to proceed with this loan, please click on ‘Go to site’ to get started.
Dollars Direct looks at the cash flows in your bank statement in order to assess your eligibility.
Cheers,
Shirley
MaryMarch 15, 2015
Want to borrow 600 dollars my credit is poor. Is there any verication fees like first months installment
The fees are typically charged through your repayments. For example, the cost of borrowing $100 is 20% of borrowed amount + 4% of borrowed amount each month as your repayments.
Cheers,
Shirley
KarlMarch 9, 2015
Can you help me find some body that wil lend me $5000 pls asap
Finder
ShirleyMarch 10, 2015Finder
Hi Karl,
Thanks for your question.
If you currently have a good credit standing, you can apply for an unsecured personal loan up to $5,000. The lenders who can assist you are listed in the second, blue comparison table on this page.
Cheers,
Shirley
LeonMarch 5, 2015
Doo you have a lender hoo will lend 5000 to me wen I have bad credit and on centrelink onley
AnneMarch 10, 2015
Hi. Was just wondering, my credit is aweful and need about 5,000.00.. can pay it back by the end of this month.How would I go about doing that?
Finder
ShirleyMarch 10, 2015Finder
Hi Anne,
Thanks for your question.
Unfortunately at this current point in time the maximum loan amount in our panel of bad credit lenders is $2,025.
If you would like to proceed with an application, please ensure you meet the requirements and click on ‘Go to site’ to get your app started.
Cheers,
Shirley
Finder
ShirleyMarch 6, 2015Finder
Hi Leon,
Thanks for your question.
Since your only source of income from Centrelink, you may not be able to borrow such a high loan amount. There are a few lenders who will consider you for a loan when you are receiving Centrelink payments. You can find lenders who may consider you to borrow from our list of unemployed loans.
Please ensure you compare your options and meet the criteria and kindly read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply for the loan.
If you're wanting to bolster your application, buy an asset with your partner or apply for a loan you're not eligible for by yourself, you can consider a joint application personal loan.
Find a low interest loan by comparing your options with Finder. See interest rates, fees, and features for loans across Australia, plus guides to help you get the best deal.
Find out exactly what you need to know when it comes to cheap personal loans, including working out if a loan is really competitive.
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We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
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Do you really need a loan today?*
Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest. 
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
if I went bankrupt in 2008 and im on centerlink can I get a loan
Hi Kelly,
Thanks for your question.
You may still be eligible for a loan, though be mindful of the requirements. Some require that Centrelink can not be your sole income and can only make up 50% of your income.
Cheers,
Shirley
hi can you help me find a loan for $3000 I have bad credit. I am on social security. and I have been baby sitting for two years. my monthly income all together is $1600. I don’t have a checking acct. I use a debit card. can someone help me ?
Hi Diana,
Thanks for your question.
Unfortunately at this current point in time the highest loan amount in our comparison for bad credit is $2,025 by Dollars Direct. If you would like to proceed with this loan, please click on ‘Go to site’ to get started.
Dollars Direct looks at the cash flows in your bank statement in order to assess your eligibility.
Cheers,
Shirley
Want to borrow 600 dollars my credit is poor. Is there any verication fees like first months installment
I live in the United States not Austrsila sorry
Hi Mary,
Thanks for your question.
You may want to compare your options on our no credit check personal loans guide.
The fees are typically charged through your repayments. For example, the cost of borrowing $100 is 20% of borrowed amount + 4% of borrowed amount each month as your repayments.
Cheers,
Shirley
Can you help me find some body that wil lend me $5000 pls asap
Hi Karl,
Thanks for your question.
If you currently have a good credit standing, you can apply for an unsecured personal loan up to $5,000. The lenders who can assist you are listed in the second, blue comparison table on this page.
Cheers,
Shirley
Doo you have a lender hoo will lend 5000 to me wen I have bad credit and on centrelink onley
Hi. Was just wondering, my credit is aweful and need about 5,000.00.. can pay it back by the end of this month.How would I go about doing that?
Hi Anne,
Thanks for your question.
Unfortunately at this current point in time the maximum loan amount in our panel of bad credit lenders is $2,025.
If you would like to proceed with an application, please ensure you meet the requirements and click on ‘Go to site’ to get your app started.
Cheers,
Shirley
Hi Leon,
Thanks for your question.
Since your only source of income from Centrelink, you may not be able to borrow such a high loan amount. There are a few lenders who will consider you for a loan when you are receiving Centrelink payments. You can find lenders who may consider you to borrow from our list of unemployed loans.
You can also compare lenders who offer loans to Centrelink recipients loans to Centrelink recipients and other government and community assistance programs that you can apply.
Please ensure you compare your options and meet the criteria and kindly read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply for the loan.
Cheers,
Shirley