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Loans for 18-year-olds

Most personal loans are available for borrowers aged 18 or older. But if you're 18 it helps to have a good track record of savings and income before you apply.

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1 - 8 of 194
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
NOW Finance No Fee Unsecured Personal Loan
NOW Finance logo
Finder award winnerFixed18 Months - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
6.75%
to 26.95%
Comp. Rate (p.a.)
6.75%
to 26.95%
Application Fee
$0
Monthly Fee
$0
Monthly Repayment
$615.26
Go to siteMore Info
Harmoney Unsecured Personal Loan
Harmoney logo
Finder award winnerFixed3 - 7 Years $2,000 - $70,000
Interest Rate (p.a.)
5.76%
to 24.03%
Comp. Rate (p.a.)
6.55%
to 24.98%
Application Fee
$275 - $575
Monthly Fee
$0
Monthly Repayment
$623.70
Go to siteMore Info
OurMoneyMarket Unsecured Low-Rate Personal Loan
OurMoneyMarket logo
Finder award winnerFixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
NAB Personal Loan Unsecured Fixed
NAB logo
Fixed1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
8.49%
to 20.49%
Comp. Rate (p.a.)
9.54%
to 21.49%
Application Fee
$250
Monthly Fee
$10
Monthly Repayment
$649.15
Go to siteMore Info
OurMoneyMarket Secured Personal Loan
OurMoneyMarket logo
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
ING Personal Loan
ING logo
Finder award winnerFixed2 - 7 Years $5,000 - $60,000
Interest Rate (p.a.)
6.89%
to 18.99%
Comp. Rate (p.a.)
7.10%
to 19.23%
Application Fee
$150
Monthly Fee
$0
Monthly Repayment
$621.16
Go to siteMore Info
NAB Personal Loan Unsecured Variable Rate
NAB logo
Variable1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
8.49%
to 20.49%
Comp. Rate (p.a.)
9.54%
to 21.49%
Application Fee
$250
Monthly Fee
$10
Monthly Repayment
$649.15
Go to siteMore Info
Jacaranda Finance Express Personal Loan
Jacaranda Finance logo
Fixed25 Months - 4 Years $3,000 - $25,000
Interest Rate (p.a.)
14.95%
to 27.95%
Comp. Rate (p.a.)
29.30%
to 42.80%
Application Fee
$130 - $990
Monthly Fee
$24
Monthly Repayment
$751.11
Go to siteMore Info
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Showing 8 of 8 results

I'm 18 and need a loan. What are my options?

While 18-year-olds are eligible for personal loans, younger borrowers are less likely to have regular income, a history of savings or any credit history. And this makes it harder to get a loan.

You may have to work a little harder to prove you're a good borrower. And you could try some of the following options:

1. Get a loan from your current bank

One of the problems you can face when applying for a loan is that you have limited or no credit history. You can get around this by applying for a loan with your current bank, who you may already have a history with. This history could include transaction accounts, travel cards, or any other banking product.

Banks offer a variety of personal loans, including secured and unsecured loans. You may have a better chance with a secured loan, as providing collateral will make you seem less risky to lenders.

2. Get a secured car loan

If you're looking to purchase a car, a secured loan may be a good option. The loan will be secured against the car you are purchasing, allowing the lender to recoup their losses if you default on the loan.

As the risk to the lender is lower, secured loans also come with a lower rate than unsecured loans.

There are a number of new and used car loans you may be able to apply for.

3. Apply with a guarantor or make a joint application

A guarantor loan means someone signs onto the loan alongside you. You are still responsible for meeting the payments however, if you are unable to, your guarantor will be obliged to pay instead.

Your guarantor will need to approved by the lender, and often they will ask that it is your parent, guardian, or close relative. They will also need to prove that they will be able to financially meet their obligations through their own credit history and financial stability.

Similarly, a joint application loan also has someone sign onto the loan with you. However, in this situation they are equally obliged to meet payments, as opposed to only if you are unable to. With this loan type, the asset you buy will shared by you both so only enter into this agreement with someone you trust personally and financially.
Here are some loans that accept guarantors. There are also joint application personal loans.

4. Try a pay on demand app

Pay on demand is a type of short term loan, allowing you to borrow a portion of your pay cheque before your payday. Sometimes your employer will have an agreement directly with these lenders that you can access, however, there are also apps that allow you to do this independently. In exchange for accessing a portion of your pay cheque early, you'll have to pay a fee.

This is not a long term financial solution. While the fees may seem fairly small, they can add up significantly if you frequently use an app or service like this.

5. Go for a small short term loan (in an emergency)

These are loans with short terms and small borrowing amounts, also known as payday loans. They are more expensive than regular loans, and should never be a long term financial solution due to their price. They do however have much more flexible eligibility criteria.

These loans are highly regulated in Australia, so you can only borrow up to $2000. It is best to use these loans only in an emergency, and only for as much as you need.

How do I compare loan options at 18 years old?

It's always important to compare loan products before applying, as even minor differences in features can save you money. You can learn more about the features to look out for in personal loans in our dedicated guide to personal loans, but these are the key things to compare.

  • Type of interest. There are 2 types of interest, fixed and variable interest. With fixed interest rates, your interest will remain the same throughout the lifetime of your loan. This makes it easy to budget for and predict repayments. With variable interest rates, your interest rate can fluctuate on a monthly basis, based on market interest rates. This means that your repayments can change from month to month. This can make it more difficult to budget for and predict.
  • Interest rate. This is how much you'll be charged for borrowing money. It is displayed as a percentage of the total amount borrowed. The higher the interest rate, the more you'll have to pay every month.
  • Comparison rate. Apart from the interest rate, you also have to look at the comparison rate. This is the interest rate, and also includes the loan's fees and charges. It's an indication of the true cost of the loan. This figure is also displayed as a percentage, next to the interest rate. It's important to look at the comparison rate as some loans may advertise low rates, but charge high fees.
  • Fees. Some fees are not included in the comparison rate, as they are only charged in certain circumstances. Of these fees, the two most common are late payment (or dishonour) fees, and early repayment or break fees - which are only payable if you want to pay off your loan early.
  • Loan terms. This is the length of the loan, or how long you have to repay the loan. This is important to note because it will affect your repayments. As a general rule, a longer loan term means you pay less each month but more overall.
  • Borrowing amounts. This is the size of the loan, outlining the minimum and maximum borrowing amounts. It's generally a bad idea to take out multiple personal loans, so ensure the one you apply for meets your needs.
  • Flexible repayments. Depending on the lender, loan repayments can be made weekly, fortnightly or monthly. It's important to know the frequency of the repayments because they may not align with your pay cheque. If the repayment schedule is flexible, you can tailor it to your ability to repay and not be left out of pocket.

Tips to improve your chances for a loan at 18

Money bag

Show you have savings

Saving shows that you're financially responsible and can meet your loan repayments.

Money near clock

Avoid over-using Buy Now, Pay Later

While not every lender looks at this, Buy Now, Pay Later products are a form of debt and using too many, or using them too often, can negatively affect how lenders see you.

Closed padlock

Apply for a secured loan

Secured loans are less risky for lenders as they can repossess the asset you use to secure the loan, covering the cost. Secured loans also come with lower interest rates than unsecured loans.

Money with downward arrow

Apply for a lower amount

If you apply for too much with little or no credit history, especially without a high enough consistent income, you could face an automatic rejection. Applying for a lower amount can reduce the risk of rejection.

How can I apply for a personal loan?

🖩 Calculate how much you can afford to borrow. You should take into consideration the fees, interest rate and repayment terms. You can use a personal loan calculator for this.

🔎 Start comparing lenders and loan products. Include interest rates, fees and terms in your comparison.

Select lender. Select a lender which gives you the best rates and terms that suit your budget.

🖨️ Organise and prepare the required documentation. This can include proof of identification, income and bank statements.

🔓 Apply for a loan. Click "Go to site" to start the application process.

📅 Schedule your repayments. Make sure you pay on time. Most lenders will ask for direct debit payments, so make sure you have the money in your account. You can be charged a default fee if you miss a payment or fail to pay.

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Frequently asked questions about taking out a personal loan at 18

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Written by

Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

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Rebecca has written 187 Finder guides across topics including:
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8 Responses

    Default Gravatar
    OcyahnDecember 31, 2017

    Hi,
    I’m looking at applying for finance to buy a car, I’ve only been in my current job for 2 months as a casual but my employer is happy to write a letter of job security is there anything that he can write that will increase my chances of getting a loan??
    Thank-you

      AvatarFinder
      RenchJanuary 3, 2018Finder

      Hi Ocyahn,

      Thanks for reaching out to Finder.

      There are lenders that might consider a car loans for casual workers. You may refer to our comparison table to see which lender suits you.

      Please click the name of the lender or the “More info” link to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Best regards,
      Rench

    Default Gravatar
    BriannaOctober 11, 2016

    When can I maybe get the money if not the hole 5,000 then maybe 2,000

      AvatarFinder
      ElizabethOctober 12, 2016Finder

      Hi Brianna,

      If you’d like to apply for a loan you can find out about some of your options above. Your eligibility depends on your financial situation so check the eligibility criteria before you apply.

      Hope this helps,

      Elizabeth

    Default Gravatar
    PrateekSeptember 25, 2016

    How can i get a loan of $2000 at the age of 18.

      AvatarFinder
      ElizabethSeptember 26, 2016Finder

      Hi Prateek,

      You can have a read of the guide on the page above to find out how may be able to be approved. You can also compare some of your loan options – make sure you read the eligibility criteria on the review pages to check you are eligible.

      Thanks,

      Elizabeth

      Default Gravatar
      ChaniceDecember 2, 2016

      I am 18 can I get a loan

      AvatarFinder
      DeeDecember 2, 2016Finder

      Hi Chanice,

      Thanks for your questions.

      Yes, the lenders on this page may consider you for a loan if you are 18 years old. However, please note that other eligibility criteria apply.

      Please do click the name of the loan product you are interested in to know the requirements and criteria to apply.

      Cheers,
      Anndy

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