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If you need a personal loan, you may feel limited by some of the eligibility requirements. For example, income and assets can be difficult to prove if you are self-employed or your wealth is tied up in investments. Alternatively, you may have defaults on your credit file that prevent you from applying for certain loans. If any one or more of these situations apply to you, opting for a low doc personal loan may be an option to consider.
What's in this guide?
- How do low doc personal loans work?
- Compare low doc personal loan options
- What features come with these loans?
- How to increase your chances of being approved if you're self-employed
- Low doc loans for bad credit applicants
- Lenders offering low doc personal loan options
- How do I compare low doc personal loans?
- Weigh up the benefits and drawbacks before applying
- Is there anything to consider before you apply?
- Here's how you can apply
- What documentation do you need to apply for a low doc personal loan?
- Bad credit applicants considered
- Fast approval service
- Borrow up to $2,000
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Sunshine Short Term Loans
This is a short-term loan offer with a fast and easy online application for good or bad credit borrowers. You can apply today to get approved for up to $2,000. Get your loan funded in 30 minutes - conditions apply.
- Loan Amount: $2,000
- Loan Term: 9-14 weeks
- Turnaround Time: 30 minutes - conditions apply
- Fees: 20% of loan amount + 4% of loan amount each month
- Bad credit borrowers OK
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Compare low doc personal loan options
What features come with these loans?
Low doc personal loans generally come with the same features as other personal loans as well as flexible eligibility features that can make them an option for people who do not qualify for other forms of credit. Some of the features include the following:
- Standard application. These loans require less documentation than others, but the application process is usually the same as a regular personal loan. The lender will still need evidence that you're able to repay the loan, whether it be through tax statements or bank statements.
- Fees and rates. As these loans require less proof of financial stability, lenders may charge higher fees and rates to offset the risk of lending the money.
- Variable or fixed. Depending on the loan you opt for, you may be able to select a fixed or variable rate option to suit your financial needs.
- Flexible loan purposes. Low doc personal loans may allow you to borrow money to finance personal or business needs, making them a suitable option to consider for various types of loan requirements.
How to increase your chances of being approved if you're self-employed
There's no one way to make sure you're approved for a loan, but here are a few options to keep in mind if you're looking for financing while receiving an irregular income:
- Consider a guarantor. By applying with a guarantor, you can give a lender a guarantee that the loan will be repaid.
- Apply with another person. A joint personal loan application is different to a guarantor. You and the person you're applying with are equally responsible for the loan. You both need to meet the criteria, but it can also help to bolster your application.
- Have at least two years of tax returns. This is a standard requirement for lenders, so ensure you have this when you are comparing.
Low doc loans for bad credit applicants
Getting a low doc loan can be an option if you have marks on your credit file. Different lenders will have different credit requirements for applicants. For example, some lenders may require two years without defaults, while others may require as much as seven years.
Lenders that do accept bad credit applicants usually personalise their rates in accordance with each applicant's credit score. This means that applicants with good credit histories will be rewarded with lower rates, while applicants with defaults may find that they have to pay more.
Another option for applicants with poor credit histories is to apply for payday or short term loans. However, these loans come with high costs attached and may only be available for lower amounts of funding. If you're unsure about your credit score, you can check it for free with Finder.
Lenders offering low doc personal loan options
|Lender||Interest rate||Loan amount||Available to self-employed?||Available to applicants with existing credit defaults?*||What documents are needed?|
|ANZ||12.99% p.a.||$5,000 to $50,000|
|Bankwest||10.99% p.a.||$3,000 to $50,000|
|Bank of Melbourne||12.99% p.a.||$2,000 to $50,000|
|BankSA||12.99% p.a.||$2,000 to $50,000|
|bcu||8.94% p.a.||$5,000 to $75,000|
|Bendigo Bank||12.79% p.a.||From $2,000|
|Citibank||20.49% p.a.||$5,000 to $75,000|
|Commonwealth Bank||11.50% p.a.||$4,000 to $50,000|
|CUA||11.89% p.a.||$5,000 to $60,000|
|Gateway Bank||9.84% p.a.||$3,000 to $30,000|
|IMB||9.54% p.a.||$2,000 to $30,000|
|Latitude Financial||7.99% p.a.||$3,000 to $70,000|
|ME||10.98% p.a.||$5,000 to $50,000|
|MoneyMe||8.99% p.a.||$3,001 to $50,000|
|NAB||9.99% p.a.||$5,000 to $55,000|
|Plenti||6.49% p.a.||$2,001 to $45,000|
|RACQ||9.34% p.a.||$3,000 to $60,000|
|RACV||6.49% p.a.||$5,000 to $30,000|
|SocietyOne||6.99% p.a.||$5,000 to $50,000|
|St.George||12.99% p.a.||$2,000 to $50,000|
|Westpac||11.99% p.a.||$4,000 to $50,000|
*Lenders listed as accepting borrowers with credit defaults may still deny applications based on credit history, depending on the extent of the applicant's bad credit. The advertised interest rate may also not apply to applicants with bad credit. If you suspect that you have bad credit, please contact the lender directly prior to submitting an application.
How do I compare low doc personal loans?
There are several features by which you can compare low doc personal loans:
- Interest rate. While low doc loans tend to have higher interest rates than standard personal loans, interest rates will still vary, so keep an eye out for rates that are more competitive.
- Fees. Some low doc loans may have high fees attached, even if the interest rate appears to be lower than that of a competitor. Therefore, it's a good idea to always check the comparison rate when comparing loans, as this takes into account both the interest and the mandatory fees.
- Loan term. Low doc loans also tend to have shorter loan terms than standard personal loans. Make sure to find a loan with a term that suits your circumstances.
- Repayment flexibility. If you're self-employed, you may have fluctuations in your income. Ensure that the loan's repayment terms are able to reflect your typical schedule, so you're not caught short and forced to miss a payment.
- Fixed or variable. Does the personal loan have a fixed or variable interest rate? Repayments for a fixed rate personal loan won't change over the life of the loan, making it easier to budget. That being said, variable rate personal loans often have longer terms, and possibly lower introductory rates. Which type of rate better suits your income?
Weigh up the benefits and drawbacks before applying
- These personal loans are an option for people who may not be able to apply for traditional personal loans.
- Less documentation is required to apply for these loans, which makes for a quick and easy application process.
- Low doc loans tend to have higher rates and fees.
- You might find fewer features and less flexibility than other personal loans.
Is there anything to consider before you apply?
Before you apply for a low doc personal loan, consider the following:
- Do you need the loan? The low doc features of these loans may attract borrowers for the wrong reasons. If you do not have a reliable income or stable assets to show as evidence to a lender, you may want to consider your ability to make the repayments. Decide if your financial situation is stable and if any changes could occur that may affect your ability to repay the loan.
- Have you planned your repayments? Not planning for a loan and how you're going to repay it is a common mistake, but one that can cost you if you miss any payments. Calculate your repayments and work out whether they will be manageable on your budget. This is even more important for low doc loans if you earn an irregular income or have unstable assets.
- Why are you applying? The purpose of the loan should also be considered. For instance, if you are looking at financing a car, you can consider a secured personal loan as you may be able to get a lower rate. If you want to make improvements to your home, you can consider a home equity loan/line of credit.
Here's how you can apply
To apply for a low doc personal loan, you can click on the "Go to site" button for any of the brands you see on the page above. From there, you will need to provide proof of your identity and also certain financial details. Eligibility requirements differ for each loan, and you can check these by clicking on the name of the loan and reading the review page before applying.
To be eligible, you will generally need to be over the age of 18 and a permanent Australian resident. Lenders will differ on their requirements regarding your credit history.
If you are looking for a low doc home loan, you can compare those here.
What documentation do you need to apply for a low doc personal loan?
The necessary documentation for a low doc personal loan will vary depending on the provider. Typically, you will be required to provide some, or all, of the following:
- Income declaration. A declaration of your income signed by an accountant will usually be required. In some cases, this may be all that you have to provide.
- ABN/ACN. Evidence of your Australian Business Number may also be mandatory by some lenders.
- GST registration. You may also have to provide evidence that your business is registered for GST. This can be up to 2 years worth of statements, but a minimum of 12 months is often required.
- Business Activity Statements (BAS). Copies of your BAS that you submit to the ATO may be requested. This is also usually a minimum of 12 months, but can be as much as 2 years worth of statements.
- Bank statements. Bank statements from your personal or business account may be needed by the lender.
- Tax returns. At least 2 years of old tax returns are usually required.
- Security. Depending on the level of documentation that you can supply and your ability to repay the loan, asset security may be requested by the lender as collateral on the loan.
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Personal Loan OffersImportant Information*
You'll receive a fixed rate between 6.99% p.a. and 25.69% 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.
You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% 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.
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.
You'll receive a fixed rate between 6.95% p.a. and 17.95% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Make additional repayments or pay off the loan early, penalty-free.
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