Some lenders don't have a minimum income requirement to get a loan. They asses your credit score, income, debts and loan amount together.
Use a personal loan repayment calculator to check what repayments fit within your budget before applying to improve your approval chances.
If you don't meet a lender's income requirement, lower your loan amount or apply with your current bank where you already have a good financial history.
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.
Some lenders will need you to earn over $30,000 p.a. to be eligible, while others only need you to be making over $300 per week. There are also lenders that don't have a minimum income requirement, although these loans are usually more expensive.
What income do I need to earn to be approved for a personal loan?
Finder survey: How many Australians of different ages have used a buy now pay later service?
Response
75+ yrs
65-74 yrs
55-64 yrs
45-54 yrs
35-44 yrs
25-34 yrs
18-24 yrs
No
85.11%
71.52%
59.24%
47.02%
34.78%
32.11%
41.9%
Afterpay
6.38%
19.39%
28.66%
34.52%
48.37%
55.26%
43.81%
PayPal Pay in 4
6.38%
11.52%
10.83%
19.64%
26.09%
22.63%
10.48%
Zip
4.26%
3.03%
12.1%
16.67%
26.09%
25.26%
20.95%
Other
2.13%
2.42%
3.18%
2.38%
2.72%
2.11%
3.81%
Humm
3.64%
3.82%
5.36%
5.98%
5.79%
5.71%
Klarna
1.82%
4.76%
5.98%
6.32%
5.71%
Openpay
1.21%
1.91%
4.17%
8.7%
6.32%
2.86%
Bundll
1.19%
1.58%
Source: Finder survey by Pure Profile of 1016 Australians, December 2023
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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.
Frequently asked questions
You may be able to borrow money when you're earning a low income, but your options may be more limited than if you had a higher income stream to support the loan repayments. Lenders may offer smaller loan amounts and charge higher interest rates. Consider looking for lenders who specialise in loans for low-income earners or government assistance programs.
Many lenders offer personal loans starting from $1,000 to $5,000 as the minimum loan amount. However, smaller loans might come with higher interest rates, so it's important to compare loan options.
Getting a $10,000 personal loan is not necessarily hard, but it depends on factors like your income, credit score and debt levels. Lenders will assess your ability to repay before approving the loan. A stable income and good credit score will improve your chances.
Lenders generally prefer applicants who have been employed for at least 3 to 6 months, but the exact time can vary. Some lenders may be more flexible, especially if you have a strong credit history or other sources of income.
You can get a personal loan while earning an income through casual employment, though it may be more difficult than it would be with a full-time job, as that is considered less risky. Lenders will look at your overall income stability, including casual wages and other income sources. You may need to provide proof of consistent earnings.
Yes, self-employed applicants can qualify for a personal loan. You'll generally need to provide proof of income, such as recent tax returns, business activity statements, or bank statements, to show stable and sufficient earnings. Some lenders also offer low doc loans designed for self-employed borrowers who can't provide standard payslips.
Some lenders will accept Centrelink benefits as part of your income, but typically only certain types of payments qualify, such as the Age Pension or Disability Support Pension. You'll need to check the lender's policy, as not all Centrelink payments are eligible or may only be considered partially.
If you don't meet the minimum income, you may still have options like applying with a guarantor, choosing a secured personal loan, or reducing your loan amount. Alternatively, you could work on improving your financial situation - for example, by increasing regular income, lowering existing debts, or improving your credit score - before applying again.
Yes, lenders offering bad credit personal loans usually set their own minimum income requirements. These may be higher than for standard loans to offset the additional risk. You'll also need to show you can comfortably meet repayments alongside your other expenses.
Lenders typically check your income through documentation such as payslips, tax returns, or bank statements. Many now use secure digital verification tools to access your bank statements online, which helps speed up the application process and confirm your income and expenses accurately.
Yes, applying jointly with another person - such as a partner or family member - can improve your chances of approval. The combined income and credit history are assessed and both borrowers share responsibility for the repayments.
Lenders may be more flexible with income requirements if you have a strong credit score, as it shows you're a lower-risk borrower. Conversely, if your credit score is lower, you might need to demonstrate a higher income or provide extra evidence of financial stability.
Yes, lenders consider both income and living expenses when assessing your application. They use this information to calculate your borrowing capacity and ensure you can meet repayments without financial stress or hardship.
Secured loans may have lower minimum income requirements since the asset you use as security reduces the lender's risk. Unsecured loans typically have stricter income and credit criteria because they aren't backed by collateral.
Generally, smaller loan amounts, secured loans, or loans from lenders specialising in low-income or alternative income applicants are easier to qualify for. Comparing multiple lenders and checking their eligibility criteria before applying can help you find the best fit.
Why compare personal loans with Finder?
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.
Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024.
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I am on Centerlink payments jobseeker and I own my own unit out right nothing owing,I get board from my flatmate of 90 PW I have never had any credit before but would like to borrow 20000 over 3yrs could I have a chance if I put my unit as security?
Finder
SarahJune 25, 2024Finder
Hi Angela,
If you’re willing to put your property as security, that would definitely help you application. You would actually apply for a home loan, as the home is the security against the loan. Your chances of approval depend on a range of things, including the length of the loan, your income and other debts.
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.
With a high Finder Score of 9.2, Pepper Money Unsecured Fixed Rate Personal Loan ranks among the top 13% in our database. Its competitive minimum interest rate from 5.95% is in the top 10% of the lowest rates available.
The NAB unsecured 10k+ personal loan allows you to borrow money for the consolidation of debts, a holiday trip or a new car. Learn more about the features and benefits of this loan and how to apply online.
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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.
I am on Centerlink payments jobseeker and I own my own unit out right nothing owing,I get board from my flatmate of 90 PW I have never had any credit before but would like to borrow 20000 over 3yrs could I have a chance if I put my unit as security?
Hi Angela,
If you’re willing to put your property as security, that would definitely help you application. You would actually apply for a home loan, as the home is the security against the loan. Your chances of approval depend on a range of things, including the length of the loan, your income and other debts.
To see what some of your options may be, you can review some loans here.
Hope this helps!
I earn $565 per week. Am I able to borrow $5000?
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