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.
| Lender | Minimum income required | Review the loans |
|---|---|---|
| ANZ | $15,000 p.a. | Review |
| Bankwest | $20,000 p.a. | Review |
| Bank of Melbourne | No minimum | Review |
| BankSA | No minimum | Review |
| bcu | No minimum | Review |
| Bendigo Bank | No minimum | Review |
| Citi | $40,000 p.a. | Review |
| CommBank | No minimum | Review |
| CUA | No minimum | Review |
| IMB | No minimum | Review |
| Latitude | $24,000 p.a. | Review |
| ME Bank | No minimum | Review |
| NAB | No minimum | Review |
| Plenti | No minimum | Review |
| RACQ | No minimum | Review |
| RACV | No minimum | Review |
| SocietyOne | $30,000 p.a. | Review |
| St.George | No minimum | Review |
| Westpac | No minimum | Review |
| Lender | Minimum income required | Review the loan |
|---|---|---|
| Cash Converters | $300 per week | Review |
| Cash Train | $1,200 per month | Review |
| ClearLoans | No minimum | Review |
| Fair Go Finance | $500 per week | Review |
| MoneyMe | No minimum | Review |
| MoneySpot | No minimum | Review |
| Nimble | No minimum | Review |
| Swoosh Finance | $300 per week | Review |
| Sunshine Loans | $300 per week | Review |
| Wallet Wizard | No minimum | Review |
Use Finder to compare personal loans to make sure you're getting the better deal. Remember to check the eligibility criteria!
| 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% |
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.
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.
There are a few things you can do if you find out you don’t meet the minimum income requirements:
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If you don't quite meet the criteria for a personal loan, applying with a guarantor can help get your application over the line.
lendlab is an Australian lender that offers personal loans to both good and bad credit applicants. Find out more about lendlab's rates, fees and features.
An unsecured personal loan with interest rates tailored to your risk profile.
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.
Are you in need of a larger loan but concerned about your credit history? There still may be options available, no matter your credit history. Read our guide to find out what might be available to you.
If you're thinking about getting an apprentice loan, explore the possibility of government-sponsored loans as well as loans offered by banks. Find out everything you need to know to compare your options.
Not all personal loans come with endless documentation. Some lenders specialise in quick and easy application processes.
How to apply for a $5,000 loan and what you should keep in mind before applying.
Find out your loan options if you're casually employed, or are part time and don't work a full 40-hour week.
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