single-parent-loans

Personal Loans for Single Parents

Rates and fees last updated on

If you’re a single parent, know that there are options available to you when it comes to personal loans.

When you’re earning a single income, trying to get a personal loan can seem like an uphill battle. The eligibility criteria for many banks and lenders can be difficult to meet on a sole income, but you still might need that car, those home repairs, or that money for bond.

This guide will take you through what you need to know about being approved for a personal loan.

Why might a single parent not be approved for a personal loan?

Single parents are judged by the same lending guidelines as every other borrower, but the fact that they rely on a single income and are often solely responsible for their debts means that they often don’t meet these requirements.

Single parents may also be receiving Centrelink payments, which some lenders won’t recognise as a source of income. Single parents may also be only working part-time and so fail to qualify for the minimum income requirements.

What income do you need to receive to get a personal loan?

LenderShort term loanMinimum incomeLearn more
Cash ConvertersMedium Personal Loan$1,000 per weekMore
Cash TrainCash Loan$1,200 per monthMore
Credit24Personal Loan$1,000 per monthMore
DollarsDirectShort Term Personal LoanNo minimumMore
Fair Go FinancePersonal Loan$500 per weekMore
FerratumPayday LoanNo minimumMore
MoneyMeShort Term LoanNo minimumMore
NimbleShort Term LoanNo minimumMore
Sunshine LoansShort Term Loan$450 per weekMore
Swoosh FinancePersonal LoanNo minimumMore
LenderPersonal LoanMinimum incomeLearn more
act.Unsecured Personal LoanNo minimumMore
ANZPersonal Loan$15,000 p.a.More
BankwestUnsecured Personal LoanNo minimumMore
Bank of MelbourneUnsecured Personal LoanNo minimumMore
BankSAUnsecured Personal LoanNo minimumMore
bcuUnsecured Multipurpose LoanNo minimumMore
Bendigo BankUnsecured Personal LoanNo minimumMore
CitibankReady Credit$35,000 p.a.More
Commonwealth BankUnsecured Personal LoanNo minimumMore
CUAPersonal LoanNo minimumMore
IMBPersonal LoanNo mimumumMore
Latitude FinancialPersonal Loan$24,000 p.a.More
ME BankPersonal LoanNo minimumMore
NABPersonal LoanNo minimumMore
RACQUnsecured Personal LoanNo minimumMore
RACVPersonal LoanNo minimumMore
RateSetterPeer-to-Peer LoanNo minimumMore
Society OnePeer-to-Peer Loan$25,000 p.a.More
St.GeorgeUnsecured Personal LoanNo minimumMore
WestpacUnsecured Personal Loan$15,000 p.a.More

How do I know if I can afford a personal loan on a single income?

Before applying for any loan, you should consider using the calculator below to get an idea of what your repayments might be. Keep in mind this is only a guide, and each lender will assess your borrowing power differently.

How to compare your personal loan options

While you may feel you have limited options, it’s still important to compare the products you do find available to you to ensure you get the best option for you.

  • Interest rate. Compare both your fixed and variable rate personal loan options and find a rate that is competitive.
  • Fees. Personal loans come with both upfront and ongoing fees, so compare these as well as they will contribute to the cost of the loan. Short term loans under $2,000 only come with fees, no interest, so take these into consideration when deciding how much to borrow.
  • Restrictions. You may be restricted as to how much you can borrow, whether you’re able to make extra repayments or if you can repay the loan early.
  • Repayment flexibility. This is an important consideration, as it could affect your ability to manage the loan. See if you’re able to make weekly, fortnightly or monthly repayments and if these will line up with your pay frequency. You should also note your ability to make additional repayments.
  • The lender. The actual lender you’re borrowing from should factor into your decision, as this is a business you’ll have to deal with for the next few months or years. See how easy the lender is to contact and, if possible, read a few third-party customer reviews of the lender online.

How to improve your chance of being approved for a loan

  • Check your credit score. Check your credit score for free with finder to find out what kind of borrowing position you're in. The higher your score, the less of a risk you appear to the lender.
  • Get advice. You can get in touch with a free financial counsellor who can take you through your financial options. Give the hotline a call on 1800 007 007.
  • Consider alternatives. There is a range of alternative loan options that include low- and no-interest loans. These are designed to help people on low incomes pay for necessary expenditures such as car or home repairs.
  • Borrow a lower amount. You should only borrow as much as you need and that you can afford. Lenders may reject your loan application if they think you can't afford the repayments rather than offering you a lower amount.
  • Talk to the lender before you apply. Discuss your eligibility with the lender before you apply. Remember that every loan application you make will show up on your credit file, and too many applications in a short space of time may appear irresponsible.

How to apply for a personal loan

If you’re looking to apply for a personal loan you can first compare your options using the comparison tables on this page and across finder.com.au. Once you’ve found a loan that you want to apply for, review the application requirements and click ‘Go to Site’ to be redirected through to the lender’s online application form.

Personal loan comparison for single parents

Pepper Money Unsecured Fixed Rate Personal Loan

Pepper Money Unsecured Fixed Rate Personal Loan

from

9.99 % p.a.

fixed rate

from

9.99 % p.a.

comparison rate

  • Fast turnaround
  • Loans amounts from $5,000
  • Competitive fixed rate
Security Logo

100% confidential application

Pepper Money Unsecured Fixed Rate Personal Loan

Apply for a Pepper Money Unsecured Fixed Rate Personal Loan and get competitive interest rate offer with a flexible range of repayment options and no monthly fees.

  • Interest rate from: 9.99% p.a.
  • Comparison rate: 9.99% p.a.
  • Interest rate type: Fixed
  • Application fee: $0
  • Minimum loan amount: $5,000
  • Maximum loan amount: $50,000
Go to site

Rates last updated December 15th, 2017
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Pepper Money Unsecured Fixed Rate Personal Loan
From 9.99% (fixed)
9.99%
$5,000
1 to 7 years
$0
$0
Apply for up to $50,000 and receive conditional approval within minutes.
Harmoney Unsecured Personal Loan
From 6.99% (fixed)
7.69%
$5,000
3 to 5 years
$0
$500 (Upfront fee)
Interest rates are tailored to each applicant individually, and start from as low as 6.99% p.a. to 29.99% p.a. based on credit history.
SocietyOne Unsecured Personal Loan
From 7.5% (fixed)
9.51%
$5,000
2 to 5 years
$0
3% (of loan amount)
Based on your risk profile, you will receive a tailored rate between 7.5% and 20.14% with a SocietyOne personal loan.
NOW FINANCE Personal Loans
From 8.95% (fixed)
10.42%
$4,000
1.5 to 7 years
$13
$395 (Based on $10,000)
Get rewarded with a low interest rate for your good credit history. Rates from 8.95% p.a. to 16.95% p.a. depending on your credit score.
Latitude Personal Loan (Unsecured)
From 13.99% (fixed)
15.19%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
An unsecured loan designed for multiple purposes – renovating, buying a car or travelling. Funds can be in your account in as little as 24 hours.
NAB Personal Loan Unsecured Fixed
14.99% (fixed)
15.85%
$5,000
1 to 7 years
$10
$150
An unsecured loan available for a wide range of purposes for a long period of time up to 7 years. You must have held a NAB Credit Card or Transaction account for at least 6 months before applying.
Westpac Unsecured Personal Loan
From 12.99% (fixed)
14.14%
$4,000
1 to 7 years
$12
$250
Borrow up to $50,000 for a term of up to 7 years with the unsecured Loan from Westpac
NAB Personal Loan Unsecured Variable Rate
14.69% (variable)
15.55%
$5,000
1 to 7 years
$10
$150
An unsecured loan with a redraw facility that allows you to access money you've paid in advance. You must have held a NAB Credit Card or Transaction account for at least 6 months before applying.
Bank of Melbourne Unsecured Variable Rate Personal Loan
From 12.99% (variable)
14.06%
$3,000
1 to 7 years
$12
$0 (On new loan applications before 18th January 2018.)
An unsecured personal loan that gives you a choice between a fixed or variable rate. Apply before 18 Jan 2018 for a $0 application fee. Conditions apply.

Compare up to 4 providers

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Related Posts

Harmoney Unsecured Personal Loan

Interest rates are tailored to each applicant individually, and start from as low as 6.99% p.a. to 29.99% p.a. based on credit history.

SocietyOne Unsecured Personal Loan

Based on your risk profile, you will receive a tailored rate between 7.5% and 20.14% with a SocietyOne personal loan.

NAB Personal Loan Unsecured Variable Rate

An unsecured loan with a redraw facility that allows you to access money you've paid in advance. You must have held a NAB Credit Card or Transaction account for at least 6 months before applying.

NOW FINANCE Personal Loans

Get rewarded with a low interest rate for your good credit history. Rates from 8.95% p.a. to 16.95% p.a. depending on your credit score.

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6 Responses

  1. Default Gravatar
    JodiMay 8, 2017

    Single now was doing well but things have got hard with having a son with alot of health problems and looking to find a better loan for my car as im paying $400 a forenight and a few little bills that i keep put off and with the cost of living going up, just need a helping hand to put me on the right path.

    • Staff
      HaroldMay 8, 2017Staff

      Hi Jodi,

      Thank you for your inquiry.

      With Personal Loans for Single Parents, if you’re looking to apply for a personal loan you can first compare your options using the comparison tables on this page and across finder.com.au. Once you’ve found a loan that you want to apply for, review the application requirements and click ‘Go to Site’ to be redirected through to the lender’s online application form.

      I hope this information has helped.

      Cheers,
      Harold

  2. Default Gravatar
    PriscillaMarch 13, 2016

    Hi I work part-time I am a certified massage therapist I work out of my house I just recently lost my job with Home Depot so I only have my self employed right now I am a single parent with 3 kids to provide for I am a little behind on one or two payments and I just need help financially so that way I don’t lose everything that i worked hard for.looking for a company that will loan me money and I can pay in payments over time

    • Staff
      ElizabethMarch 14, 2016Staff

      Hi Priscilla,

      You might want to consider some of the low doc personal loans on this page that are designed for self-employed applicants, or if these loan amounts are too much, there are also payday loans you can consider. Alternative financial solutions can also be found on this page and if you’re looking for personal advice you can consider calling the free financial counselling service on 1800 007 007.

      I hope this information will be of use.

      Thanks,

      Elizabeth

  3. Default Gravatar
    August 21, 2015

    I’m a single mum of a 8 month old and a 2 yr old I’m on a parenting payment in and benifits. I have had a bad past where my ex has left bad credit on my file. I’m looking to start again as I had to sell my car for my father’s funeral as well as taken out some small time loans coz no one would help me. I’m looking for a personal loan to buy a second hand car as I really need and to put all my bills in one payment with a little bit to spare can u plz help me I’m as far down as I can go and I would love for something to go right. No matter how hard I try I can’t seem to be the best I know I can be. It is cheap to buy a house then rent. Anything anything at all. Can u help me

    • Staff
      ElizabethAugust 21, 2015Staff

      Hi Sarah,

      Thanks for your question and sorry to hear about your situation.

      You might want to take a look at this page that provides a guide on borrowing when you’re unemployed, towards the bottom of the page is also a list of alternative loan options you might want to consider that include no and low interest loans schemes. We cannot offer any personal advice but you can get free financial advice by calling the Free Financial Counselling hotline on 1800 007 007.

      I hope this has helped.

      Thanks,

      Elizabeth

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