Know what to prepare, what lenders check and what to understand before you borrow.
Thinking about a personal loan? Before applying, check whether you meet the lender’s requirements, what documents you need and how much you can comfortably repay.
Here’s a simple guide to getting started.
Before you begin check are you eligible
- Be at least 18 years old.
- Meet the lender’s residency or visa requirements.
- Have income you can verify.
- Afford repayments alongside your living costs and existing debts.
- Provide identification and complete the required checks.
Meeting these requirements allows you to be considered – it does not guarantee approval.
Work visa holders, casual workers and self-employed applicants: some lenders may consider your circumstances. Ask about their requirements before submitting an application.
Step 1
Decide how much you need
Start with the actual cost of what you want to pay for. Avoid borrowing extra simply because a higher amount is available.
If you are consolidating debts, obtain current balances and check whether settlement fees apply.
Step 2
Check your budget
Calculate what remains from your take-home income after rent or mortgage payments, groceries, transport, bills and existing repayments.
Leave room for unexpected expenses. Your loan payment should fit your everyday budget, without depending on everything going perfectly.
Step 3
Compare the full cost
Look beyond the weekly repayment. Compare:
- Interest rate.
- Fees and charges.
- Loan term.
- Total amount repayable.
- Early-repayment conditions.
- Any asset required as security.
A longer term may reduce each payment but increase the total interest you pay.
Step 4
Prepare your documents
The lender may request:
- Photo ID.
- Recent payslips or other income evidence.
- Bank statements.
- Details of existing debts and credit limits.
- Visa evidence, if relevant.
- Business and tax records if you are self-employed.
Ask which documents and statement periods are required. Provide complete, accurate information.
Step 5
Submit your application
The lender assesses your income, expenses, debts and credit history. It may ask for additional documents or clarification before making a decision.
Avoid submitting several applications without understanding whether each involves a credit check.
Step 6
Review the offer before signing
Check the repayment amount, first payment date, fees and total cost. If the loan is secured, understand which asset could be at risk if you do not repay.
Ask questions before accepting. Once the loan is finalised, funds are paid as agreed and repayments begin on the scheduled date.
Your next step
Talk to Mortgage Advisors
Not sure whether you are eligible? Speak with a Mortgage Advisors broker about your circumstances, documents and available options.
