Unsecured Personal Loan

Unsecured personal loans allow you to borrow up to $75,000 without having to provide any security, such as a car or property.

Usually, unsecured personal loans are repaid with interest over a period of one to seven years and can be used for anything, within reason:

• Financing a car purchase or a holiday
  

• Consolidating debt
  

• Renovating a property
  

• Covering unexpected personal expenses
  

• Almost any personal cost or expense
  

You’ll often get the best deal if you can compare multiple personal loan offers from multiple lenders.

Choosing the first offer you find may not always get you the lowest rate available or the lowest amount of initial or ongoing fees. You can do that simply by using our smart-form.

Before you apply for an unsecured personal loan, let’s look at how they compare to secured personal loans. Unsecured loans generally have:

• Higher interest rates
  

• Shorter loan terms
  

• Lower maximum loan limits
  

The more restrictive features are due to lenders viewing these loans as higher risk. Despite those drawbacks, there are a few reasons why you may opt for an unsecured personal loan:

• You don’t have any assets that the bank will accept as security
  

• You don’t want to risk using your assets as security
  

• You want to purchase an asset that your lender won’t accept as security
  

With an unsecured loan, you can borrow money even if you don’t have a car or property to use as security. Plus, your assets won’t be at risk of being repossessed by your lender immediately if you default on payments.

You can compare unsecured personal loans based on a number of loan factors. Rates, fees, and other loan details will vary between lenders - so just make sure you’re comparing loans of equal amount and term.

When comparing unsecured personal loans consider the following:

• Loan amount
  

• Loan term
  

• Loan fees
  

• Interest rates
  

• Loan features
  

Unsecured personal loans have a number of useful features that may be convenient for certain borrowers, or make it easier to repay a loan amount. These include:

• Redraw facility: a feature that allows you to withdraw any extra repayments you’ve made. May come with extra fees.
  

• Repayment flexibility: the choice to make repayments weekly, fortnightly or monthly to suit your lifestyle or pay cycle.
  

• Extra repayments: the ability to make extra repayments or pay your loan off early without incurring fees.
  

If you do not find any available offers to compare, you can work with a personal finance broker to assist in finding you a suitable deal and completing your application.

Brokers operate all across Australia — whether you need an unsecured personal loan in Canberra, Newcastle, Sydney, Melbourne, Brisbane, Perth, or Adelaide, you'll be able to find one who can help you assess a range of suitable options specific to your financial circumstances.

The best unsecured personal loan rates you’ll see advertised are typically available to borrowers with the best profile, not the majority of applicants. This is because:

• Lenders advertise their lowest rates because they’re appealing and, if you qualify, represent their best deal.
  

• Fees aren’t included in the advertised rate for a loan, which doesn't represent a truly accurate cost for the customer.
  

• The true cost of a loan is found by looking at the comparison rate, which expresses all charges (interest plus fees) as a simple percentage.
  

If you are using our smart form, the advertised rate and comparison rate will be clearly displayed on your personalised results screen, which you can use to quickly compare and select the deal you think is best.

Money.com.au aims to clear up the confusion around rates and approval, so we can provide the best consumer experience possible. We only show you real, personalised rates from lenders who can give you approval on the loan.

No impact on your credit score, and no obligation. Just the best deals we can find, with no hidden fees, inflated interest rates, or paid promotions.

You can apply for an unsecured personal loan in Australia if you are:

• Over the age of 18; and
  

• An Australian citizen or permanent resident; and
  

• Employed or have a regular source of income over $25,000 per year
  

If you meet the basic eligibility for a personal loan, you will then need to compare lenders and assess their individual approval criteria.

To get a loan you will need to:

• Submit a personal loan application to a lender
  

• Meet the lender’s approval criteria for the personal loan
  

• Sign a loan contract and agree to the terms of the loan
  

The most important factor when gaining approval is to demonstrate your ability to meet the repayment schedule over the term of the loan.

If you use our smart form and find a lender you want to apply with, you will be directed to the lender’s website and need to supply all documentation as you normally would when applying for an unsecured personal loan, which may include:

• Proof of identity — e.g. passport or driver licence
  

• Proof of income — e.g. payslips, bank statements
  

• Proof of address — e.g. utility bills, bank statements
  

• Details of any current debts or other loans
  

You will need to provide personal identification and financial documents (usually your bank statements or recent payslips), as lenders will need to assess your financial stability and determine if you can service the loan amount.