Finance for the things life doesn't always wait for.
Whether you are consolidating eligible debts, buying something important or covering a larger expense, Loan Location can help you compare personal loan options based on the repayment, fees, term and total cost — not just the advertised rate.
What is a personal loan?
A personal loan provides an approved amount of money that is generally repaid over an agreed loan term through regular repayments.
Personal loans may be secured or unsecured and may offer fixed or variable interest rates depending on the lender, loan purpose and borrower.
They can be used for a wide range of purposes, including vehicle purchases, debt consolidation, renovations, education, medical expenses, weddings, tools and other significant personal costs.
The important bit: finding a personal loan is relatively easy. Working out whether the rate, fees, term and repayment actually make sense together is the part worth looking at properly.
What are you looking to finance?
Personal loans cover a lot of territory. Start with what you are actually trying to do and we can work backwards from there.
Debt Consolidation
Too many repayments going in too many directions? A consolidation loan may allow eligible debts to be combined into one loan and one regular repayment.
Explore debt consolidation →Home Improvements
Renovations, repairs, upgrades and those projects that somehow grow from “just one room” into half the house.
Explore home improvement finance →Vehicle Purchases
Buying a car, motorbike, caravan or another vehicle? The right finance structure can depend on the vehicle, its age, the loan amount and whether security is involved.
Explore vehicle finance →Weddings
Venues, photography, catering, dresses and apparently chairs that cost substantially more once the word “wedding” is involved.
Explore wedding finance →Medical Expenses
Finance may help with eligible planned or unexpected medical, dental, specialist or treatment-related expenses.
Explore medical expense finance →Education
Courses, qualifications, professional development and other education costs that may help you take the next step.
Explore education finance →Tools for Trade
Need tools, equipment or other gear to get the job done? Personal or equipment finance may be available depending on what you are buying and how it will be used.
Explore tools and equipment finance →Personal loans without the mystery maths
Personal lending does not need to be complicated, but there are a few moving parts worth understanding before choosing a loan.
Simple rule: do not judge a personal loan by one number. A low advertised rate can lose some of its shine once fees, loan term and repayment structure are taken into account.
Secured, unsecured, fixed or variable?
Different personal loans are structured in different ways. The suitable option depends on the purpose, borrower, lender and the asset being financed.
Secured personal loan
A secured loan uses an acceptable asset as security for the loan. Vehicle loans are a common example. Security may affect pricing and lender options.
Unsecured personal loan
An unsecured personal loan does not rely on a specific asset as security. Rates and lending criteria may differ from secured lending.
Fixed rate
A fixed rate can provide greater repayment certainty because the interest rate is set according to the loan agreement for the relevant period.
Variable rate
A variable rate can change over time. Product features and repayment flexibility vary between lenders.
How Loan Location helps
You do not need to walk in already knowing which lender or loan product you want. Start with the problem you are trying to solve.
Tell us what you are trying to do
Buying something, clearing debt, covering an expense or funding a project? We start with the purpose rather than jumping straight to a product.
Look at your position
We consider income, regular expenses, existing debts, credit limits, loan purpose and the repayment you are comfortable carrying.
Compare suitable options
Different lenders can assess the same borrower differently. We can compare suitable lender options, rates, fees, terms and lending criteria.
Explain the differences
We break down the options in plain English so you can understand what you are committing to before making a decision.
Complete the application
Once you choose how you want to proceed, we help collect the required information and work through the lender application.
Stay with it through approval
If the lender needs additional information or clarification, we help keep the application moving.
What do lenders look at for a personal loan?
Personal loan approval is subject to lender assessment and there is no single set of rules that applies to every lender.
Depending on the application, lenders may consider:
- Your age and residency status.
- Employment and income.
- How long you have been in your current employment.
- Existing home loans.
- Personal loans and vehicle finance.
- Credit-card limits.
- Buy now, pay later and other commitments where relevant.
- Regular household and living expenses.
- Dependants and household commitments.
- Your credit history and repayment conduct.
- The amount you want to borrow.
- The purpose of the loan.
- Whether the loan is secured or unsecured.
Casual, contract or self-employed? That does not automatically rule out personal finance. Different lenders may simply require different forms of income evidence.
What should you compare between personal loans?
Rate matters, but it is not the only thing affecting the cost or usefulness of the loan.
Interest rate
The interest rate directly affects the amount of interest charged over the life of the loan.
Comparison rate
Where provided, a comparison rate can help illustrate some of the costs of a loan alongside the interest rate.
Application and account fees
Establishment, account, monthly or other lender fees can affect the overall cost.
Loan term
A longer term may reduce the regular repayment but can increase the total interest paid over time.
Extra repayments
Check whether additional repayments are allowed and whether any restrictions or costs apply.
Early payout
If you may repay the loan early, understand what the lender's product rules say about doing so.
Thinking about debt consolidation?
Debt consolidation is one of the most common reasons people consider a personal loan.
The idea is relatively simple: eligible existing debts may be replaced with a new loan so there are fewer separate repayments to manage.
But consolidation only makes sense when the whole arrangement improves the position rather than simply making today's repayment look smaller.
Things worth comparing include:
- The interest rates on the existing debts.
- The rate and fees on the proposed consolidation loan.
- The new repayment amount.
- The new loan term.
- The total amount repayable over that term.
- Whether credit-card facilities will remain open afterwards.
- Whether the consolidation actually creates a manageable budget.
Watch the loan term: reducing the monthly repayment by spreading debt over a much longer period does not automatically mean the new loan costs less overall.
Want to look at consolidation in more detail?
Explore debt consolidationWhat documents might you need?
Requirements vary between lenders and borrowers, but a personal loan application may require information such as:
- Identification.
- Recent payslips or other evidence of income.
- Employment information.
- Bank statements where required.
- Home-loan statements.
- Personal-loan statements.
- Vehicle-finance statements.
- Credit-card information.
- Details of regular household expenses.
- Details or evidence of what the funds will be used for.
- Financial information for self-employed applicants where required.
Providing complete and current information early can help reduce unnecessary back-and-forth during the lender's assessment.
Questions worth asking before choosing a personal loan
- How much do I actually need to borrow?
- What will the regular repayment be?
- Does that repayment fit comfortably into my budget?
- Is the loan secured or unsecured?
- Is the interest rate fixed or variable?
- What fees apply?
- What is the loan term?
- How much may I repay in total over that term?
- Can I make extra repayments?
- Can I pay the loan out early?
- Are there costs or restrictions for doing so?
- Does the lender accept my intended loan purpose?
- Is there another type of finance that may suit the purpose better?
A better question than “Who has the lowest rate?” is often “Which suitable option gives me a repayment, term and total cost that make sense for what I am doing?”
Personal loan FAQs
How much can I borrow with a personal loan?
The amount available depends on the lender, your income, expenses, existing debts, credit profile, loan purpose and whether security is being offered.
Can I get a personal loan for debt consolidation?
Potentially. Eligible debts may be able to be consolidated into a new personal loan subject to lender policy, serviceability and credit assessment.
Can I get a personal loan if I already have a home loan?
Potentially. Your home loan and its required repayments form part of the lender's assessment of your existing financial commitments.
Can self-employed people get personal loans?
Yes, subject to lender criteria and acceptable income evidence. Different lenders may assess self-employed income differently.
Can casual employees get a personal loan?
Potentially. Lender requirements vary and may include minimum employment history or specific forms of income evidence.
Is a secured personal loan cheaper than an unsecured loan?
Secured lending may be priced differently because an acceptable asset supports the loan, but the actual rate and cost depend on the lender, borrower, loan purpose and product.
Can I use a personal loan to buy a car?
Potentially. Vehicle finance may be structured as a secured vehicle loan, an unsecured personal loan or another suitable finance product depending on the circumstances.
Can I use a personal loan for renovations?
Potentially. Whether a personal loan is suitable can depend on the renovation cost, available property equity, loan size and whether home lending or another finance option would be more appropriate.
Can I make extra repayments on a personal loan?
This depends on the lender and product. Some loans allow additional repayments while others may have conditions or costs that should be checked before applying.
How long does a personal loan take to approve?
Timing varies by lender and application. The complexity of the application, quality of the information provided and whether the lender needs additional documents can all affect assessment time.
Does applying for a personal loan involve a credit check?
Lenders generally assess an applicant's credit position as part of a formal personal loan application. The exact process depends on the lender and application.
Should I choose the personal loan with the lowest advertised rate?
Not automatically. The rate is important, but fees, repayment amount, loan term, lending criteria, flexibility and total cost should also be considered.
Have a personal loan question about your own circumstances?
Talk to a brokerThe bottom line
A personal loan can be useful when you need to fund a larger expense and want a clear repayment structure rather than trying to absorb the entire cost at once.
But the right personal loan is not simply whichever product appears first or advertises the lowest rate.
The loan amount, repayment, term, fees, interest rate, security, flexibility and total cost all need to make sense together.
Final thought: start with what you need the money for, then find the finance that fits the job — rather than trying to make the job fit whatever loan happens to be in front of you.
Tell us what you're planning
You do not need to know which lender, loan type or structure you need before speaking with us.
Tell Loan Location what you are trying to finance, and we can look at your position, compare suitable options and explain the differences in plain English before you decide how you want to proceed.
Note: This is general information only and does not take into account your personal objectives, financial situation or needs. Lending criteria, rates, fees and product availability can change. Approval is subject to lender assessment. Consider the applicable terms, fees and conditions before proceeding.