A personal loan is money borrowed from a lender for personal use. It is usually repaid over a fixed period through regular repayments.
Personal loans can be used for:
- Debt consolidation
- Home improvements
- Travel or holidays
- Medical expenses
- Wedding costs
- Emergency expenses
- Buying personal items
Main Features of Personal Loans
Loan Amount
Typically from $5,000 to $100,000 depending on the lender and borrower profile.
Loan Term
Usually between 1 and 7 years.
Secured or Unsecured
- Unsecured loan — no asset is used as security.
- Secured loan — backed by an asset such as a car or savings.
Fixed or Variable Interest Rate
Borrowers can choose:
- Fixed interest rate
- Variable interest rate
Repayment Options
- Weekly
- Fortnightly
- Monthly
Early Repayment
Some lenders allow early payout without penalties, while others may charge break fees.
Personal Loans for Self-Employed Borrowers
Self-employed applicants may qualify using:
- Tax returns
- BAS statements
- Bank statements
- Accountant letters
- Low-doc options with selected lenders
Non-bank lenders are often more flexible for:
- New businesses
- Irregular income
- Seasonal income
- Credit history issues
FAQ's
A personal loan can be used for many personal expenses, including:
- Debt consolidation
- Home renovations
- Travel or holidays
- Medical expenses
- Wedding costs
- Emergency expenses
- Purchasing personal items
Most lenders provide flexible loan purposes, provided the funds are used for legal and responsible purposes.
A secured personal loan is backed by an asset such as a car or savings account, which may help borrowers access lower interest rates.
An unsecured personal loan does not require security, making it faster and simpler for many borrowers, although interest rates may be higher depending on the applicant’s credit profile.
Lenders face higher risk from market conditions, presales reliance, and exit strategy execution, so they charge higher rates than residential-style development or construction loans.
Yes. Many lenders offer personal loans for self-employed applicants using alternative income verification documents such as:
- Tax returns
- BAS statements
- Business bank statements
- Accountant letters
- Low-doc applications
Non-bank lenders are often more flexible for self-employed borrowers with irregular or seasonal income.
A fixed interest rate provides stable repayments over the loan term, making budgeting easier.
A variable interest rate may offer greater flexibility and the potential to benefit if interest rates decrease, although repayments can change over time.
The right option depends on your financial goals, cash flow, and preference for repayment certainty or flexibility.
Approval times vary depending on the lender, the documents provided, and the complexity of the application.
Some lenders can provide same-day approval, while others may take several business days. Non-bank lenders often offer faster approval processes and more flexible assessment criteria compared to traditional banks.
