Low Income Personal Loan

If you’ve found your loan prospects from banks have been looking pretty slim due to your low income, don’t be discouraged - there’s more than one lending option for a low income personal loan around.

How to get a low income personal loan?

Having a low income isn’t a death sentence for your personal loan eligibility. At Ozzie Loans, we look for consistency and long-term positive credit behaviours when we individually assess each application for one of our loans. 

To be eligible for our personal loans, you’ll need to be an Australian citizen or resident for tax purposes and 18+ years old. Most importantly, you’ll need to be able to demonstrate a steady source of income into a single bank account.

When you apply online with us, we’ll first ask you about how much you’d like to borrow and over what time period. Next, you’ll need to tell us about your income and employment and give us a breakdown of your daily expenses and living costs such as rent, utility bills, groceries, subscriptions, insurance etc. 

We’ll assess your income versus expenses and make a decision as to whether we feel you can comfortably make the repayments on your requested loan amount and terms while covering your living expenses - including accounting for any contingencies. 

This information, combined with your credit history, will determine how much money you can borrow, over what period, and at what interest rate.

Ozzie Loans offers approved applicants a fixed rate, unsecured personal loans between $5,000 to $50,000 over loan periods of 1 to 5 years. If you’re seeking a low income personal loan, you’re most likely to be approved for a small loan, e.g. up to $5,000 or a short term loan (1 to 2 years). 

If you’re on a low income, there are things you can do to improve the likelihood of being approved for one of our personal loans, such as: 

• Ensure all income is going into one account so it’s easily traceable. Every dollar counts! 
• Increase your income to expense ratio by cutting down on expenses where you can. In fact, this is something we recommend to all our customers - not just those on a low income. It’s amazing where you can find savings, such as by lowering bills by simply changing your mobile or internet plan.  
• Curtail any risky spending habits, like gambling. 

Applying for a low income personal loan with Ozzie Loans is easy. Our application process is 100% online - no paperwork, no phone calls, no fuss. It only takes a few minutes to complete, and you could have the cash in your bank account the very same day.

What is the interest rate of a low income personal loan?

When choosing a low income personal loan, it’s a good idea to consider personal loan interest rates between different money lenders before you apply. It’s likely that you’ll find online loans, such as those offered through Ozzie Loans, are more affordable. 

When you’re looking at various loan products, it’s helpful to know that the comparison rate reflects the true cost of your loan, so it’s the best piece of information to use when comparing personal loans australia. As opposed to the interest rate, a comparison rate incorporates the interest rate and all establishment and monthly fees and charges, which is why it looks so much higher than the interest rate alone. 

Ozzie Loans believes in responsible lending, so you’ll know exactly what fees and charges are applied to our cash loans before you sign. You can use the free online personal loan calculator on our website to get an idea of what repayments might look like on a variety of quick loans over different lending periods. 

Our personal loan interest rates start at just 7.95%—some of the lowest in Australia. But our maximum rates are still extremely competitive with those of the big banks, so you can feel confident that even if your credit has taken a few hits and you’re not offered our lowest interest rate, you’re getting the best rate for your current financial circumstances.

Can I get a low income personal loan with bad credit?

Getting a low income personal loan with bad credit can be difficult, but it’s not impossible. To increase your chances of success, it’s important to be smart about what you apply for. 

This means having a clear picture of your financial health before you begin your application. Because we’ll always carry out a credit check as part of the application process, it’s important you’re aware of and honest about all your financial liabilities, or debts - such as credit cards, buy now pay later debt, or personal loans; as well as any defaults on your credit file (where you’ve missed repayments) and how they sit in the greater context of your credit history.  You can do this by requesting a free copy of your credit file from Equifax (limited to one free copy per year).

Ozzie Loans assesses each loan application individually, so you won’t automatically be declined for having a default on your record. However, there are some circumstances that will cause your credit application to be declined, such as if you’re bankrupt, in a debt arrangement, or if you have a consistent pattern of defaults. 

We want to make sure that none of our customers experiences financial duress because of their loan repayments, so we take care in our assessments to ensure that loan offers are only approved for customers who are in a comfortable position to repay their debt. These considerations extend to the loan terms offered with your low income personal loan, such as the amount we approve you to borrow and over how long.

If your credit isn’t crash hot, consider only applying for a short term loan or a small loan. By demonstrating that you can make the repayments over time, you’ll rebuild your credit history and be eligible for higher credit limits and lower interest rates.

Which bank is best for a low income personal loan?

Many of the major banks have a blanket minimum income threshold required to be met before a customer can apply for any of their credit products. 

Other lenders, such as Ozzie Loans, recognise that everyone’s situation is different. We offer a range of personal loans to suit almost all financial circumstances, including cash loans for low income personal loan purposes. 

Ozzie Loans operates 100% online. Because we’re a fully mobile lender, you can apply for your low income personal loan from anywhere in Australia, at any time.  

Applications for our online loans only take a few minutes, and you’ll know the outcome in the same. Depending on who you bank with, if you’re approved during business hours, you’ll have access to your cash the same day you apply.