Personal Loans
Australia Guide

When you’re searching for the best, easiest personal loans Australia has to offer, you need to look no further than Friendly Finance. Our core focus is consumer finance, and we’re committed to providing the best financial solutions that meet you where you are.

Whichever type of personal loans would suit you best, we can help you. Here at Friendly Finance, we look at your individual needs to be sure we match you with the right loans for your situation. When it comes down to it, we’re here to make your life easier.

What Are Personal Loans?

When you apply for a personal loan, most of the time you’re getting an unsecured personal loan. Personal loans mean you’re borrowing an amount of money from a bank or financial lender to meet your personal needs. Unsecured means that you, the borrower, don’t need collateral (such as property) to secure the personal loan.

Personal loans are not the same as a car loan or a home loan. In most cases, these types of loans require an asset to be put up as collateral in case you default on the loan. Personal loans can be secured, but it’s more common to find unsecured personal loans.

Personal loans offer more flexibility in how you can use them. You’ll pay a personal loan back in fixed monthly instalments over a period of 2 or 7 years.

These loans are given on the basis of key criteria, such as:

Income level.
Credit score.
Employment history.
Repayment capacity.

What Can I Use a Personal Loan For?

You have a lot of leeway with most lenders on how you can use your personal funds. It would be wise to check with the lender beforehand, though, as there may be restrictions on how you can use the money. For instance, some may prohibit education-related expenses.

Generally, you can use your personal loan for any the following:

Home repairs and renovations.
Wedding expenses.
Medical costs.
Divorce costs.
Moving expenses.
Small business expenses.
Holiday shopping.
Debt consolidation.

What Types of Personal Loans Are There?

Secured Personal Loans Australia

Secured loans are backed by collateral, which means you give permission for the lender to take a particular asset as payment should you default on your repayments. Home loans and car loans are examples of secured loans – if you can’t pay your monthly fee, your home or car can be seized. Interest rates are typically lower, as it’s considered to be less risky for lenders.

If you apply for an unsecured loan using your car as collateral, the application could take a little longer to process. You’ll need to provide specific details, including the value of the car. Most applications will also require that the car be less than 5 years old – the value of the car needs to be at least equal to that of the loan.

Unsecured Personal Loans Australia

This is the most common type of loan taken by individuals. The unsecured loan is not backed by collateral, which is why lenders may charge heightened yearly percentage rates, as this type of loan is riskier for the lenders.

Loan approval and interest rate are mainly based on your repayment capacity and credit scores. The rates range from 5% to 36%, with repayment terms from one to seven years.

Fixed Interest Rate

If you’re worried about rising interest rates on long-term loans, then going for a fixed-rate loan would make sense. Monthly repayments remain the same for the length of the loan, so it would be easier to budget for the duration of your loan as you can count on the figure staying the same.

Variable Interest Rate

Variable-rate loans are linked to the benchmark rate set by the banks. Benchmark rates are also known as reference rates. These are regularly updated interest rates that are publicly accessible. They’re a useful basis for all kinds of financial contracts, such as bank overdrafts, home loans, and more complex financial transactions.

Depending on the fluctuations of the benchmark, the interest rate on your loan, monthly payments, and the total interest cost will rise or fall on a monthly basis.

There is a benefit to variable-loan rates, though, and that is that they usually have lower APRs than the fixed-rate equivalent. Sometimes there may also be a cap on the limits of how much the rate can change over a specific period or over the length of the loan.

Co – Sign Loans

This loan is for individuals who have little or no credit histories, and who wouldn’t necessarily qualify for a loan by themselves. When someone co-signs the loan, the third-party is promising to repay the loan if the borrower defaults. This acts as a form of insurance for lenders.

By adding a co-signer who has an impressive and strong credit track record, your chances of qualifying improve, as well as the chance of getting a lower and more favorable loan term.

What Types of Loans Can I Take Through Friendly Finance?

At Friendly Finance, our team works hard and fast to find the best financial solutions for your needs. You can apply for any of the following loans:

Short-term loans.
Personal loans Australia (low-interest).
Personal loans Australia (small).
Payday Advance loans.
Instant Cash loans.
Secured loans.
Unsecured Personal Loans Australia.
Fixed-rate loans.

How Do I Apply For a Personal Loan?

At Friendly Finance, we’ve taken the fuss out applying for a loan. Everything is done online and can be finished within minutes. All you have to do is choose your loan amount and complete the application form. We’ll do the rest for you.

To qualify for personal loans through Friendly Finance, you should meet our minimum requirements, which are as follows:

At least 18 years old.
An Australian citizen or permanent resident.
A regular income (into a personal account, for the last 3 months).
An internet banking account.
If you’re receiving Centrelink payments, it shouldn’t be a problem to get a loan if you find yourself needing a supplementary advance payment. A lot of the time, Centrelink benefits are considered as an alternative form of income, but the amount needs to make up less than 50% of your total income in order for you to be eligible to apply for a loan.

Just because you may be receiving payments from Centrelink, it doesn’t mean you may not need a bit extra to see you through to that next payment.

We’re here to extend a helping hand.


When it comes to applying for a personal loan, we want to make sure that you have all the information you require. We’ve put together a list of the Frequently Asked Questions to cover some of the most common questions.

What documents would I need to apply?

The most common documentation you would need to provide is:

Proof of identity. This could be in the form of a driver’s license, passport, Medicare card.
Proof of income. Payslips or an ATO notice.
If you are self-employed, recent tax information or business activity statements.
You will need to fill out information on your daily expenditures when applying. This could include living expenses, travel expenses, debts and other expenses. It’s wise to have some form of paperwork prepared for these in case it’s required.

Can I repay the loan early?

Yes, you can repay your loan early. There would be an “Early Repayment Adjustment fee” if your loan has a fixed rate of interest. The best thing to do is to inquire about this option before signing up for the loan.

Fees and charges?

It’s important to understand the number of potential fees and charges that can come with personal loans. The MoneySmart website offers more insight here.

All figures should be outlined in a schedule of fees and charges upfront when you’re sent your loan agreement. They would look something like this:

Default/Dishonour fee: This is incurred when there are not enough available funds in your account to cover a direct debit.
Application fee: This is a once-off payment when you set up your loan.
Administration fee: This is a monthly or yearly charge for administering the loan.
Redraw fee: This is only applicable if you’re redrawing funds under certain conditions.
Early Repayment Adjustment fee: This is payable when making an early payment on fixed interest loan.
Break fee: This is incurred if breaking a fixed-rate loan and changing it to a variable-rate loan.


There’s no need to search the country for personal loans Australia. We have all you need right here at Friendly finance, and we’re standing by to help you whenever you need us.

Whether you need a personal loan, a same day loan, or a quick cash loan, we’ve got you covered. Give us a call or drop us an email today so we can get you set up!

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