Easy Apply Personal Loans
Fast Turnaround Time with Friendly Finance
Secured or Unsecured
Whether or not you have collateral to put up against the loan, it’s okay. Friendly Finance provides both secured and unsecured loan options.
Quick Approval Rates
In need of immediate cash assistance? Our fast and convenient application process have helped thousands of Australians get their money quickly.
Online Application
Let’s say goodbye to filling in forms manually. Applying through Friendly Finance is 100% online and can be done on your mobile device or desktop at home.
Am I eligible for a personal loan?
Loan applicants must meet our minimum requirements to be eligible for a personal loan through Friendly Finance:
- 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.
What are the associated fees and charges for a personal loan?
Personal loans usually have the following fees and charges:
- 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.
- Default/Dishonour fee: This is incurred when there are not enough available funds in your account to cover a direct debit.
- 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 a fixed interest loan
- Break fee: This is incurred if breaking a fixed-rate loan and changing it to a variable-rate loan.
Make sure to read the fine print before signing off on your loan. It is important that you fully understand the loan terms and specific fees and charges included in your loan contract.
Do I need to disclose where I will use my personal loan?
In most cases, you will need to disclose the purpose of the loan. The good thing is personal loans can be used for different purposes. However, there are instances wherein education-related expenses is not accepted.
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
- Vacation
- Debt consolidation
What types of personal loans can I apply for?
Unsecured Personal Loans
The unsecured loan is not backed by collateral; making it the most common type of personal loan taken by individuals.
Loan approval and interest rates 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.
Guarantor loan
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.
Secured Personal Loans
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 loan. 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.
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.
Frequently Asked Questions
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.
My credit score is low. Will I still qualify for a personal loan?
In some cases, you might still qualify. You can either choose to apply and wait for the feedback, or you can opt for our no credit check loans.
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, or Medicare card.
- Proof of income. Payslips or an ATO notice.
- If you are self-employed, have recent tax information or business activity statements.
When applying, you will need to fill out the information on your daily expenditures. This could include living expenses, travel expenses, debts and other expenses. It’s wise to have some paperwork prepared for these if 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.
What types of loans can I take through Friendly Finance?
At Friendly Finance, our team works hard and fast to find the best financial solution for your needs. You can apply for any of the following loans:
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