Personal Loans

Flexible loans for you

Personal Loans

With everyone having different aspirations and goals, whether they involve getting a new car, taking a well-deserved holiday, planning the ideal wedding, remodeling their home, or simply having financial security.

Personal loans with their flexibility and potential can help you realise your goals more quickly and easily; they may also be the ideal option for your financial need. Below we are giving you as much information as we can on personal loans. If you are on the web, it becomes confusing as everyone is quoting rates but gives little information about eligibility in applying for a personal loan. If you read this article in full, you will be well informed even before you make one phone call.


When applying for a personal loan, the lender typically requires certain information to assess your eligibility and determine the loan terms. This information usually includes your personal details (name, address, contact information), employment details (income, employer’s name and contact information), identification documents (such as a driver’s license or passport), and financial information (bank statements, proof of assets, and liabilities). The specific requirements may vary between lenders, so it’s best to check with the lender directly for their specific documentation requirements.

Credit Scores

The minimum credit score required to qualify for a personal loan can vary between lenders. Generally, a higher credit score indicates a lower risk for the lender, making it easier to secure a loan with favorable terms. A credit score of 730 or above is generally considered good and may increase your chances of approval for a personal loan. Scores under 550 are considered low, adding risk to the lender. There are three main credit reporting bodies in Australia: Equifax, illion and Experian. Anyone of these is able to assist you with finding your score.

Defaults / Non payments

If your credit file has defaults listed, it may impact your ability to secure a personal loan. Defaults are negative marks on your credit history that occur when you fail to make payments on time. Lenders typically view defaults as a sign of financial instability and may be hesitant to approve a loan. However, some lenders specialize in providing loans to individuals with bad credit or defaults, however they will ask that you pay the default in full prior to approving your loan, they may charge higher interest rates or require additional collateral if you have a low credit score.

The interest rate

Depending on several variables, interest rates on personal loans in Australia can vary substantially. Including the lender, loan amount, loan term, and creditworthiness of the borrower. Borrowers with past defaults or late payments may be priced at the top end of the lenders rate scale. While those with a high credit score and good credit and repayment history may be offered a lower rate.

However, it’s important to note that interest rates are subject to change and can vary between lenders, so it’s best to check with the lender directly for the most up-to-date information.

Secured vs unsecured

A secured loan is a type of loan that is backed by collateral, such as a car or property. If the borrower defaults on the loan, the lender has the right to seize the collateral to recover their losses. On the other hand, an unsecured loan does not require collateral and is based solely on the borrower’s credit worthiness. Unsecured loans typically have higher interest rates compared to secured loans, as they pose a higher risk to the lender.

Turning a unsecured loan to a secured loan

If you have an existing unsecured loan and wish to turn it into a secured loan, you will need to provide collateral to secure the loan. The collateral could be an asset of value, such as a car or property, that meets the lender’s requirements. By providing collateral, you reduce the risk for the lender, which may result in a lower interest rate compared to an unsecured loan.

Income verification

Pay Slips

  • Two most recent pay slips that are less than 60 days old.
  • These pay slips must be consecutive (one immediately following the other).
  • Each pay slip should include; 
    • ‘Year to Date’ income figure
    • Gross/Net income
    • Tax
    • Pay period
    • Your name on the pay slip
    • Your employer’s name

Bank Statements

      • Provide bank statements covering the last 3 months. This is done electronically
      • The statements must clearly display your name as well as your salary/deposits (e.g., your last 12 weekly salary deposits).

Note: Screenshots or bank statements with blacked out information are not acceptable.

Employment Details

If you started new employment within the last 2 months, you’ll need a letter of employment confirming your name, employment status, and detailed income information.

Other verified employment income

  • Second job 100%
  • Contract income 100%
  • Overtime 75%
  • Rental income 80% (gross)
  • Salary sacrifices 100%

Other income that may be accepted

  • Overseas/age pension
  • Pension supplements
  • Veteran Affairs Pension
  • Disability Support Pension

Income not considered

  • Family maintenance
  • Family allowance
  • Newstart allowance
  • Workers’ compensation
  • Carers allowance
  • Maternity/paternity leave
  • Parenting payments


Acceptable Visa Class

100, 101, 102, 103, 114, 115, 116, 117, 119, 120, 121, 124, 132, 143, 151, 155, 157, 176, 186, 187, 188, 189, 190, 200, 201, 203, 204, 482, 491, 494, 801, 802, 804, 835, 836, 837, 838, 857, 858, 864, 866, 887, 888, 890, 891, 892, 893

Loan must be paid out in full 6 months prior to visa expiry

The fine print

  • Minimum Employment Duration:
    • Full time: 3 months
    • Part time: 6 months
    • Casual: 12 months
    • Self-employed: 12 months
  • Citizenship/Residency: AUS/NZ citizen or permanent resident
  • Acceptable License Type: Learner, P1, P2, and full license holders only
  • Repayment History: Minimum 6 months clean repayment history
  • Credit Score: Minimum 500
  • Age of Borrower: 21 years and above
  • Age of Credit File: Minimum 12 months
  • Minimum Annual Income: $35,000
  • Credit History:
    • No bankruptcy or court judgments
    • No unpaid defaults on credit file
    • Good credit repayment history
    • No current arrears on any active credit contract
    • No active debt collection activity
  • Home Ownership and Credit Facilities:
    • Non-homeowner, with no active credit facilities in the last 12 months
    • No active payday loans or any closed payday loans in the last 6 months
  • Living Situation: Boarding or living with parents’ maximum loan amount is $35,000.
  • Credit File Description: Thin credit file


While we make every attempt to give you the best possible tools and information, Berra finance Pty Ltd, its agents, employees and accredited lenders will accept no responsibility for any loss that may arise. The information is for general information purposes only and has been prepared without considering your objectives, financial situation or needs. You should, before acting on the information, consider its appropriateness to your circumstances. Applications are subject to the lenders normal credit approval and suitability of the asset. Fees, charges and conditions apply. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. All loans applications are subject to lenders approval.

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