Assess your personal loan options as a temporary resident
Personal loans aren’t just open to citizens and permanent residents. If you’re a temporary resident living in Australia and looking for personal financing, there are still options open to you. It’s important to know that you might have to jump through a few extra hoops in order to qualify, but approval is still fast and simple compared to other types of finance. Find out how to apply for your personal loan today.
Personal loans for temporary residents explained
How can I get a personal loan as a temporary resident?
The application process for getting a personal loan as a temporary resident is much the same as that of any other personal loan. The main difference is that the loan itself is likely to come with more restrictions based around your status as a non-permanent resident. First and foremost, it’s important to compare lenders who are able to work with customers living here on a visa, as not all are able to do so. You can find this out by checking your lender’s criteria or submitting an enquiry with them.
You’ll then have to assess whether your visa type is accepted by your lender. Most working visas are generally accepted by lenders, in particular temporary skilled work, but the following won’t qualify you for a personal loan:
- Working holiday visas
- Exchange and student visas
- Bridging visas
- Most visitor visas
As part of the application process, you’ll also need to ensure that your personal loan is completed at least a few months prior to the end of your visa. Lenders want to minimise the potential risk of the personal loan not being fully repaid by the time you leave Australia, so you’ll be required to choose a loan term starting and ending within your visa window. Because most accepted visas last two to four years, this will inform the loan term you can choose.
Who is eligible to apply for a personal loan?
Aside from the qualifications mentioned above, the eligibility criteria remain essentially the same for temporary residents as it does for any other personal loan applicant (with a few further additions). You’ll be required to tick off the following boxes as part of the qualification process:
- You must be at least 18 years of age
- You must meet your lender’s minimum income requirements (usually around $20,000 p.a.)
- You must be deriving your income consistently and from stable sources
- You must provide proof of employment
- You must have an Australian bank account, in which you can show developed cash savings
Because you’re a temporary resident, it’s important to know that the interest rate that you’re charged on your personal loan will naturally be higher than those of most Australian citizens or permanent residents. This is because lenders view these applications as riskier due to the nature of residency being less secure than that of a citizen or permanent resident. This is also likely to manifest itself in lower borrowing caps, as your profile will need to be exceptional to qualify for the full $50,000 that’s typically available.
How to maximise your chances of personal loan approval as a temporary resident
Assess your credit score
Your credit score will play a contributing role in determining your suitability for a loan. If you’ve only recently commenced your visa with no prior time spent in Australia, there may not be much for lenders to base their assessments on. However, if you have borrowed in the past, paid your bills and consistently repaid credit cards, you can increase your lender’s confidence in you as a borrower.