Personal Loans for Temporary Residents
You can still access personal finance as an Australian temporary resident. Explore your options with Savvy.
- Borrow up to $5,000
- Outcome in 60 seconds
- Flexible repayments
- 100% online
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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
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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.
Apply within your means
You should only ever apply for an amount that you can comfortably afford to repay. If your lender sees a risk of you not being able to fulfil the loan repayments, they’ll either hike up the interest rate on your loan or reject it outright. In most cases, though, your lender will come back with a counter offer of an amount they’re willing to approve you for.
Double check your visa
Before applying for your personal loan, you should always ensure that your visa meets your lender’s eligibility criteria, as there’s little use in entering an application without knowing whether your living situation is acceptable for financing. You'll also need to check how long your visa has left to run, as this will give you an idea of the term length you can be approved for.
Don’t apply too many times
Each time you apply for a personal loan, a mark goes against your credit file. As such, minimising the number of applications you make, preferably down to one, will be the best look for your credit file. It's especially important to not apply for more than one at any given time, as multiple applications in quick succession may put potential lenders off.
Apply with a partner
If you’re living with a partner, taking out a personal loan with them is a great way to increase your approval chances. This is because the level of risk is decreased by including two incomes on a loan compared to one. Doing this can help you lower your interest rate and potentially increase your borrowing power beyond what you can manage on your own.
Common personal loan queries for temporary residents
Helpful personal loan guides
Still looking for the right personal loan?
Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
