Whether you’re looking to unlock the road ahead with a new car, finally tick off that dream holiday, renovate your home or kick your debt to the curb, applying for a personal loan can help bring those plans a little closer.
Once you’ve decided a personal loan could be the right option, the next question is usually: “What do I need before I apply?”
Knowing what to expect when you go apply for a loan can help make the process that much smoother.Â
We are here to navigate you through the personal loans application process, with this quick checklist that runs you through what you’ll need, in order to open the personal loan door.
Identification
Most importantly, lenders need to confirm that you are who you say you are.Â
Most lenders will ask you to provide identification such as a current Australian driver’s licence or an Australian passport
Don’t have either? Depending on the lender’s requirements, alternative forms of identification may also be accepted.
Having these details ready before you start can help keep your application moving.
Proof of income
Next, your lender will want to understand is your income and your ability to comfortably manage loan repayments. Depending on your circumstances, you may be asked to provide:Â
- Recent payslips
- Bank statements showing your income
- Tax returns
- Payment summaries
- BAS statements if you’re self-employed
If you’re casually employed, many lenders will also look for evidence of consistent employment. At Rapid Loans, casual employees generally need to have been with the same employer for at least three months.
If you receive Centrelink payments, you may also be asked to provide a Centrelink Income Statement. However, Centrelink cannot be the sole source of income for a Rapid Loans application.
Employment information
You’ll also be asked to provide some basic information about your employment.
This may include:
- Your employer’s name
- Your role or occupation
- How long you’ve worked there
- Whether you’re employed full-time, part-time, casually or are self-employed
This information helps lenders verify your income and build a clearer picture of your financial situation.
Bank Statements
Your bank statements are one of the most important parts of your application.
They help lenders verify the information you’ve provided, understand your regular financial commitments and assess whether the proposed loan is suitable for your circumstances.
Many lenders request around 90 days of recent bank statements, although this can vary.
At Rapid Loans, if bank statements are required, they can be securely uploaded through our online application process.
Know your budget
Before you apply, it’s worth spending a few minutes working out what you can comfortably afford.
Think about your regular commitments, including:
- Rent or mortgage repayments
- Utilities
- Groceries
- Insurance
- Existing loans
- Credit card repayments
- Other household expenses
Having a clear understanding of your budget can help you choose a loan amount that’s right for your circumstances.
References (if required)
Depending on your circumstances, your lender may also ask for some additional information, such as:
- Personal references
- Your employer’s contact details
- Rental payment history if it can’t be verified through your bank statements
Not every applicant will need these, but it’s helpful to know they may be requested.
Ready to apply
A little preparation goes a long way. Having your documents organised, understanding your budget and knowing what lenders are likely to ask for can help make your personal loan application a smoother experience from start to finish.
Ready to start your personal loan application? Learn more about Rapid Loans fast and easy personal loans.
This article is general information only and does not constitute financial or credit advice. It does not take into account your personal objectives, financial situation or needs. When you apply for a loan with Rapid Loans, your application will be assessed against our credit eligibility criteria. All applications are subject to approval. Terms and conditions, fees and charges apply.