In this blog post we prepared for those who want to apply for a loan in Australia, you can find information about loan types, application requirements, required documents and application process. Australia is one of the most developed and prosperous countries in the world. A variety of loan options are available to meet the financial needs of those wishing to live, work or study in Australia.
What Are the Types of Loans in Australia?
Types of loans in Australia differ according to the purpose of application and repayment terms. In general, the types of loans in Australia are:
- Personal Loan: It is a loan used for purposes such as personal expenses, vacation, education, health or debt consolidation. Personal loans can usually have fixed or variable interest rates and repayment periods can range from 1 to 7 years.
- Car Credit: Credit used to buy a new or used car. Car loans are usually fixed-rate, with a repayment period of 1 to 5 years. In car loans, the purchased car is usually shown as collateral.
- Housing Loan: It is the loan used to buy a house or land or to renovate an existing house. Housing loans can usually be variable or fixed rate and the repayment period can range from 10 to 30 years. In housing loans, the purchased or renewed real estate is usually shown as collateral.
- Business Loan: It is the loan used to establish, develop or expand a business. Business loans can usually be variable or fixed-rate, and the repayment period can range from 1 to 15 years. In business loans, the assets of the business or personal guarantors are often shown as collateral.
To apply for a loan in Australia, you must first determine which type of loan you need. Next, you need to choose a bank or financial institution that suits you and learn the application requirements and required documents.
The following documents are generally required to apply for a loan in Australia:
- Passport or ID card
- Document showing visa status
- Document showing the income status (payslip, tax return, bank statement, etc.)
- Document showing other sources of income, if any (rental income, investment income, etc.)
- Document showing your assets and debts (house, car, credit card, etc.)