How to Apply for a Loan

The loan application process can seem quite overwhelming, and you certainly don’t want to risk it when it comes to money, especially not when it could mean your loan application getting rejected altogether. This is why this article is here to inform you on how to apply for a loan. What about if you’re 18? Learn if you can get a loan under 18 here.

How to Apply for a Loan in 3 Steps

Down below is a guide to the 3 steps that illustrate how to get approved loans.

1. Fill Out an Online Application

what do i need to apply for a personal loan

Drawing from our experience, Loan applications couldn’t be any easier thanks to online forms that you can fill out from the comfort of your couch. However, you can still apply in person or on the phone if you wish to. Can you get multiple payday loan at once? Learn more about multiple payday loans here.

If you want to try “rate shopping,” which means applying with several lenders to compare offers, do so in 14 to 30 days. That way, the many inquiries made into your account will be considered as one, and your credit score won’t be affected too much. Learn to pay your loan off faster here.

In the application, you get to specify the kind of loan application process you want (interest-only, amortizing loan, or another type), how much you’d like to borrow, to cover what expenses exactly (mortgage, car, or something else), your expected loan term, and also the frequency by which you’d like to make your repayments, whether that’s every week, fortnight, or month. We define loan here.

Tip: Use an online calculator to determine the amount of money you can borrow with an interest rate you can cover in the future. Learn how to choose a suitable loan here.

Moreover, the online application is a chance for you to introduce your financial situation. You can do that by presenting payslips, identification documents, bank statements from the past 90 days at least, and other required documents that testify for your financial status. Here’s the necessary information you need to provide:

  • ID (for customers)
  • Driver’s license number (if present)
  • Personal details
  • Employment details over the past three years
  • Salary (with and without taxes) and whether it’s weekly, monthly, etc.
  • If you’re on Centrelink support, proof that no less than 50% of your income comes from other sources
  • Any extra income that you receive
  • Monthly living expenses, such as rent and insurance
  • Assets, including cars and homes
  • Liabilities, whether that’s personal loans, home loans, credit cards, or otherwise

Tip: Your income should be able to support the amount of money you want to borrow. Otherwise, your application will get rejected.

2. Accept Your Loan Offer

how to get approved for a personal loan

After your information is verified, PerfectPayDay reviews your application in mere minutes and lets you know if it was approved. If so, you’ll be connected with interested lenders and receive an offer. It’s vital to note that you can still accept or reject your offer at this point.

Our team discovered through using this product that, the offer will denote the interest rate, borrowing limit, and repayments (learn how to work out loan repayments here), based on the information you’ve provided in your application. It’ll also include details about the loan’s interest type (fixed or variable), automatic withdrawal policy, arbitration, prepayment penalty, if the loan is secured or unsecured, if it has fees and penalties, and their value. Learn what is the difference between secured and unsecured loans here.

3. Receive Your Loan

After you accept your offer, your loan will be transferred to your account. And the best part is that if your application was accepted before 3 PM on a business day, you could receive your loan on the same day. If you want the money as fast as possible, applying for loans in business hours and providing all necessary information can help speed up the process.

What Do I Need to Apply for a Personal Loan?

Perhaps before you can even set out to apply for a loan, you should have some insight about how to get it approved or what the criteria of assessment are.

Am I Eligible?

There are several boxes that you need to check. To be eligible for a loan, you must:

  • Be 18 years old or older
  • Hold Australian citizenship, a permanent residency, or an eligible visa or a New Zealand citizenship
  • Live in Australia
  • Have a regular source of income that isn’t under the minimum income requirements
  • Have a good credit score (more on that later)
  • Not be approaching bankruptcy

Will I Pass the Credit Check?

how to get approved for a loan

Suppose you’re unsure about your credit score. In that case, you can request credit reports from big credit reporting agencies like Equifax, Experian, and TransUnion (this sort of soft inquiry won’t impact your credit score). Besides, provides you with a free credit report from these agencies once a year.

However, essentially, to pass the credit check, we need to take a closer look at three primary keys: account history, credit rating, and saving record. Find out how long to repay loan here.

1. Account History

Our findings show that, if you’re wondering what a good account history might look like, it’s essentially one where you receive your salary, withdraw money to pay for bills, such as rent, and still save money. It’s also one that you don’t overdraw, indicating that you don’t spend money you don’t have and thus testifies for your ability to manage finances.

2. Credit Rating

This one’s pretty simple; you maintain a good credit rating by paying bills, including phone and electricity bills, making payments, arrears, among other debts on time.

3. Saving Record

A good saving record is achieved through saving money on a weekly or monthly basis, and it reaffirms that you’re capable of putting money aside to cover your loan repayments. Find an answer to “can I get a loan with a paid default” here.


Hopefully, you now understand what information you need to provide about the loan you’re looking to take out and how to apply for a loan, to begin with. To recap, the bank will need your employment and personal details, expenses, assets, liabilities, and the documents to prove them. What happens when defaulting credit card loan? Learn more about loan defaults here.

Then, when you receive your offer, you can compare it with other offers, look at interest rates, repayments, and more; thus, you can estimate if the loan is right for you and consequently either accept or reject it. Learn what are payday loans here.

Also, before you apply, make sure you check all the eligibility boxes and request credit reports to ensure that your account history, credit rating, and saving record pass the mark. If you consider all of that, you’ll not only know how to apply for a loan but also increase your chances of getting it approved. Learn how does interest work on a loan here.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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