Low Doc Personal Loans in Australia: A Full Guide
Need financing but don’t have all the traditional paperwork?
Low-doc personal loans in Australia may provide an option for eligible borrowers who lack standard documentation.
In this article, we’ll outline the documents typically required for low-doc loans. We’ll also introduce Credit24 and explain how approved applicants can access personal loans of up to $10,000, with funds transferred within 60 seconds.*
What is a low doc personal loan?
A low-doc personal loan requires less documentation than traditional loans, providing an option for eligible borrowers who may not have standard financial records. Instead of tax returns or payslips, applicants can demonstrate income using alternative documentation like bank statements or business activity statements.
These loans can be useful for self-employed individuals, freelancers, and contractors. However, they may come with stricter lending criteria, such as higher interest rates, lower borrowing limits, or the need for security, depending on the lender’s assessment.
What can I get a low doc personal loan for?
Low doc personal loans can usually be used like any other personal loan, which means any legitimate personal purpose. These include:
Home renovations or repairs
Debt consolidation to simplify multiple payments
Vehicle purchase or repairs
Wedding expenses
Medical or dental procedures
Rental bond or moving costs
Business equipment or inventory
Travel expenses
Education or professional development
Emergency expenses
Who are low doc personal loans suitable for?
Low-doc personal loans may be an option for individuals who lack traditional income documentation. They can be particularly useful for:
Freelancers and contractors with variable income
Small business owners
Gig economy workers
Commission-based sales professionals
Seasonal workers
Recently self-employed individuals with a strong business track record
Professionals with multiple income streams
Before applying for a low doc personal loan, take these steps:
1. Determine if you need a secured or unsecured loan
A secured loan requires you to offer an asset (like your car or property) as collateral, which the lender can claim if you default on repayments. While these loans typically offer lower interest rates and higher borrowing limits, they put your assets at risk. Unsecured loans, though they come with higher interest rates, don't require collateral and might be a safer option if you're not comfortable risking your assets. Consider your financial situation, risk tolerance, and whether you have suitable assets before making this decision.
2. Check your credit score
Your credit score plays a crucial role in loan approval and interest rates, even for low doc loans. Get a free credit report from credit reporting bodies like Equifax, Experian, or illion. If your score needs improvement, take steps like:
Paying bills on time
Reducing credit card balances
Fixing any errors on your credit report
Limiting new credit applications
Maintaining stable banking relationships
Remember, a better credit score can help offset the higher risks lenders associate with low doc loans.
3. Compare market interest rates
Interest rates for low doc loans can vary significantly between lenders. Take time to research multiple lenders, including banks, credit unions, and online lenders, and compare both advertised and comparison rates (which include fees). You can also look for special offers or promotional rates, read customer reviews and experiences, and - most importantly, consider fixed vs variable rate options. Keep in mind low doc loans typically have higher rates than standard loans.
4. Calculate the total cost of your loan
The total cost of a loan includes more than just the interest rate. Consider additional charges such as establishment fees, ongoing service fees, and potential penalties for late or early repayments.
Some lenders may also have hidden fees, so reviewing the loan terms carefully is essential. Using a loan calculator can help estimate your total repayment amount, ensuring the loan is affordable for your situation.
5. Assess the loan amount you need
Borrowing only what you need can help reduce interest costs over time. Consider the exact amount required, whether you can use savings to minimize borrowing, and if adjusting your plans could lower the loan amount.
Assess your repayment capacity and how different loan terms impact your repayments. Taking the time to calculate your precise needs ensures the loan remains manageable and cost-effective.
6. Plan your loan repayments
A well-structured repayment plan helps ensure you can manage your loan effectively. Start by reviewing your income—especially if it varies—and compare it against your existing expenses and debts.
Include loan repayments in your budget and set aside a buffer for unexpected costs. Consider different repayment frequencies that align with your income patterns, and setting up automatic payments can help avoid missed due dates. If you’re self-employed, plan for potential seasonal income fluctuations.
7. Gather available documentation
Low-doc loans require less paperwork than traditional loans, but providing more documentation can strengthen your application. Bank statements from the last 3-6 months are typically required, along with business activity statements if you're self-employed.
Additional documents, such as recent tax returns, proof of identity, and proof of residence (e.g., utility bills or lease agreements), may also be needed. For secured loans, asset documentation is required. Supplying sufficient proof of your financial position can improve your application’s chances of success.
8. Consider alternative lenders
Online lenders and fintech companies often specialise in low-doc loans, offering more flexible criteria and tailored solutions for eligible borrowers. These lenders may use alternative methods to assess creditworthiness, making them a potential option for self-employed individuals or those with non-traditional income.
Their digital platforms can streamline the application process, often providing faster decisions compared to traditional banks. However, interest rates and terms may vary, so it’s important to review loan conditions carefully before applying.
How to apply for a personal loan?
The traditional loan application process typically requires documentation such as bank statements, business activity statements, or tax returns, along with proof of identity and address. Some lenders may also request additional documents, such as a letter from your accountant or business records, depending on their assessment criteria.
With Credit24, the process is quite fast and simple:
Complete our online application in under 10 minutes
Provide your identification, bank details and a three-month bank statement*
Get an instant response on your application
Receive funds quickly upon approval
In compliance with Australian law, we are required to review your recent banking history through a bank statement. You can securely share your last 90 days of transactions via our trusted partner, Illion Bank Statements. Illion is an Australian-owned company providing secure banking verification services to major financial institutions nationwide.
Can I apply for a low doc personal loan being self-employed?
Yes, low-doc personal loans can be a suitable option for self-employed individuals. Traditional lenders often have strict requirements, making it challenging for self-employed borrowers to qualify. Low-doc loans provide an alternative by allowing applicants to verify income through bank statements and other supporting documents.
At Credit24, we consider applications from self-employed borrowers who have been in business for more than one year. Eligibility is assessed based on verified identification, bank statements, and, in some cases, additional documentation may be required.
