How much could I lend? It’s one of the first questions people ask before they start looking at what they want to finance. Knowing your borrowing range before you apply saves time and protects your credit score.
The honest answer is: it depends. Personal loan amounts in Australia typically range from $5,000 up to $75,000 for unsecured loans, with secured loans like car finance often going higher.
At Yes Loans, we work harder to say yes more often. Here’s what goes into the decision, and what you can do to put yourself in the best position.
How Much Can You Actually Borrow with a Personal Loan?
The range varies depending on whether your loan is secured or unsecured, and which lender you go through. Most unsecured personal loans in Australia sit between $5,000 and $75,000, while secured loans can go higher still.
Worth knowing: vehicle purchases make up around 45% of personal loan borrowing in Australia. That means a large portion of applications are already tied to a specific asset, which often influences how lenders structure the deal.
| Loan Type | Typical Borrowing Range | Typical Loan Term |
|---|---|---|
| Unsecured personal loan | $5,000 to $75,000 | 1 to 7 years |
| Secured personal loan (asset-backed) | $10,000 to $100,000+ | 1 to 7 years |
| Car loan (secured) | $10,000 to $150,000+ | 1 to 7 years |
| Debt consolidation loan | $5,000 to $75,000 | 1 to 7 years |
These are general market ranges. The amount any individual lender will approve is based on your financial profile, not just the product limits.
What Do Lenders Look at When Deciding How Much You Can Borrow?
Lenders don’t just look at your income in isolation. They assess the full picture of what you earn, what you owe, and how you’ve handled credit in the past. Here are the four main factors they consider.
Income and Employment
Your gross income is the starting point. Lenders want to see that you can comfortably service repayments alongside your existing expenses.
Employment type matters too. Full-time PAYG income is generally easier to verify than self-employed or contract income, though that doesn’t mean non-traditional employment is a barrier. It just means matching your application to the right lender matters more.
Existing Debts and Expenses
Here’s something a lot of applicants overlook. Lenders count your existing debt commitments against your available income, including credit card limits (not just balances).
Even an unused credit card limit can reduce how much a lender is willing to extend to you. If you’re looking to tidy up multiple debts before applying, our debt consolidation loan option might be worth exploring first.
Credit Score
Your credit score reflects your history of repaying debt on time. A stronger score generally means access to more competitive rates and higher borrowing amounts.
A lower score doesn’t automatically rule you out, though it may affect the rate you’re offered. Different lenders have different credit appetites, and a broker can match your profile to the lender most likely to say yes.
Loan Purpose and Security
What you’re borrowing for, and whether you’re offering an asset as security, affects both the amount you can borrow and the rate. ASIC’s MoneySmart notes that secured loans often carry lower interest rates because the lender can recover the asset if repayments aren’t met.
Unsecured loans carry more risk for the lender, which can mean tighter borrowing limits and higher rates.
How Does Secured vs Unsecured Affect Your Borrowing Limit?
With an unsecured personal loan, there’s no asset backing the debt. That makes it more flexible in terms of what you can use the money for, but lenders compensate for that risk through tighter criteria and, often, higher rates.
A secured loan works differently. If you’re borrowing to buy a car, the vehicle itself acts as security, which is one reason car loans often allow for higher borrowing limits.
The rate difference on a secured loan still adds up. On a $50,000 car loan over 5 years at 7.49%, repayments sit around $994 per month. At 9.99%, that climbs to about $1,062, which is roughly $68 a month or over $4,000 across the life of the loan.
What Can You Do to Increase Your Borrowing Capacity?
A few practical steps can meaningfully improve the amount a lender is willing to offer.
- Reduce unused credit limits. Lenders count the full limit, not just what you owe. Dropping a $10,000 credit card limit you never use costs you nothing but can free up a notable amount of borrowing capacity.
- Pay down existing debt. Less monthly commitment means more room in your debt-to-income ratio. Even clearing a modest debt before applying can shift the numbers in your favour.
- Don’t apply with multiple lenders at once. Every credit application can leave a mark on your file. Instead, speak to a broker first. We can assess your options across our panel without triggering multiple enquiries.
- Check your credit file for errors. Mistakes do happen. You can access your credit report through agencies like Equifax, Experian, or illion. If there’s an error, getting it corrected before you apply is worth the effort.
- Be consistent with your financial history. Regular income, steady employment, and a pattern of on-time repayments all work in your favour over time.
Our loan calculator is a handy starting point for working out what a given loan amount and rate would mean for your monthly repayments.
Frequently Asked Questions
Does checking how much I could borrow affect my credit score?
Getting an estimate through a broker doesn’t trigger a formal credit enquiry, so your score isn’t affected. It’s only when a lender runs a formal assessment that a hard enquiry appears on your file. Chat to our team first and we can give you a realistic picture with no impact on your credit file.
Can I still borrow if my credit history isn’t perfect?
Yes, in many cases. A bank might decline an application that a specialist lender on our panel would approve, simply because their credit appetite is different. If you’ve been knocked back elsewhere, it’s worth having a conversation. See our FAQs page for more on the application process.
How quickly can I find out how much I could borrow?
Faster than most people expect. Reach out to our team online or by phone, walk us through your situation, and we can give you a solid indication without you filing a formal application. Pre-approval is the next step from there and puts you in a stronger position when you’re ready to commit.
What’s the minimum amount I can borrow through Yes Loans?
Yes Loans generally works with personal loans from $5,000 upward. For amounts under $5,000, our referral partner MoneyBuddy may be able to help.
Key Takeaways
- Unsecured personal loans in Australia typically range from $5,000 to $75,000. Secured loans, including car finance, can go higher.
- Lenders assess income, existing debts, credit history, and loan purpose when determining how much you can borrow.
- Reducing unused credit limits and paying down existing debt before applying can improve your borrowing capacity.
- Secured loans generally allow for higher borrowing amounts and often come with more competitive rates.
- A broker can assess your profile across multiple lenders, which means a better shot at approval and a better rate.
- Not sure where to start? Use our loan calculator to run some numbers, or call our team on (08) 9472 3000 to talk through your options. You can also apply online and we’ll take it from there.
Yes Loans (ACL 392426) is a finance broker, not a direct lender. All applications are subject to lender credit assessment criteria.
