Personal loans for temporary residents

Compare interest rates and fees for personal loans from lenders that accept applications from temporary residents.

By   |   Updated 22nd July 2021

Comparing temporary resident personal loans for $20,000.00 over 36 months

NAB Variable Rate Personal Loan

On NAB's website

NAB Variable Rate Personal Loan

Interest rate

From 6.99% (personalised)

Comparison rate

From 7.91% (personalised)

Repayment period

3 years

Application fee

$150.00

Monthly repayment

$622.08

Total repayment

$22,394.88

Highlights

  • Get a variable headline rate of 12.69% p.a.* (for new loans only). The interest rate you get may be different depending on your circumstance.
  • 13.56% p.a. variable comparison rate.
  • With redraw facility.
  • 1-7 years flexible loan term.
  • Borrow from $5,000 up to $55,000.

*The variable headline rate is what the majority of personal loan customers will get or lower.

NAB Fixed Rate Personal Loan

On NAB's website

NAB Fixed Rate Personal Loan

Interest rate

From 6.99% (personalised)

Comparison rate

From 7.91% (personalised)

Repayment period

3 years

Application fee

$150.00

Monthly repayment

$622.08

Total repayment

$22,394.88

Highlights

  • Get a fixed headline rate of 12.69% p.a.* (for new loans only). The interest rate you get may be different depending on your circumstance.
  • 13.56% p.a. fixed comparison rate.
  • 1-7 years flexible loan term.
  • Borrow from $5,000 up to $55,000.
  • Flexible weekly, fortnightly or monthly repayments.


*The fixed headline rate is what the majority of personal loan customers will get or lower.

Jacaranda Finance - Personal Loan Good Credit

On Jacaranda Finance's website

Jacaranda Finance - Personal Loan Good Credit

Interest rate

From 10.99% (personalised)

Comparison rate

From 19.26% (personalised)

Repayment period

3 years

Application fee

From $0.00

Monthly repayment

$654.68

Total repayment

$23,568.48

Highlights

  • Free, quick and easy to apply for Personal Loans.
  • Borrow up to $30,000 payable up to 4 years.
  • No early termination fees.
Jacaranda Finance - Personal Loan - Credit Builder

On Jacaranda Finance's website

Jacaranda Finance - Personal Loan - Credit Builder

Interest rate

From 21.24% (personalised)

Comparison rate

From 28.40% (personalised)

Repayment period

3 years

Application fee

From $0.00

Monthly repayment

$755.97

Total repayment

$27,214.92

Highlights

  • Free, quick and easy to apply for Personal Loans.
  • Borrow up to $30,000 payable up to 4 years.
  • No early termination fees.
Jacaranda Finance - Personal Loan - Credit Builder Plus

On Jacaranda Finance's website

Jacaranda Finance - Personal Loan - Credit Builder Plus

Interest rate

From 14.99% (personalised)

Comparison rate

From 23.47% (personalised)

Repayment period

3 years

Application fee

From $0.00

Monthly repayment

$693.21

Total repayment

$24,955.56

Highlights

  • Free, quick and easy to apply for Personal Loans.
  • Borrow up to $30,000 payable up to 4 years.
  • No early termination fees.

Overview

Living or studying in a foreign country can get expensive. A personal loan can help you with the costs, but finding an institution willing to lend money to temporary residents or non-residents can be a struggle.

The good news is that even if you are not a permanent resident or Australian citizen, there are lenders who will consider your application. It just might require a little more paperwork and patience. Here’s how it works.

Special considerations

When you are a temporary resident, the main struggle is finding a bank that lends to temporary residents. Most banks and non-bank lenders only process and approve applications made by Australian citizens and permanent residents.

Those banks that do accept temporary residents typically charge a higher interest rate on temporary resident personal loans because of the perceived risk profile.

Temporary residents can get loan terms between one and seven years, but most lenders will consider the length of your visa before approving a term.

Your residence status may also affect the amount you can borrow. Just like citizens and permanent residents, temporary residents have to meet eligibility criteria that typically includes proof of stable employment and income, having a valid visa, and being able to pay their debt in full before the visa expires.

Who can apply?

Temporary resident and non-resident personal loans are offered by traditional banks, credit unions, digital lenders, and other lending institutions. Most temporary resident visa holders can apply for a personal loan if they meet eligibility criteria:

  • Minimum age requirements. These are often the same as the age requirements for permanent residents and Australian citizens. Typically you’ll need to be at least 18 years of age, but some banks require borrowers to be at least 21 years of age.
  • Minimum income. Most lenders will only approve applications from employed temporary migrants. The only exception is made for international students applying for a student loan with an Australian bank or credit union.
  • Credit score. Although Australian lenders will not be able to check your credit history in another country, they may still check if you have any credit history in Australia. Contrary to what you may think, a temporary resident can establish a credit history, for example, because of an arranged overdraft with an Australian bank account or with a credit card.
  • The holding of an Australian bank account. Most lenders will only approve a temporary resident application if they have an Australian bank account.
  • The type of visa. Those who have long-term working visas are more likely to be approved for a personal loan despite their temporary resident status.

How to apply

Applying for a personal loan is generally easy. Most lenders accept and process applications online. You will still have to provide some documents, such as:

  • Proof of address. Utility bills in your name, bank statements, rental agreement, etc.
  • Proof of income. Recent payslips from your employer or bank statements.
  • Valid visa.
  • Australian bank account.
  • Proof of cash savings.

Pros & cons

Pros

  • Quick access to funds. Most Australian lenders approve applications within hours. It’s not uncommon for funds to be transferred into your bank account on the same day as approval.
  • The possibility of building your credit score. If you’re considering applying to become a permanent resident, a personal loan for temporary residents can give you the chance to build a credit history.
  • Repayment flexibility. Most lenders allow you to choose between weekly, fortnightly, and monthly repayments.
  • No early payment and exit fees. Many lenders allow borrowers to pay off the loan early without charging early payment or exit fees.
  • Redraw facilities. Some lenders offer redraw facilities for their loans, which means that you’ll be able to borrow money again after you’ve made the payments. Typically available on variable rate loans only.

Cons

  • Fewer options. Not every bank accepts applications from temporary residents, reducing your choice.
  • Higher interest rates. Lenders in Australia are moving towards risk-based pricing, which means they use your credit score to calculate interest rates. Unless you’ve managed to establish a good credit score, it’s quite likely you will be considered a higher risk and be offered a higher interest rate than a permanent resident or citizen with the same score. Note that Australian banks can’t access credit scores in foreign countries.
  • Higher minimum eligibility criteria. Lenders often ask temporary residents to provide more documents, including visa details and details about their profession. Your personal loan term must also end before the expiry of your visa.