Looking for a personal loan but currently under a Part IX debt agreement? While there are plenty of restrictions that are placed on you during your agreement, it’s important to know that there may still be avenues open to you when it comes to borrowing the money you need.
How can I get a personal loan with a Part 9 debt agreement?
There are plenty of lenders in Australia who specialise in personal loans for people with bad credit, including some who can approve applications for those who are repaying a debt agreement.
These come with more restrictions on loan amounts (no more than $15,000) and length (up to three years), as well as other conditions such as displaying a good repayment history for at least one to two years prior. Also, you’ll pay more in interest and fees than you would if you had good credit.
However, you’re likely to find that you’ll have more luck applying for financing once you’ve been discharged. Without the restrictions of your agreement’s monthly commitments, more lenders will be willing to approve loan to you, particularly if you were able to make your payments without any real trouble.
Savvy is partnered with lenders who can work with individuals who’ve struggled with their credit in the past, including those under a debt agreement. When you apply with us, a member of our team will walk you through the options available and any requirements you’ll have to meet.
How can I work out my affordability?
Determining what you can afford to borrow is a large part of the personal loan process, as your lender will always want to make sure you’re able to comfortably repay the amount you’re asking for. You can work out your disposable (available) income by subtracting your regular expenses, such as rent, utilities and food, from your monthly income.
Lenders want to see clear daylight between your maximum disposable income and the portion of it dedicated to your loan repayments. For example, if you had $1,000 of disposable income each month, your lender is unlikely to approve you for a loan with monthly repayments of $700.
By applying with Savvy, we can give you a clear idea of how much you’ll be able to borrow based on your monthly budget to help you maximise your chances of loan approval.
Top tips for getting personal loan approval with a Part IX
Personal loan repayment calculator
It’s important to have an idea of what different loans might cost you overall before you apply. Fortunately, Savvy’s personal loan repayment calculator is simple to use and tells you everything you need to know about how much different offers might add up to overall based on a variety of different factors.
Your estimated repayments
$98.62
Total interest paid: | Total amount to pay: |
$1233.43 | $5,143.99 |
Apply for your personal loan online
First and foremost, you’ll need to fill out our quick and easy online form. Tell us about yourself, your finances, the loan you’re after and why you need it in just a few minutes.
Once you’ve done this, you’ll be able to assess the products on offer from our partnered lenders. A member of our team will reach out to help you choose the best available offer.
If you’re happy with one of the options available, you can go ahead and formally apply. We’ll handle this for you; simply send the required documents through our online portal and we’ll do the rest.
We’ll let you know when you’re formally approved, which can happen in a matter of hours, and all you’ll need to do is sign your loan contract electronically to receive your funds as soon as the same day.
Personal loan eligibility and documentation
You must be at least 18 years of age
You must be an Australian citizen or permanent resident (or, in some cases, an eligible visa holder)
You must be earning a stable income that meets your lender’s minimum threshold (this can start from as little as $20,000 per year)
You must be employed on a permanent, casual or self-employed basis
You must meet your lender’s minimum requirements related to your credit score and not be bankrupt or under a Part IX debt agreement
You must have an active phone number, email address and online bank account in your name
Your full name, date of birth, address and contact details
Such as a driver's licence or passport
Your last two consecutive payslips (or your last tax return if you're self-employed)
Information about any assets you own (such as a car or house) and liabilities in your name (such as other loans)
90 days of bank statements may be requested, but not always
Common personal loan questions answered
Yes – there’s a range of Centrelink benefits that can be counted as income towards your application, such as age, disability support and veterans’ pensions. Apply with Savvy today and you can speak with one of our friendly support team members about your options.
You can still be approved with unpaid defaults, but not all default types will be accepted. For example, while lenders may accept one or two unpaid finance defaults (such as on other loans) in the past two years, any within the last six months will likely rule you out from getting a loan. Accepted non-finance defaults can include utility or phone bills and equipment hire, which have no limit with some lenders.
Yes – you can submit a joint personal loan application through Savvy. Applying with a second person can increase your chances of approval, as your lender can rely on two sources of income and two borrowers, rather than one.
Some lenders may also enable you to apply with a parent or family member as guarantor. This essentially means that if you become unable to repay your loan, your lender will require your guarantor to take over and repay it. This may be especially helpful if you’re under a Part IX and your parent has a strong credit history, for instance.
Personal loans can be approved and funded as soon as the same day you apply. However, for people with more complex credit histories, lenders may take more time to assess their borrowing profiles and decide whether to approve the loan they’re applying for.
No – there’s no such thing as a loan with guaranteed approval or one without a credit check. This is because all lenders are required to conduct credit checks and assess whether loans are affordable for borrowers as part of their responsible lending obligations. If a lender is advertising guaranteed approval, this is a red flag.
Yes – secured loans are also available, which can potentially help you save by offering lower interest rates. If your car is eligible to be security on your loan (it must meet your lender’s criteria relating to age and condition), you may expand your borrowing power up to as much as $30,000 and loan term up to five years.