Bank Loan at 17? Here's How to Get Approved (2026)

At 17, the world is full of possibilities. You might be preparing for university, starting your first job, or planning a big purchase, such as a car or even considering a small business venture. Naturally, you might wonder: "Can I get a bank loan at 17?" This question pops up often, and while getting a loan at such a young age can be challenging, it's not entirely out of reach. With the right information and preparation, you can navigate the financial landscape effectively.

Understanding Loans for Minors

Loans are a common financial tool used to fund significant purchases or investments. However, when it comes to minors—those under 18 years of age—getting a loan in Australia is not straightforward. The legal age to enter into a binding contract is 18, which means most banks and financial institutions are reluctant to lend to individuals under this age. This is primarily due to the legal implications and risks involved in lending to someone who cannot legally be held to a contract.

Despite this, there are pathways you can explore if you're determined to secure a loan before turning 18. These include joint loans, guarantor loans, and alternative financial products designed for young Australians. Understanding these options is crucial as you plan your financial future.

Loan Options and Requirements

In 2026, the Australian financial market offers several avenues for young individuals seeking loans. Here's a breakdown of what's available:

Each of these options comes with specific requirements:

• Guarantor Loans: Require a parent or guardian to co-sign. This person assumes responsibility if you default on the loan.
• Joint Loans: Involve a co-borrower who is legally an adult, sharing responsibility for repayments.
• Personal Loans for Students: Some banks offer loans tailored to students, often needing proof of a steady income, such as a part-time job or a regular allowance from parents.

Steps to Secure a Loan at 17

If you're determined to get a loan at 17, follow these steps to increase your chances of approval:

1. Assess Your Needs: Determine why you need the loan and how much you need to borrow. Being clear about your purpose will help in choosing the right type of loan.
2. Consult with a Financial Advisor: Speak with a professional who can guide you through the options available. At Esteb and Co, we offer access to over 83 lenders, providing a broad spectrum of choices.
3. Choose the Right Loan Type: Based on your needs and eligibility, decide whether a guarantor, joint, or student loan is most suitable.
4. Prepare Necessary Documents: Gather required documentation such as identification, proof of income, and any required statements from a guarantor or co-borrower.
5. Submit Your Application: With everything in place, submit your application to a lender. Be prepared to discuss your financial situation and plans.
6. Review Loan Offers: If approved, review the loan terms carefully. Look for hidden fees or unfavourable conditions.
7. Accept and Manage Your Loan Responsibly: Once you accept an offer, focus on timely repayments to build a positive credit history.

Expert Tips and Considerations

Securing a loan at a young age requires careful planning and consideration. Here are some expert tips:

• Build Credit Early: Start building your credit by managing any small debts or credit cards responsibly. This will help you in future loan applications.
• Understand the Risks: Be fully aware of the risks involved, especially if involving a guarantor who will be impacted if you default.
• Seek Professional Advice: Use resources like Esteb and Co to explore your options with access to a wide network of lenders who might offer more flexible terms.
• Consider Alternatives: If a traditional loan isn't feasible, consider alternatives like saving up, using government grants, or seeking scholarships if you're a student.
• Stay Informed: Keep up-to-date with the market and regulatory changes that might impact young borrowers.

Frequently Asked Questions

1. Can I apply for a loan without a job?
   Most lenders require proof of income, but if you have a steady allowance or other income sources, some lenders might consider your application.
2. What is a guarantor?
   A guarantor is someone who agrees to repay the loan if the borrower defaults. This is often a parent or guardian for young borrowers.
3. How can Esteb and Co assist me?
   With access to over 83 lenders, Esteb and Co can help you compare different loan products and find one that suits your needs.
4. Are there fees for applying for a loan?
   While application fees vary by lender, it's crucial to review all associated costs before committing to a loan.
5. How can I improve my loan approval chances?
   Improving your credit score, having a reliable guarantor, or securing stable income can significantly boost your chances.
6. Is it better to wait until I'm 18?
   While waiting might offer more options, if you need a loan urgently, exploring alternatives with proper guidance can be beneficial.
7. What if I'm denied a loan?
   Consider improving your financial profile or seeking advice from a financial advisor on alternative funding options.