Part-Time Loan? Here's How to Get Approved (2026)

Securing a loan while working part-time can seem daunting, especially when you're working 20 hours a week or less. This can be a significant concern for many Australians who rely on part-time work due to various personal and professional commitments. But fear not, because there are still viable options available to you. Let's explore how you can obtain a loan even if you're not working full-time.

Understanding Loans for Part-Time Workers

When it comes to getting a loan, full-time employment is often seen as the standard by lenders. However, the financial landscape has evolved, and many lenders now understand that part-time workers can also be reliable borrowers. In essence, a loan for a part-time worker is similar to a regular loan but takes into account your unique working situation and income level.

Part-time employment is defined as working fewer than 35 hours per week. Many Australians find themselves in this category due to flexible work arrangements, studies, or family commitments. It's important to know that while you can secure a loan, lenders will scrutinise your income, expenses, and overall financial situation more closely.

Current Loan Options and Requirements

In 2026, the Australian loan market offers a variety of options for part-time workers. Interest rates and eligibility vary, but understanding these can help you navigate the process more effectively.

Interest rates for personal loans typically range from 6.49% to 12%, depending on your credit score and the lender. Mortgage interest rates may vary, with current averages around 5.75% to 7.25% for part-time workers. Note that these rates are indicative and can change based on economic conditions.

To qualify for a loan, you typically need to demonstrate a stable income. For part-time workers, this means showing consistent earnings over a period, often evidenced by payslips, tax returns, or bank statements. Minimum income requirements differ across lenders, but most prefer an annual income of at least $20,000 for personal loans and $35,000 for home loans.

Steps to Secure a Loan as a Part-Time Worker

Here’s how you can increase your chances of securing a loan while working part-time:

1. Assess Your Financial Situation: Evaluate your income, expenses, and existing debts. This gives you an idea of what you can afford to borrow.
2. Improve Your Credit Score: A higher credit score can lead to better interest rates and loan terms. Pay off outstanding debts and ensure timely bill payments.
3. Gather Documentation: Collect payslips, bank statements, and tax returns to prove your income stability. Lenders like Esteb and Co, with access to 83+ lenders, will require these documents to assess your application.
4. Consider a Guarantor: Having someone with a stable income co-sign or guarantee the loan can improve your approval chances and terms.
5. Shop Around: Compare offers from multiple lenders. Esteb and Co can assist by providing options from their extensive panel of lenders to find the best fit for you.

Expert Tips and Considerations

Securing a loan as a part-time worker requires careful planning and consideration. Here are some expert tips to help you:

• Build a Strong Savings Record: Demonstrating a habit of saving can show lenders you are financially responsible.
• Limit Unnecessary Expenses: Reduce your discretionary spending to improve your debt-to-income ratio, making your loan application more appealing.
• Stay Informed: Keep abreast of market trends and interest rate forecasts to make informed decisions.
• Be Honest: Always provide accurate information on your loan application to avoid complications.
• Consult a Mortgage Broker: Brokers like Esteb and Co can offer tailored advice and access to a wide range of products that suit your needs.

Frequently Asked Questions

Here are answers to some common questions part-time workers have about getting loans:

1. Can I get a mortgage with a part-time job? Yes, many lenders offer mortgages to part-time workers if you can prove stable income and meet other criteria.
2. Will my interest rate be higher as a part-time worker? Not necessarily. Rates depend on various factors, including your credit score and the lender's policies.
3. What if I have multiple part-time jobs? You can combine incomes from multiple jobs to meet income requirements, provided you can prove stable earnings.
4. Is it easier to get a personal loan than a mortgage? Personal loans generally have less stringent requirements, but your income and creditworthiness will still be evaluated.
5. Can I include government benefits as part of my income? Yes, some lenders consider government benefits as part of your total income, but this varies by lender.
6. What steps can I take if my application is denied? Improve your financial situation by paying down debts, increasing savings, or consulting a broker for alternative options.
7. How can a broker help me? Brokers like Esteb and Co can offer personalised advice, negotiate on your behalf, and find suitable loan products from over 83 lenders.