Increase Personal Loan? Here's How to Gain Control Fast

Are you feeling financially squeezed and wondering if you can increase your personal loan? Whether it's for unexpected expenses, home improvements, or consolidating debt, increasing your personal loan can sometimes be a viable solution. But how do you go about it, and what should you consider? Let's dive into the details to help you make an informed decision.

Understanding Personal Loan Increase

Before you decide to increase your personal loan, it's essential to understand what this entails. A personal loan increase means you are borrowing additional funds on top of your existing loan. This is different from taking out a new loan because you're modifying the terms of your current agreement. This can be advantageous if you have favourable terms or a good relationship with your lender.

However, increasing your loan also means you'll be increasing your total debt and potentially extending the loan term, which could lead to more interest paid over time. It's crucial to weigh these pros and cons before proceeding.

Current Market Rates and Requirements

As of 2026, personal loan interest rates in Australia range from approximately 6.49% to 12%, depending on various factors such as your credit score, the lender, and the loan amount. Some lenders might offer lower rates if you have a good credit history or a strong relationship with them.

When considering an increase, eligibility criteria will typically include:

• Credit Score: A minimum score of 650 is often required. Higher scores may offer better rates.
• Income Verification: Proof of steady income, such as payslips or tax returns.
• Debt-to-Income Ratio: Most lenders prefer a ratio below 40%.
• Existing Loan Standing: Your current loan should be in good standing with no missed payments.

With access to over 83 lenders, Esteb and Co can help you navigate these options to find the best fit for your needs.

Steps to Increase Your Personal Loan

If you've decided that increasing your personal loan is the right move, follow these steps:

1. Review Your Budget: Ensure that you can comfortably afford the increased repayments. Use a loan calculator to estimate new payments.
2. Check Your Credit Report: Obtain a copy of your credit report and ensure all information is accurate. A higher credit score can improve your chances of approval.
3. Contact Your Lender: Speak with your current lender to discuss the possibility of increasing your loan. They can provide specific guidance and requirements.
4. Prepare Documentation: Gather necessary documents, such as proof of income, current loan details, and identification.
5. Submit a Formal Request: Complete any required forms and submit them to your lender. Be prepared to explain why you need the increase and how you plan to repay it.
6. Await Approval: Your lender will review your application and inform you of their decision. This process can take anywhere from a few days to a couple of weeks.

Tips and Considerations

Before you proceed, here are some expert tips to consider:

• Evaluate Other Options: Consider alternatives like credit card balance transfers or home equity loans, which might offer better terms.
• Understand the Costs: Be aware of any fees associated with increasing your loan, such as administrative fees or higher interest rates.
• Negotiate Terms: Don't hesitate to negotiate better terms with your lender, especially if you have a good repayment history.
• Long-Term Financial Health: Ensure that increasing your loan aligns with your long-term financial goals and doesn't lead to unmanageable debt.

Frequently Asked Questions

1. Can I increase my personal loan with bad credit? It may be challenging, but not impossible. You might face higher interest rates or need a co-signer.
2. How much can I increase my personal loan by? This depends on your lender and financial profile, but generally, lenders will assess your ability to repay the increased amount.
3. Will increasing my loan affect my credit score? Yes, applying for more credit can temporarily lower your score, but consistent repayments will improve it over time.
4. Can I switch lenders to get a better rate? Yes, refinancing with a different lender can sometimes offer better terms, but be aware of any exit fees from your current loan.
5. How long does it take to process a loan increase? The process can take from a few days to a couple of weeks, depending on the lender and your preparedness.
6. Is it better to take a new loan or increase my existing one? This depends on your current loan terms and financial situation. Compare the total cost of both options.
7. What if my lender denies my increase request? Consider improving your credit score or exploring other lenders. Esteb and Co can assist with options from our panel of over 83 lenders.

Increasing your personal loan can be a helpful financial tool if done wisely. By understanding the process, current market conditions, and your personal financial situation, you can make a decision that supports your financial well-being. Always consider seeking professional advice to guide you through the process.