Loan for Someone Else? Here's How to Get Approved (2026)

In an increasingly interconnected world, you might find yourself in a position where you're considering getting a loan for someone else. Whether it's helping a family member buy their first home, supporting a friend through a financial crisis, or any other scenario, the idea of taking on financial responsibility for someone else is both generous and complex. Let's explore whether you can get a loan for someone else, and what you need to know before making such a commitment.

Understanding Getting a Loan for Someone Else

Getting a loan for someone else can take different forms, such as acting as a guarantor, co-signing, or applying for the loan in your name with the intention of the other person making the repayments. Each option carries its own set of responsibilities and risks, and it’s crucial to understand the implications before proceeding.

Loan Types, Rates, and Requirements

When considering a loan for someone else, it’s important to understand the different types of loans available and what lenders typically require. The Australian loan market in 2026 offers a variety of options, each with distinct rates and eligibility criteria.

Lenders, including those in the panel of 83+ lenders that Esteb and Co works with, will evaluate your financial situation to determine your eligibility. This includes assessing your credit score, income, and ability to repay the loan. It’s essential to meet these requirements to secure a favourable rate.

Steps to Get a Loan for Someone Else

Embarking on the journey to secure a loan for someone else involves several steps. Here’s a practical guide to help you navigate this process:

1. Assess Financial Impact: Consider how the loan will affect your financial situation. Understand the risks involved if the other party defaults.
2. Choose the Right Loan Type: Determine whether a personal, home, or car loan is appropriate based on the needs of the person you're helping.
3. Gather Necessary Documents: Collect all required documents such as proof of income, identification, and any additional information the lender requires.
4. Consult with a Mortgage Broker: Engaging a professional like Esteb and Co can help you find the best rates and terms from their wide network of lenders.
5. Understand the Terms: Make sure you comprehend the loan terms fully, including interest rates, repayment schedules, and penalties for missed payments.
6. Finalise the Agreement: Once you’ve selected the best loan option, work with the lender to finalise and sign the agreement.

Tips and Considerations

Here are some expert tips to consider before getting a loan for someone else:

• Discuss Expectations: Have a candid conversation with the person you are helping about repayment expectations and contingencies if they face difficulties.
• Legal Advice: Consider seeking legal advice to understand your rights and obligations fully.
• Backup Plan: Develop a backup plan in case the primary borrower cannot make payments. This might involve setting aside emergency funds.
• Regular Check-ins: Schedule regular check-ins with the person you’re helping to monitor progress and address any issues early on.
• Impact on Credit: Remember that this loan will impact your credit score and borrowing capacity. Ensure this aligns with your financial goals.

Frequently Asked Questions

Here are some common questions about getting a loan for someone else:

1. Can I co-sign a loan in Australia? Yes, co-signing is a common practice, but it means you are equally responsible for the loan.
2. What happens if the borrower defaults? As a co-signer or guarantor, you are legally obligated to make repayments if the borrower defaults.
3. Will this affect my ability to get future loans? Yes, the loan will be considered part of your financial commitments, affecting your borrowing capacity.
4. Are there tax implications for co-signing a loan? Generally, there are no direct tax implications, but it’s wise to consult a tax professional.
5. Can Esteb and Co assist with finding the right loan? Absolutely, with access to over 83 lenders, Esteb and Co can guide you to the most suitable loan options.