Is there an age limit for personal loans in Australia?

To qualify for a personal loan, applicants must be at least 18 years old. This is because 18 marks the legal age of adulthood in Australia, allowing individuals to enter into legally binding contracts, including loan agreements.

Lenders will require proof of age, such as a birth certificate or passport, to verify eligibility when processing your application.

Beyond age, different lenders have different rules for who they give personal loans to, but there is a checklist of requirements most tend to follow. For example, the lender will wish to know who employs you, your credit history, your debts and assets and whether you’re an Australian resident.

While there is no maximum age for a personal loan, it can sometimes be harder to show a lender you can repay a personal loan when you reach retirement age.

Lenders assess an applicant's ability to repay the loan, and for older Australians, demonstrating a stable income post-retirement is crucial. While some lenders may impose age limits, many consider alternative sources of income, such as superannuation, pension payments, and government benefits when evaluating eligibility.

If you can show financial stability and the ability to meet repayments, you may still qualify for a personal loan—even at an older age. Using collateral, such as property or other valuable assets, can also improve approval chances and may even help you secure a lower interest rate. A good credit score further strengthens your application, signalling to lenders that you're a responsible borrower.

If you are too young to take out a personal loan, there are sometimes guarantor personal loans available. In this scenario, the guarantor, usually a family member or friend, agrees with the lender they will take on the responsibility of repaying the loan if you are ever unable to pay. Given the burden these loans can place on loved ones if things go wrong, it’s important to seek advice and look at other available options.

Financial support for students

Education, especially university or TAFE, can be very costly for those who do not get financial support from their parents. Besides the cost of tuition fees, there are living and travelling costs to think about.

There are various loan and support options available for young people who are studying, including:

• HECS-HELP:Assists eligible students in paying tuition fees, allowing them to focus on their studies without immediate financial burden.​
• Youth Allowance: A Centrelink program providing financial support to young people who are studying or undertaking an apprenticeship full-time.

While it may be difficult to get a loan when you reach your mid-60s or older, it is not impossible. It depends on the lender, the loan term and your credit rating.

• Home Equity Access Scheme – Under this scheme, eligible pensioners can get a fortnightly loan (or a lump sum) to top up their retirement income. The loan isn’t taxed, but must be paid back with interest.
• Secured Personal Loans – Older Australians can explore secured loans, where assets such as property or vehicles serve as collateral. Using collateral reduces the lender’s risk, potentially making it easier for retirees to qualify and secure more favourable loan terms.