How Much Can I Borrow for a Personal Loan?

How much you can borrow for a personal loan depends on your income, existing debts, and living expenses. Most unsecured personal loans in Australia fall between $2,000 and $50,000, but some lenders approve up to $200,000 unsecured for strong applicants who pass more rigorous credit assessment. On a $70,000 salary with no other debts and typical living costs, you could realistically borrow $20,000 to $45,000. Higher amounts are possible but require a deeper credit review.

How lenders calculate your borrowing power

Every personal loan application goes through a serviceability assessment. The lender needs to confirm you can comfortably make the repayments after covering all your other commitments. The core calculation is straightforward: your net monthly income, minus your living expenses, minus your existing debt repayments, equals your surplus income. The maximum loan amount is the figure where the proposed repayment would consume most of that surplus.

What trips borrowers up is how lenders measure each piece. Your declared expenses are checked against the Household Expenditure Measure (HEM), a benchmark developed by the Melbourne Institute from ABS spending data. If your stated expenses are lower than HEM for your household type, the lender uses HEM as a floor. In 2026, HEM for a single adult with no dependants sits at roughly $1,500 to $1,800 per month, depending on the lender's version. For a couple with two children, that floor rises to $3,200 to $3,800 per month.

How much you can borrow by salary

The table below shows estimated personal loan borrowing ranges by gross annual salary. These assume a single borrower with no dependants, renting at $400 per week, no existing debts, good credit (Equifax 666+), and a 5-year unsecured loan at 10% p.a.

These ranges are indicative. Amounts above $50,000 unsecured typically require a more in-depth credit assessment (see below). Your actual borrowing power shifts based on your living expenses, number of dependants, existing debts, credit score, and whether the loan is secured or unsecured. A secured personal loan using a vehicle as collateral can increase both the amount and reduce the rate. See our guide to secured vs unsecured personal loans for the cost comparison.

What changes above $50,000

Most lenders offer a streamlined assessment for personal loans up to $50,000. Above that threshold, the credit process steps up significantly. Lenders lending $50,000 to $200,000 unsecured typically require verified income (payslips confirmed with the employer, or full tax returns rather than just bank statements), a longer employment history (12 months minimum with the same employer or in the same industry), a stronger credit profile (Equifax 700+ in most cases, with no defaults in the past five years), a lower debt-to-income ratio, and in some cases a face-to-face or video meeting with the borrower.

The reason is risk. A $15,000 unsecured loan gone bad is a manageable loss for a lender. A $150,000 unsecured default is not. The deeper the assessment, the more confident the lender needs to be that the borrower can service the full term. Fewer lenders operate in this space, which also means less rate competition at the higher end.

Worked example: $70,000 salary

Here is how a lender might assess a personal loan application on a $70,000 gross salary.

Step 1: Net income. $70,000 gross becomes approximately $4,700 per month after tax and Medicare levy.

Step 2: Living expenses. The borrower declares $2,200 per month (rent $1,733 plus food, transport, insurance, utilities). The lender's HEM floor for a single adult is $1,650. Since the declared figure is higher, the lender uses $2,200.

Step 3: Existing commitments. The borrower has a $5,000 credit card (minimum repayment assessed at 3% of the limit: $150 per month) and a $20 per month phone plan on contract. Total committed: $170.

Step 4: Surplus income. $4,700 minus $2,200 minus $170 = $2,330 per month available.

Step 5: Proposed repayment. A $30,000 unsecured loan at 10% p.a. over five years costs $637 per month. The surplus after this repayment is $1,693, which is comfortable. A $50,000 loan at the same terms costs $1,062 per month, leaving $1,268, still serviceable but approaching the upper boundary of most lenders' comfort zone for a streamlined assessment.

Result: This borrower would likely be approved for $30,000 to $50,000 through a standard assessment. Amounts above $50,000 would require a lender willing to run the deeper credit process, and the rate may be higher to reflect the additional risk.

What reduces your borrowing power

Credit card limits, not balances

Lenders assess your credit card at its full limit, not its current balance. A $10,000 credit card with a $200 balance still counts as $10,000 of potential debt. The minimum repayment (typically 3% of the limit) reduces your surplus by $300 per month. Closing unused credit cards before applying is one of the fastest ways to increase your borrowing capacity.

Buy now, pay later (BNPL)

Most lenders now include BNPL commitments in their serviceability calculations. Active Afterpay, Zip, or Humm accounts reduce your surplus income. Some lenders view BNPL usage as a risk indicator regardless of the amount, particularly if you have multiple active accounts. Paying off and closing BNPL accounts before applying removes this drag on your application.

Existing loans

Every existing loan repayment, whether car loan, personal loan, or HECS-HELP, reduces your available surplus. HECS-HELP repayments are assessed at the compulsory rate for your income bracket (currently 1% to 10% of income depending on earnings). A $30,000 HECS debt at $70,000 income triggers a 4.5% repayment: $263 per month that directly reduces your borrowing power.

Number of dependants

Each dependant increases the lender's HEM floor. A single adult's baseline might be $1,650 per month. Add a partner and that rises to $2,400. Add two children and it climbs to $3,200 to $3,800. On the same salary, a borrower with a family can borrow significantly less than a single borrower.

How to maximise your borrowing power

Close unused credit cards and reduce limits on cards you keep. If you have a $15,000 limit and only ever use $3,000, call the bank and drop the limit to $5,000. That single change could add $5,000 to $10,000 to your personal loan borrowing capacity.

Pay off and close BNPL accounts at least 30 days before applying. Clear any overdue bills or small debts in collections. Consolidate existing debts if the total repayment drops. Avoid applying for any other credit in the three months before your personal loan application, as each enquiry reduces your credit score by 10 to 20 points.

If your capacity falls short on an unsecured loan, consider a secured personal loan. Offering a vehicle as collateral can increase your approved amount and reduce your rate, which in turn reduces the repayment and frees up more surplus income. For borrowers with below-average credit, securing the loan may be the difference between approval and decline. See our guide to personal loans with bad credit for options by credit tier.

This article is general information only and is not financial advice.