Low Doc Personal Loans
‘Low document’ or loc doc personal loans are loans that require little to no documents from the borrower to declare how much income they make. They rely mainly on ‘good faith’ that you would be able to meet your loan obligations.
You would generally apply for these loans if you don’t qualify for traditional loan types (due to being unable to verify your income through payslips, group certificates or tax returns) and need instant cash or liquidity.
An ‘unsecured loan’ is a loan issued that does not secure the loan against an asset (such as a house or a car), should you be unable to meet the repayment requirements. These types of loans generally come with extremely high interest rates.
Tips for Low Doc Personal Loan Application in Australia
Low document loans generally require some form of evidence of income, to prove you are able to meet your loan obligations. These loans are often provided to self-employed individuals, and require much more substantial deposits, equity (for example, property), or savings in the bank.
No document loans on the other hand, require no evidence of income, but a signed declaration that you are able to make the repayments. If you’re a low income earner, unemployed, work occasionally or an immigrant, no document loans may sometimes be an option, as they are much easier to qualify for.
One of the biggest drawbacks in low doc, no doc or unsecured loans, is they generally have significantly higher interest rates when compared to more traditional loans. The length of the offered loans may also be much shorter than most other loans, meaning the repayments would be much higher. If you are currently receiving welfare payments read the Centrelink loans page on this site for more information.