Personal loan pre-application checklist

Co-author: Michelle Norton

Canstar breaks down how to apply for personal loans online and compares with other application options. But, before you get started, compare personal loan rates and providers!

Across New Zealand, most banks and other lenders have a fairly standardised process for applying for personal loans online – and offline. Here’s a rundown of what you can generally expect from the application process.

Before you get started on applying for any personal loans online, don’t forget an online search of personal loan rates on the market will help you secure a better deal.


Compare Personal Loans

Check personal loan rates, types before you apply

What to know about personal loans


While it might seem like less hassle to charge into applying for personal loans online, you’ll kick yourself later if you see better personal loan rates from other providers. As well as personal loan rates, you also need to consider what type of loan suits you best, and a plan of attack for making repayments.

Canstar’s pre-application checklist:

Applying for personal loans online, over the phone, or snail mail

Now that you’ve checked personal loan rates and sussed out how to pay it back, it’s time to move onto the application process. Applying for personal loans online or over the phone is pretty simple – and generally fast.  There are a few boxes you need to tick before you can start a personal loan application.

To apply for a personal loan you need to:

  • Be an adult.
  • Have a good credit rating.
  • Be a New Zealand citizen or permanent resident.
  • Not be bankrupt.
  • Have proof of a New Zealand home address.
  • Provide proof of your income – usually payslips.
  • If it’s a car loan, provide details about the car you’re buying – registration number, VIN, purchase price, and dealer or seller’s details.
  • Provide details of any other loans or credit cards that you have – other debts, basically.

If you’re not already a customer with that bank, you’ll also need to provide significant proof of your identity. Things you might need to provide include a passport or driver’s license if you have one, Medicare card, birth certificate, and/or rates bill.


Applying for personal loans online – about 2 days for response

How long to wait for a personal loan


After applying for personal loans online, applicants can expect to hear back from the banks – one way or another – within a couple of business days. The bank will ask you to review the supporting information, such as the Product Disclosure Statement, and to send some further documentation.

Documentation required for personal loan approval:

  • Provide proof of your income – usually payslips.
  • Provide details of any other loans or credit cards that you have – other debts, basically.
  • Provide proof of identity.

You can usually post in copies of this documentation, or make a visit to a branch. Just make sure there’s a branch close by if you don’t want to use snail mail.


Keep your eyes peeled for personal loan contract

The next step in applying for personal loans online (or offline) is to keep your eyes peeled for your contract – which will be emailed or posted. Sign and return the loan contract paperwork by posting it or emailing a scanned copy.

The bank will approve the loan within 24 hours of them receiving your signed contract. The funds are then “drawn down” into your account, so you can use it for the purpose of the loan.

Don’t get blindsided by personal loan rates – there might be a catch

If, at any stage, you believe a lending institution has not been transparent, or you feel uncomfortable, feel free to tap into available support. The free and independent service commonly resolves disputes between customers and their lending institutions. It can confirm for you whether the lender has been following a normal process, or is trying to pull the wool over your eyes.


Compare Personal Loans

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