Understanding funeral loans in Australia
Last updated: 06 August 2025 | Estimated read time: 2 Minutes
Losing someone close to you is never easy – it’s one of life’s toughest moments. And while money might be the last thing on your mind, it often becomes a necessary part of planning a farewell.
If you're worried about covering funeral costs, you're not alone. Research shows that 2 in 5 Aussies have just $1000 in savings, and 1 in 5 of us have $0 savings at all1. With the rising cost of living, unexpected expenses like funerals can feel overwhelming.
That’s where funeral loans can help by offering financial support during a difficult time so you can focus on what matters most.
What are funeral loans and when might you need one?
A funeral loan is a type of unsecured personal loan that helps cover end-of-life expenses. You can apply online, and if approved, the funds are paid directly into your account so you can manage costs as needed.
Because these loans are unsecured, you don’t need to offer any assets as security. This makes it a straightforward option when time and emotions are stretched.
Common funeral costs and how a personal loan could help
Funerals in Australia can cost between $5000-80002, depending on location, services, and personal choices.
Typical costs may include:
- Funeral director fees
- Coffin or casket
- Transport
- Cremation or burial site
- Celebrant or clergy
- Flowers
- Death certificate and permits
- Newspaper notices
Once you’ve got a clear picture of the costs, a funeral loan can help bridge the gap and give you peace of mind during a challenging time.
Things to consider before applying for a funeral loan
We know this is a difficult time, but if you're thinking about applying for funeral finance, here are a few things to keep in mind:
Get a detailed breakdown of costs
Check your credit score
Compare your options
Understand the impact
How Pepper Money supports Australians in difficult times
We’ve been helping Australians through life’s ups and downs for over 25 years and we’re here when things get tough.
Our online application takes around 10 minutes, or you can speak with a lending specialist over the phone. We don’t charge fees over the life of your loan, and you can get a personalised interest rate before applying.
Our unsecured personal loans – Including funeral loans – range from $5,000 to $50,000, with flexible repayment terms based on your needs.
Want to know more? We’re here to help when times are tough.
Use our repayments calculator to estimate your repayments. When you're ready, you can get your individual interest rate in minutes, without affecting your credit score.
Prefer to speak to someone? Call us on 1300 108 794.
Frequently asked questions
Yes. Funeral assistance loans are simple to apply for and if approved, you’ll be given a lump sum in your account to cover bills and expenses.
If you’re an Aussie citizen or permanent resident aged 18 or older, and you’re employed and have an acceptable form of ID, you should be able to apply for a funeral loan. The full criteria for applying via Pepper Money can be found here.
If you’re eligible and approved for a funeral loan, depending on who you bank with, the money will typically be in your hands within 1-2 business days.
A funeral loan is an unsecured personal loan that you use to pay for funeral costs, and later repay. A funeral bond is an investment5, usually offered as part of a life insurance policy, which provides funeral funds or benefits when the nominated person passes away. The bond funds can’t be accessed earlier.
A funeral insurance policy4 typically requires paying monthly or fortnightly premiums towards future funeral costs. The policy pays out a lump sum which can be used on funeral expenses when you die. However, it’s worth knowing that you can end up paying more in premiums than the benefit you or your family receive, and if you stop making repayments on the policy, you lose what you’ve already paid.
If you’ve prepaid part of your funeral or have a life insurance death benefit, a loan could help cover any shortfall. You’ll need to talk to a financial adviser around the options available to you.
Like any loan, if you’re struggling to make repayments you should talk to your lender as soon as possible.
There are free financial counselling services available throughout Australia. Search for someone who can give you good advice such as Financial Counselling Associations or check out the National Debt Helpline. They have lots of resources that can help you sort out your financial present and future.
Sources
1Source: Finder.com.au: https://www.finder.com.au/news/breaking-point-2025
2Source: NSW.gov: https://www.nsw.gov.au/family-and-relationships/deaths/after-a-death/organise-a-funeral-or-memorial-service/how-much-funerals-cost
3Source: https://files.moneysmart.gov.au/media/s3apk2pi/how-to-pay-for-your-funeral.pdf
4Source: https://moneysmart.gov.au/other-types-of-insurance/funeral-insurance
Contributor | Vasè Marcevska, Head of Direct Sales – Mortgages and Personal Loans
Vasè has over 16 years of experience in the Banking and Finance sector, specifically within the Third Party and Consumer lending industry. Her expertise now focuses on enhancing our Customer program through a deep understanding of mortgage origination and service excellence across our Financial products.
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