Compare personal loans
Comparing personal loans with Savvy can save you hundreds across your term. We help you choose from a range of lenders across Australia offering competitive rates, flexible repayment options and the freedom to choose your loan, your way. Compare and apply today to get approved within 24 hours.
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|OurMoneyMarket Unsecured Personal Loan|
Apply for an unsecured personal loan between $2001 to $75,000 for a variety of loan purposes. Get a personalised rate estimate in minutes without impact your credit score.More details
|Harmoney Unsecured Personal Loan|
Borrow up to $70,000 with personalised rates and repay over 3,5 or 7 years loan terms.More details
|Now Finance No Fee Unsecured Personal Loan|
Borrow up to $50,000 with no fees, now and forever. Minimum requirement to earn $22,100 p.a. and have good to excellent credit.More details
|Plenti Unsecured Personal Loan (Excellent Credit)|
Apply for an unsecured personal loan and enjoy low rates for excellent credit. With no early repayment or exit fees, there’s a lot to love about this loan.More details
Disclaimer: A comparison rate indicates the true cost of a loan. The comparison rate displayed for this advertiser is calculated based on a loan amount of $30,000 over 5 years and represents the effective rate on the loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
Personal loan product features and benefits
With rates as low as 5.35% p.a. (6.14% p.a. comparison), you can save hundreds, if not thousands, on your personal loan over your term.
You can borrow as little as $2,000 all the way up to $75,000, making your loan suitable for a wide range of purposes tailored to your needs.
You’ll also have the option to dictate the cost of your repayments by selecting a loan term anywhere between one and seven years.
Once you submit your application, you can receive a response within just 60 seconds and have the money transferred to your account inside 24 hours.
We can match you with lenders who offer features such as flexible repayment schedules and no early repayment fees to enhance your finance experience.
Each applicant is given their own unique interest rate for their personal loan based on the loan they’re looking for and their profile as a borrower.
Why so many Australians find their personal loan with Savvy
What you can use your personal loan for
Accessing a personal loan to purchase your next car saves you from worrying about whether it’s suitable to serve as security for your loan. Buy your next set of wheels with no restriction on age.
Multiple debts on the go at once? Applying for a personal loan to consolidate your debts brings them under one roof to ensure they’re manageable and potentially can save you on interest with credit debts.
Everyone needs a holiday every now and then, but you may not be able to afford it. Fund your next adventure here or abroad with a personal loan and pay for your trip on your terms.
There are so many costs that go into a wedding, from venue hire to catering to dresses and suits. A personal loan can help make your dream wedding a reality, even if you can’t pay for it upfront.
Home improvements are desirable for all homeowners to keep their living space fresh and interesting. Get past the financial hurdle of renovations with a personal loan and repay it in smaller instalments.
Personal loans aren’t limited to PAYG employees. Self-employed workers can be approved for financing by submitting tax returns, or alternative documents, instead of payslips and utilise the funds however they wish.
Checklist before applying for your personal loan
First and foremost, it’s crucial to find out whether you’re actually eligible for your personal loan. Fortunately, our lenders are flexible with their qualification criteria, which helps more Australians apply for financing. The criteria you’ll need to meet include:
- 18 years or older and a citizen or permanent resident
- Holding stable employment and earning at least $20,000 to $26,000 annually
- Having no prior history of defaults or bankruptcy
The pros and cons of personal loans
Bring your financial goals within reach
You may not be able to achieve your financial goals on your own or save up enough in time, but a personal loan can help you do so and pay it off at a manageable pace.
Customise your ideal repayment schedule
With flexible available loan amounts, terms and schedules, you can tailor your loan’s repayments to suit your personal preferences for how to pay off your debt.
Use them how you like
Unlike other, more rigid types of finance, personal loans are designed to be highly versatile in how they can be used, meaning you can essentially distribute your funds how you wish.
Often cheaper than credit cards
Credit cards generally come with steep interest rates and fees which apply if you can’t pay them off within a month, so personal loans are often more suitable for larger purchases.
Can boost your credit score
If you’re able to keep up with your repayments without much trouble, or even pay off your debt ahead of schedule, you can improve your credit score further.
Potentially high rates and fees
You may find some personal loans come with high rates and fees, but it’s important to compare your options to lock in the cheapest deal available to you.
Impact your credit score if you can’t repay
In the event you’re unable to keep up with your required repayments, your credit score will be negatively affected and your asset could be repossessed and sold on a secured loan.
Lesser borrowing power than other loans
While you probably won’t have any real cap on the maximum value of a car or home loan, personal loans are more restrictive in this regard (albeit still useful for large amounts).
Top tips for increasing your borrowing power
The higher your credit score, the more trustworthy you’ll be seen to be by your lender. Displaying a positive history of repaying similar loans will give them more confidence in your ability to service the loan you’re applying for. An increased score can not only lead to expanded borrowing power but also lower interest rates and fees.
Adding your partner or another family member as a co-borrower to your application will also boost your chances of approval. This is because it’s seen as a safer proposition to have two borrowers on an application compared to one, as there’s an in-built backup if one of the applicants loses their job which isn’t present on single applications.
Laying out a clear budget before you apply can help you see where your money is going. By taking the time to consider this and determine where you can perhaps cut back on expenses or lower credit card limits, you’ll be able to free up more money each month to dedicate to the repayment of your personal loan, which then increases your borrowing power.
Lenders always look for borrowers who can display a clear level of stability in their lives. Having long-term, permanent employment suggests that your income stream will be stable and less likely to run dry compared to recent casual or self-employees. Similarly, staying in the one location will reduce the risk of fluctuating rent or mortgage costs.
Further frequently asked personal loan questions
Personal loans explained
Market update for personal loans: May 2022
Australia enters the month of May on the back of an increase in the national cash rate by the Reserve Bank of Australia (RBA), with the change from 0.1% to 0.35% representing the first time the rate has risen since November 2010.
While we won’t be able to see the true impact of this rise for some time, it’s likely to result in rate increases across the board from lenders around Australia, which will affect those either about to apply for finance or currently paying off their variable rate personal loans.
This doesn’t mean you won’t be able to find affordable personal loan deals, though; by comparing your options with Savvy, you’ll still have the tools to find the best deal for your needs and lock in the lowest rate you can.
In other news, the Australian Bureau of Statistics (ABS) released their lending indicators for March of this year at the start of this month, revealing the total value of new fixed-term loan commitments fell by 0.4% compared to those taken on in February (from $2.30 billion to $2.29 billion).
This is a slight decrease on the peak February reached, which was the highest total value of these new loan commitments since April of 2016, but represents the greatest recorded figure in the month of March across the ABS’ reporting period dating back to March 2004.
Closer to home, Savvy has recently partnered with Plenti to boost the number of options for you to compare and choose from, with rates as low as 6.39% p.a. (6.39% p.a. comparison) and no early exit fees.
What are personal loans and how do they work?
Personal loans are one of the most common types of finance in Australia. They enable borrowers to be approved for a lump sum of money which can be used essentially for any purpose they wish, with some of the most common reasons listed above. They work in the same way as any other standard loan product: you’re given a lump sum which is to be repaid in either weekly, fortnightly or monthly instalments over a set period of between one and seven years.
On top of your repayments, you’ll be required to pay interest, which is calculated daily based on your outstanding loan debt. This means the interest you pay will decrease with each instalment as your outstanding debt decreases. For instance, on a $30,000 at 7.5% p.a. paid monthly over five years, you would pay $187.50 in interest after the first month but approximately $184.91 the next month, due to the fact that your loan principal has decreased.
How much can I borrow with a personal loan?
Personal loans tend to come with a borrowing range of as little as $2,000 up to a maximum of $75,000, although some lenders will cap this at $50,000 instead. This only applies to unsecured finance, though, as secured loans can be taken out for as much as $100,000 (depending on the value of your attached asset). However, there’s a range of factors which can impact your individual borrowing power beyond the type of loan you take out. It’s important to be across these before diving into your application. The main variables to consider are:
- Your income: of course, you’ll need to be earning enough to support your loan repayments. In most cases, higher income-earners will be capable of borrowing more than lower income-earners.
- Your expenses: income can only get you so far, though, as your regular expenses will eat into your usable funds. Whether they be other loan repayments or costs such as utilities and shopping, these will have an impact on the amount you can afford each month and your approved loan amount as a result.
- Your credit score: the better your score, the more likely you are to be approved for a larger sum. Lenders view credit scores as an indication of your reliability as a borrower, particularly if you’ve successfully repaid similar loans previously, so they’ll feel more confident in approving an application for a greater amount.
How should I compare personal loans?
There are several key ways to enter the personal loan comparison process. This is a crucial step to take, as having a clear understanding of the types of offers available on the market is always important as a way to maximise your chances of locking in an affordable deal which suits your needs. You can compare loans right here with Savvy, as we’re partnered with a range of reputable financiers to give you the highest quality of comparisons possible before you apply. Start the personal loan comparison process by addressing the following points:
Type of loan
First of all, it’s important to decide what type of personal loan to take out. The first key decision is whether to opt for an unsecured or secured loan. The latter involves attaching an asset such as your car or savings to the finance deal to serve as security, which means the asset can be sold off to recoup any lost funds if you become unable to pay off your debts. Unsecured finance sidesteps this requirement, making them faster and more accessible to a wider range of people, but interest rates are higher on these loans and borrowing is generally capped at $75,000 (compared to $100,000 for secured loans).
Alternatively, you might wish to take out a personal line of credit instead. These are structured differently from standard loans, as you’re approved for a set limit and can withdraw funds whenever you wish, rather than manage a lump sum from the outset. Because of this, they’re seen as more flexible than regular loans, as you can take money when you need it. You’ll only need to pay interest on the amount you use (albeit at a higher rate) and lines are often revolving, meaning you can keep them open as long as they’re viable. You’ll typically have to pay fees even if you don’t access it in a given month, though.
Interest rates are another crucial factor to consider when deciding on which loan is right for you. This not only relates to the rate itself (the lower, the better) but also the type of interest. Personal loans can come with either fixed or variable interest and it’s worthwhile knowing the difference between the two.
Fixed interest is locked in from the start of your loan and doesn’t fluctuate at all. This means your repayments will remain the same across your term no matter what happens to your lender’s interest rate over that time, protecting you from rate rises but blocking rate decreases. This makes them more suitable if you wish to budget around your repayments well into the future.
Variable rates, on the other hand, are open to fluctuation. For instance, if the RBA reduces the national cash rate and your lender decides to pass that on to you, the cost of your repayments will decrease alongside the total interest portion. However, you run the risk of having interest rates increase on you during your term and may not be able to budget as effectively.
There are several different fees which can apply to your personal loan (which are detailed below), so it’s always worth your time making the effort to compare them between different finance deals. For instance, a loan with $10 monthly fees would cost you $600 over a five-year term, so opting for one which doesn’t charge any ongoing costs could prove the difference between spending that money and being able to save and spend it on another worthwhile purpose.
A simple way to compare interest and fees all at once is by looking at loan comparison rates. These are percentage figures which are calculated by adding the cost of your loan’s fees onto its interest rate, giving you a more comprehensive and “truer” indication of the overall cost of your loan. Not all fees will be included in this figure, though, as charges such as early or late repayment fees are conditional on a particular set of circumstances taking place, whereas establishment and ongoing fees are charged (or not charged) regardless.
As mentioned, unsecured loans can be approved for up to $75,000 and secured finance for up to $100,000. However, different lenders offer different borrowing ranges, both in terms of minimum and maximum loan amounts. Many lenders cap their unsecured loans at $50,000, while some lenders are willing to approve applications of as little as $2,000 when others require applications of at least $5,000. If your desired amount falls on the higher or lower end of the scale, you should give greater thought to which lender you choose.
Additionally, lenders offer different available loan terms. For instance, while many will offer the full range of one to seven years, some lenders will require borrowers to repay over a minimum of three years or a maximum of five. You should always consider how long you’d like to take when comparing loans, as it’ll help you choose a lender which can accommodate your needs.
On top of this, there are several features which borrowers may specifically look for when choosing their preferred personal loan. The main one of these is free additional repayments, or early repayments without fees, as paying ahead of schedule can help you save hundreds on interest and fees (if not more). Some lenders allow you to withdraw these additional repayments down the track with a redraw facility, which may also come in handy. Finally, being able to choose between weekly, fortnightly or monthly repayments helps you tailor your payment cycle to your needs.
What else can I use a personal loan for?
You aren’t limited when it comes to how you can make use of your personal loan funds. In addition to some of the reasons above, you might take a personal loan out to fulfil the following purposes:
- alleviate the financial pressure brought on by unexpected or steep medical expenses
- pay for optional procedures such as cosmetic surgeries
- cover veterinary bills for your pet
- cover expenses related to your studies, such as for textbooks or accommodation
- helping you pay for expensive jewellery such as an engagement ring
- ease the burden of pricey school fees
How do I apply for a personal loan?
While the personal loan application process will differ slightly between lenders, it’ll largely remain the same across the board. With more lenders investing in efficient online processing and application portals, there’s never been an easier time for you to submit your forms and get approved. Your application is likely to follow these key steps:
- Compare your options with Savvy: Be safe in the knowledge that you’re choosing the right loan for your needs by comparing a range of offers right here with Savvy before you apply.
- Fill out your lender’s application form: Click through and fill out an application form to let them know about you and the loan you need. You may need to supply initial and supporting documents here.
- Receive approval and sign your contract: Once they’re satisfied with your application, you can sign your loan agreement digitally and return it to have your funds advanced to your account.