The features and benefits of a $10,000 personal loan
You can lock in an affordable rate for your personal loan by comparing your options from a wide range of leading Australian lenders.
Part of the flexibility that personal loans bring is allowing you to choose the term over which you make repayments, from as short as one year up to five to seven.
You also get to decide whether to make contributions on a monthly, fortnightly or weekly basis, which you can structure around your income requirements.
You’ll have the freedom to pay out your loan ahead of schedule if you wish to, giving you the ability to save a significant amount of money overall.
There’s no requirement for you to put up a valuable asset of yours to serve as collateral for your loan, making it a more freely accessible product for those without suitable security.
Types of personal loan
With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.
Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.
Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.
Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.
If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can not only make them more convenient to manage but also potentially save you money overall.
Looking to take off on a holiday with your family but want to pay it off at your own speed? Travelling can be expensive, so you can distribute the cost of your next trip over a period you’re more comfortable with by taking out a personal loan to pay for it.
There are so many costs that go into making your dream wedding a reality, from venue hire to catering to dresses and suits and so much more. By taking out a personal loan, you can start planning the big day you want, even if you can’t pay for it upfront.
Home improvements are desirable for a range of homeowners to help keep their living space fresh and interesting, not to mention increase its value. You can get past the financial hit of renovations with a personal loan paid in instalments.
Personal loans aren’t limited to PAYG employees, though. If you’re running your own business, you can still be approved for financing by submitting tax returns and other alternative documents instead of payslips and utilise your funds however you wish.
There’s a variety of expenses which come with being a student, ranging from the cost of your courses, textbooks and computer to your accommodation. Taking out a personal loan can make these costs more manageable by spacing them out.
Some lenders offer green personal loans, which are designed to be used for energy-efficient appliances and products such as solar panel and air conditioning installation in your home. You can qualify for lower interest rates and fees with this loan.
Why compare personal loans through Savvy?
Ways to maximise your personal loan approval chances
Improve your credit rating
Perhaps the most effective way to enter the application process with the best chance of approval is to have a good credit score. This reflects your past borrowing and servicing of debt with a numerical figure, with higher scores meaning a positive track record and a greater sense of trustworthiness inherent in you as a borrower.
You can improve this by paying off your outstanding debts, lowering credit card limits and getting rid of any you don’t need.
Frequently asked $10,000 loan questions
More about $10,000 personal loans explained
How long will it take for my $10,000 loan application to be approved?
While many personal loans can be approved within just two hours and funded in 24, the reality is that there are a variety of factors which can impact the time it takes to process your loan application. Some of these are in your hands as the applicant, while others are down to the processing power of your lender. On top of having a strong borrowing profile, the variables which can impact the speed of your application include:
- Your loan’s affordability: whether your lender deems the loan you’ve applied for to be clearly affordable for you based on your financial situation can have a bearing on how long it takes to approve. If they can see it’s within your capabilities as a borrower, you’re more likely to be approved straight away, rather than having them take more time to assess further documentation or counteroffer with a lesser amount.
- Whether you have your documents handy: a common reason for delays in the personal loan application process is applicants not having the correct documentation. This may be due to mistakenly submitting an older payslip or simply not providing copies of everything they need. Without all of your documents, your application can’t be formally assessed, with email or phone correspondence further dragging out the process. Double-check your lender’s required documents before you start the process to avoid this happening.
- The time of day and week you apply: although it may not seem significant, applying earlier in the day can make a difference to your application. By submitting your forms in the morning, you can often move closer to the front of the queue and have your chances of processing taking place over multiple days reduced. The same applies to the point of the week: a Friday afternoon application may drag out over a weekend, but Monday applications are far less likely to.
How can I increase my borrowing power?
There are several ways you can go about increasing your borrowing power when applying for a loan of $10,000, which are important to consider if you’re a lower income-earner who may struggle to support its repayments. It’s important to review these before entering the application process, as some or all of these can help you get approved for the size of loan you need. Fortunately, to gain an idea of what you might be able to borrow, you can also make use of our borrowing power calculator. Some of the factors which can impact your overall borrowing power are:
Work on maximising your credit rating
In the same way as increasing your chances of overall approval, your credit score will also factor into your lender’s calculations when it comes to determining how much you’ll be able to borrow. Because it indicates your level of reliability over the past few years when it comes to paying off other loans and bills, a higher score will lead to a lender being more confident in your ability to manage and repay a larger amount. If you’ve repaid a similar loan previously, such as car or personal finance, that will go a long way towards enabling you to borrow the amount you need.
Maintain stable employment and income
Perhaps most important to lenders is your ability to consistently support your loan’s repayments across the entirety of your term, so they’ll want to be certain of your job and income stability. Any clear risk of losing your job or having your hours reduced will reduce your borrowing power (and chances of approval) significantly, as lenders won’t want to take a major risk in lending to you. Showing that your employment is safe (such as a few years in the same job) and income is consistent will help you get approved for a $10,000 loan, particularly if you’re full-time or part-time.
Reduce your expenses
Running over your finances with a fine-tooth comb will help you see where your money is going each week or month. Doing this can help you cut down on any unnecessary expenditure which could otherwise hamper your ability to borrow larger sums of money. For instance, if you have a gym subscription you don’t really use or are spending $300 a month on new clothes alone, reducing both of these can free up more funds in your disposable income to dedicate to the payment of a $10,000 loan over the period you’re most comfortable with.
Build your savings where possible
If you’re in a position to, increasing the amount you have available in your savings can also positively affect your chances of approval for a larger sum. This is because lenders like to see savings as a potential back up in the event your existing income stream dries up. This gives you something to fall back on in the time between your old job and your new one. This is also because routinely saving your money rather than spending it all shows a similar level of discipline which is required for paying off a personal loan.
Compare loans with lower fees and interest
Finally, comparing your options thoroughly can potentially help you save hundreds of dollars. Lenders will run borrowing power calculations based not only on the principal amount you’re asking for but also the interest and fees which are included in each repayment. If they determine you can only borrow $10,000, for instance, the actual loan you’re approved for may end up being closer to $7,000 or $8,000 when interest and fees are taken into consideration. When comparing loans with Savvy, look for offers with the most competitive rates and lowest fees, particularly in terms of the establishment (up to $595) and ongoing charges (up to $10 per month).
What type of personal loan is best for me?
In most cases, when applying for a $10,000 loan, your best option will be to choose a standard unsecured personal loan. These are the most widely accessible finance type, with a more vast range of lenders offering them compared to secured finance. More borrowers can qualify for unsecured finance also, as secured loans come with stricter criteria surrounding the value, age and condition of the asset you put up as collateral (typically your car). It may be the only choice between the two regardless of this, though, as some lenders enforce a minimum of $15,000 to $20,000 on their secured loans.
The other main option for a borrower is a personal line of credit. These act as a more flexible alternative to the standard personal loan in that you can withdraw funds when you need them up to a set limit. These arrangements have no set end date, potentially staying open as long as they’re viable, and only charge you interest on the amount you withdraw. However, interest is typically higher on these loans and fees can be charged even if you don’t use them in a given month. A personal overdraft on your bank account is effectively the same, enabling you to withdraw beyond a balance of $0, except it comes without any mandatory repayments.
Ultimately, though, the right personal loan for you will depend entirely on your individual circumstances and how you wish to obtain and repay your funds. You can compare an array of options all in one place with Savvy to help you get off on the right foot today.
Helpful personal loan guides
Still looking for the right personal loan?
Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.