The features and benefits of personal loans up to $100,000
With secured personal finance, you can enjoy a loan starting from the lowest rate available on the market for your profile and lock in savings across your repayments.
You get to decide the length over which you repay your large loan sum, with terms available up to seven years to help ensure that each of your repayments are manageable.
Lenders afford borrowers the freedom to choose what to utilise as security for their personal loan, with vehicles such as cars, motorbikes or even boats eligible.
Applying for a quote with your lender to find out your indicative interest rate won’t affect your credit file or score, with this only coming after you agree to proceed with the loan.
You don’t have to stick to your repayment cycle as part of your personal loan agreement: make additional contributions and pay off your loan as quickly as you like to save money.
Not only can you access finance options without any of their primary fees charged, but any and all potential charges will be outlined prior to signing up for your loan.
Once you’ve completed your comparison with Savvy and basic online loan application, you can have funds directly transferred into your account in as little as 24 hours.
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?
How to maximise your personal loan borrowing power
Secure with a high-value asset
The amount you’re able to borrow can correlate to the value of the asset you’re using as security. This is because asset security is put in place as a safety blanket in the unlikely event that a borrower defaults on the loan, providing your lender with collateral to sell in order to recoup any funds lost in the process. As such, your loan will need to be of a roughly similar value to your security.
How to apply for a $100,000 personal loan
Questions about $100k personal loans in Australia answered
More about $100,000 personal loans
How should I compare different loan offers?
There are many ways you can go about comparing loan offers from lenders around Australia, so it’s important to be across these before applying for your finance deal. Fortunately, Savvy takes the guesswork out of comparing personal loans by laying out all the key information you need to make an educated decision on the best offer for your needs. Doing so is paramount, as comparing could be the difference between paying thousands of dollars more and saving that money. The key areas to consider when choosing the right personal loan for you are:
First of all, you’ll need to guarantee that the lender you’re applying to actually offers the type of loan you need. Because $100,000 as an amount is only obtainable via a secured personal loan, you’ll have to compare lenders who list this as a product they offer. Secured finance isn’t as common as unsecured finance, so you won’t have as great a selection of lenders to choose from as you would if you were to apply for this type of loan. However, what this does do is make your decision easier.
Next, you’ll have to determine whether you can borrow the amount you need. Even between lenders offering secured financing, not all will extend your potential borrowing power as high as $100,000. This may be capped at $70,000 to $80,000 in some cases, meaning you won’t be able to access $100,000 even if you’re earning comfortably enough to do so. Fortunately, comparing loans on this basis is usually very simple, as lenders will typically display the potential borrowing ranges prominently on their loan pages.
Being comfortable when it comes to repaying your debt is crucial and could go a long way towards securing swift approval on your loan application. As such, you should always look to lenders who offer your ideal term length so you can take as long as you need to pay off your debt. Not all financiers will offer seven-year loan terms, which is the term most borrowers would need to repay $100,000, so you should always look for those who can accommodate your needs in this respect.
When it comes to large loans like those of $100,000, interest becomes even more important to get right. Because it’s calculated based on the outstanding principal daily, you’re likely to pay a significant amount throughout your loan, regardless of how long your term is. With such large amounts, even small differences between rates can make a significant difference to the overall cost of your loan. For instance, a $100,000 loan repaid over seven years at 7.5% p.a. would cost an additional $28,842 in interest alone. However, opting for a loan with a rate of 6.5% p.a. instead would only cost $24,735, representing a saving of almost $4,000.
Additional charges are also worth considering when it comes to choosing your loan. Although these aren’t based on your principal, they can still add over $1,000 to the cost of your agreement, which is still money well worth saving. These primarily come in the form of establishment and ongoing costs. Establishment fees are charged at the start of your loan and can cost up to $595, while ongoing fees can set you back up to $10 each month. Across a seven-year term, a $10 monthly fee would total $840. However, many lenders charge only one or neither of these fees on their loans, so you should compare to find those who can help you save.
When it comes to a loan as large as this, you should afford yourself the ability to pay more than the required amount without being charged any fees for doing so. This is because making additional payments can save you a substantial amount of money over the life of your loan. For example, as mentioned, a $100,000 loan over seven years at 6.5% p.a. would set you back $24,375. However, if you were to pay an additional $100 each month, you’d save over $2,000 and shorten your required term by six months.
Any other useful features
On top of this, you might wish to gain access to further features to add flexibility to your repayments. One of these is a redraw facility, which can be useful for borrowers who plan on making additional repayments throughout their term. This enables you to withdraw any additional funds paid, should you need to, and use them for anything you need, saving on the hassle of applying for further financing. On top of this, you should be able to choose your preferred repayment schedule of either weekly, fortnightly or monthly to align with what suits your needs most.
How can I use a $100,000 personal loan?
The beauty of personal loans is that they’re able to be used for just about any purpose you may need, which sets them apart from other types of finance in which the funds can only be used for specific purposes. For example, a car loan must be used for the express purpose of purchasing a vehicle (as well as covering associated expenses), while business loans, although highly versatile, must be dedicated solely to your business’ expenses.
Some of the common reasons people look to take out large personal loans are:
- To consolidate outstanding debts from a variety of sources, such as high interest credit card debts, other personal loans and other household bills which are yet to be paid
- To cover the cost of renovating your home, such as adding an extension to your property or partially cover the cost of knocking down or rebuilding your home
- To pay for your dream wedding and any other associated costs around it, such as a dress, engagement ring, venue hire, catering and more
- To purchase an expensive vehicle such as a car, although you’re generally better off going for a formal car loan to help you save on interest
What documents will I need to supply as part of my loan application?
The specifics of the application process will vary depending on who you apply with, as the eligibility requirements will differ between lenders. However, for the most part, each financier will follow the same broad strokes when it comes to the documents they’ll need. When applying for a $100,000 personal loan, you’ll need to provide evidence of at least some of the following:
- Photo ID such as your passport or driver’s licence
- Two months’ worth of payslips
- 90 days’ worth of bank statements
- Two years’ worth of tax returns (if you’re self-employed)
- Your internet banking details
- Proof of employment (contract)
- Information on the asset to be used as security
- Details on any other assets you may own
- Details on other outstanding liabilities, such as other loan debts
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.