$5,000 Personal Loan

Name: $5,000 Personal Loan
Creator: Savvy
Published: 2021-03-31T13:52:51+10:30

Home > Personal Loans > $5,000 Personal Loan

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Written by , updated on October 4th, 2023

The features and benefits of $5,000 personal loans

Compare interest rates and save

Even on a $5,000 personal loan, you can secure a low rate for yourself and lock it in for the remainder of your term to potentially save money overall.

Choose your loan term

A large part of your personal loan application is settling on the length of time over which to repay, ranging from as few as one year up to four or five.

Pay less each month

Because of the lower loan amount, you won’t be required to pay as much each month, nor will you accrue as much in interest as you would on a larger loan.

Funds transferred in 24 hours

From the point of submitting your application to receiving your money directly in your account can take as little as 24 hours, with 60-second approvals beforehand.

Diverse income accepted

You can be approved for personal financing no matter whether you work full-time, part-time, casually, are self-employed or receive Centrelink benefits.

Bad credit options available

A good credit score isn’t a prerequisite for personal loan approval, either; we’re partnered with flexible lenders who can approve $5,000 to bad credit borrowers.

Types of personal loan

Unsecured personal loans

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

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 rate personal loans

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 rate personal loans

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.

Debt consolidation loans

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.

Travel loans

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.

Wedding loans

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.

Renovation loans

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.

Self-employed loans

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.

Student & education loans

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.

Green loans

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?

100% free

There's no need to worry about forking out to compare offers. Our service is free, so you can come back whenever you like.

Paperless applications

You won't need to worry about sifting through documents and visiting the post office, as they can all be submitted online.

Reputable lending partners

We've partnered with personal loan companies you can trust to ensure your comparison is a high-quality one.

How to save on your $5,000 personal loan

Increase your credit rating

Make additional payments

Select a shorter term

Apply with your partner

Compare loans with low or no fees

Increase your credit rating

Make additional payments

Select a shorter term

Apply with your partner

Compare loans with low or no fees

$5,000 personal loan queries answered

Which documents will I need to be approved?

As part of your personal loan application, you’ll need to submit the following documents:

Photo ID (passport and/or driver’s licence)
Your last two payslips
90 days of bank statements and your employment contract may be required
Information on your assets and liabilities
Online banking details

Do I need to pay a deposit on my loan?

No – personal loans come with no obligation to pay a deposit, with 100% financing available up to your maximum borrowing capacity. If you need a loan to pay for a $5,000 medical procedure, for instance, you can be approved for the full amount provided you can comfortably afford to repay it.

Will I be required to provide an asset for security?

No – we’re partnered with online lenders who offer unsecured personal loans, which carry no such asset requirement. These enable you to be approved quickly and easily for your personal loan and come with no restrictions that a secured loan might if it were secured by the asset being purchased with the loan. You can choose to go with a secured loan instead, which comes with the advantage of a lower interest rate.

Can I be approved for a $5,000 loan if I’m unemployed?

Probably not – a qualification point for just about every personal loan is that you must be employed to be eligible. There are some instances where you might be approved without actually having a job, such as if you’re earning income through superannuation or investment property, but this isn’t the case most of the time. If you’re living on unemployment benefits, for instance, your personal loan application won’t be accepted.

Can a guarantor help me get approved?

Yes – if your borrowing profile isn’t the strongest, applying with a guarantor can be a great way to maximise your chances of approval (as well as reduce your interest rate). This is because such an arrangement involves bringing on a third party in a stronger financial position, such as your parent, to guarantee the payment of your loan no matter whether you’re able to do so on your own. If you can stay on top of your repayments, your guarantor will never be involved in the loan at all.

What can I use a $5,000 personal loan for?

Whatever you need $5,000 for, a personal loan may be suitable.

For example, if you have an unexpected expense – like a medical bill or urgent car repairs – a loan could help. Similarly, if you are planning a holiday or home renovation, a personal loan could help pay for it. Even moving can be made easier with a $5,000 personal loan, which can be put toward buying your jewellery or engagement ring, rental bond or furniture.

However, its’s worth noting that there are a few things that a personal loan cannot be used for. Specifically, they can’t be put toward:

Investing in the stock market
Settling fines or court-ordered payments
Purchasing property or land
Business expenses

Should I take out a small personal loan instead?

You could – however, this depends on what you want out of your loan. Small loans are on offer for up to $5,000 over terms between 16 days and two years. Under this type of finance, you’ll be charged a $400 establishment fee and service fees each month which equal 48% of your loan amount over the course of a year. They also come without any fees relating to repaying your loan early. However, depending on your loan conditions, this may work out to be more expensive than a $5,000 personal loan.