$7,000 Personal Loans
Compare and choose from $7,000 loan products from our panel of diverse lenders right here with Savvy.
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The features to enjoy on a $7,000 personal loan
Compare interest rates and save
You can find a great personal loan to suit your needs that doesn’t break the bank when it comes to interest and fees, with low-cost options cutting down on your overall spend.
Manageable repayments
With lower loan amounts come more manageable monthly repayments, which makes it easier for you to juggle your loan payments with other expenses.
Consolidate high-interest debt
One of the many possible uses for a personal loan is to consolidate smaller, high-interest expenses like credit card debts and avoid paying extortionate extra costs.
Pay your loan out early
We’re partnered with lenders who can give you the freedom to pay beyond the minimum, enabling you to save overall by shortening your term.
Choose your payment frequency
Borrowers get to decide whether to pay monthly, fortnightly or weekly based on their preferences and which option suits their income flow the most.
Money in your account in 24 hours
Part of the beauty of unsecured personal loans is the speed at which they’re processed, with instant, 60-second approvals and funds transferred inside 24 hours.
Types of personal loan
Why compare personal loans through Savvy?
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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.
The factors which affect your personal loan’s interest
Your credit score
Your credit score is perhaps the most important factor that impacts your interest rate. This is because it provides a clear indication of your success when it comes to paying debt in the past.
Lenders assess applications based on risk, so they’ll increase rates where they believe there may be a higher risk of someone defaulting (such as a bad credit borrower). Conversely, having a strong record in this area will help you secure a low rate.
Your past borrowing
An extension of your credit history as a factor is whether you have any history borrowing under similar circumstances in the past. If you’ve taken on, and successfully repaid, personal or car loans in the last few years, lenders will look more kindly on you when it comes to determining your interest rate.
If you have recent defaults on your file for similar loans, though, you won’t receive a positive rate and may be rejected altogether, even for bad credit loans.
Your employment and income
Borrowers who exhibit stability in relation to their employment are almost always more likely to receive a lower interest rate due to the fact that they’re seen as safer. This is especially the case for workers in this position who earn a comfortable living, as a consistent income stream that is unlikely to be interrupted by job loss is a far lower risk to a lender.
Full-time and permanent part-time employees often have access to the lowest rates.
Your loan term
Choosing the term over which you repay your personal loan will impact the overall amount you spend on interest. This is because the longer the time spent repaying your loan, the slower your interest amortises (reduces with your loan amount) which results in a greater time spent paying it.
For example, paying a $7,000 personal loan at 7.5% p.a. over one year instead of two would save you almost $300 in interest alone.
The type of rate you choose
Whether you select a fixed or variable interest rate will also impact what you end up spending on your loan. Fixed rates typically start at a lower base and stay the same across your loan, which protects you against any increase in interest during your term.
Variable rates are prone to fluctuation, so they can move up or down throughout your repayment period. It’s important to note, though, that loans of this type and size will, more often than not, come with fixed rates.
Frequently asked questions about $7,000 personal loans
More about $7,000 personal loans
How do I compare $7,000 personal loans?
There are many ways you can go about comparing different personal loan offers, which you can do right here with Savvy. We’re partnered with flexible lenders from around Australia to give you high-quality comparisons and provide you with all the key details you need to make an informed call on the best finance deal for your needs. You wouldn’t choose to buy the first car or house you saw, so why should personal loans be any different? The key areas to factor into your thinking are:
Repayment terms
For smaller loan sizes of $7,000, it’s important to be able to select your preferred repayment term, as it can be the difference between costing you and saving you hundreds of dollars. Not all lenders will allow you to take as little as one year to repay your debt, enforcing minimums of two to three years in some cases. For example, a $7,000 loan at 10% p.a. repaid over two years would cost you $752 in interest but opting for a one-year term for the same loan would only result in an interest spend of $385. Your repayments would be almost doubled each month, but it’ll save you in the long run.
Interest rates
Of course, the rate you’re offered on your loan should have a significant bearing on your decision, as it’s one of the two direct main cost factors in your finance deal. The higher your rate, the more you’ll be required to pay. Fortunately, it’s simple to compare loans based on their interest rates, as lenders always put this figure front and centre of their advertising. Calculating the cost of different personal loans, you can see a $7,000, two-year deal would cost almost $170 more with a 13% p.a. rate compared to 11% p.a.
Applicable fees
There are several fees which can apply to personal loans that are important to compare between different offers. While interest is still a major factor, fees can often be the greatest influence on the cost of a smaller loan such as a $7,000 finance deal. Establishment fees can cost up to $595, which is 8.5% of the loan cost in itself, while ongoing fees of up to $10 add up to $120 over the space of just 12 months. However, some lenders won’t charge one or both of these, so it’s crucial to look at this when comparing. Late fees of $15 to $35 will apply regardless, so you should always aim to avoid these for the sake of your hip pocket and credit score.
Comparison rates
If you want a more accurate picture of the cost of your loan beyond your interest rate alone, all loans also come with a comparison rate. This figure incorporates both interest and fees into one percentage to give you a more indicative reflection of how much you’ll be paying for your loan. While it includes fees like establishment and ongoing charges, conditional costs such as late or early repayment fees won’t factor into this calculation, as these are largely conditional and may not ever need to be charged.
Eligibility criteria
You should always ensure the lender you’re applying to has eligibility criteria which you’re able to satisfy. These are generally readily available on their sites, so you should review them or get in touch with lenders if you’re unsure of whether you qualify for financing. While these points differ, the general criteria you’ll have to meet are:
- You must be at least 18 years old
- You must be an Australian citizen, permanent resident or accepted visa holder
- You must be holding stable employment and earning at least $20,000 p.a. from consistent sources
- You must have a strong credit history without any prior defaults or bankruptcies
Additional repayments
Having the freedom to make additional payments is incredibly valuable on personal loans, as it’s a way of helping you pay your agreement off sooner and save money in the process. Even paying $50 extra per month can make a difference, as it could save you $131 and shorten your term by three months on a $7,000, two-year loan at 12% p.a. Some lenders will charge you an early repayment fee for doing so, though, so you should always make sure you don’t cop a substantial fee in the process and compare lenders thoroughly beforehand.
Other features
There are other useful features which can come with personal loans, too. If you plan on making additional payments, you may want the flexibility and security of a redraw facility to give you access to those additional funds should you need them down the track. This saves on the hassle associated with looking for another finance deal, although withdrawing from your loan will undo any work done to shorten your term and save to an extent. On top of this, you should always keep an eye out for lenders who can accommodate your preferred payment frequency of either monthly, fortnightly or weekly.
How can I save on my $7,000 personal loan?
There are many ways you can go about reducing your finance bill even when it comes to a $7,000 loan. Some of the main ways to do this are:
- Make additional repayments: by contributing more than the required amount each week, fortnight or month, you can reduce your overall loan term and the amount of interest and fees you pay overall. For instance, by paying $75 extra each month on a $7,000, two-year loan at 10% p.a., you’d save over $150 and trim your term length by four months.
- Select a short loan term: the shorter your loan term, the less you’ll pay in interest and fees overall. This is because interest is calculated based on your outstanding principal, meaning the quicker your debt falls, the quicker the amount of interest you’ll be liable to pay will decrease in equal measure. If your loan comes with monthly fees, a shorter term will automatically save you compared to long-term finance.
- Compare your options with Savvy: it’s crucial to consider as many offers and lenders as you can before committing to a particular product or service. By comparing your options from a range of online Australian lenders, you can be more confident in making an informed call on which one is the best for your needs. Find the lender with the lowest rate and fees, suitable loan terms and any other added features which are important to you.
Will I need to provide security for my $7,000 personal loan?
No – there’s no need for you to put up a valuable asset as collateral for your loan when taking out financing as small as $7,000. It isn’t required up to $75,000, with lenders now offering large unsecured personal loans to borrowers who either can’t, or don’t wish to, provide any security as part of their agreement. The advantage of these loans is that they’re more widely available from a greater number of lenders and can be processed more quickly than secured finance.
However, there are several distinct benefits to offering up an asset like your car as security, the most important of which is that they typically come with lower rates and fees than unsecured loans. This can save you more than $100 overall in some cases, depending on your interest rate and loan term. However, it’s important to note that, in most cases, you won’t be able to take out a $7,000 secured loan. These are typically capped at a minimum of $15,000 to $20,000, making your decision simpler as a borrower.
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.
