The key features and benefits of affordable personal loans
With competitive rates available for both secured and unsecured loans, you can lock your rate in at a low level for your whole finance deal.
With the choice between secured and unsecured personal loans, you’re given an avenue to further reduce the rate and fees on your finance deal.
You have the option to shorten your term down to as little as one year to help minimise the cost of your loan, while longer terms up to seven years are still available.
You’ll be able to compare affordable offers of a wide range of sizes, with amounts available for as little as $2,000 all the way up to $75,000.
On top of the already affordable fees present on personal loans, some of our lenders don’t charge establishment or ongoing fees at all, which can save hundreds.
Most personal loan financiers will also enable you to contribute extra payments above the minimum and pay out your loan early without charging any extra fees.
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?
Affordable personal loans explained
How do I find and compare affordable personal loans?
Before looking at loan affordability, you should consider the suitability of various personal loan options. This will be based on what you need the money for and the additional features you require. Having a clear view of the type of loan you require will help you narrow down your options.
Once you have a shortlist of suitable loans, you can look at which provides the best deal. One of the best ways to do this is to look at the comparison rate. While most lenders promote their interest rate, that is only part of the cost of the loan. In addition to interest, you may also need to pay a range of fees throughout the life of your loan. These charges vary from lender to lender and sometimes a lower interest rate comes with higher fees.
However, the comparison rate provides an indication of the total cost of the loan. It combines both the interest rate and the main fees and represents it as an annual percentage. As such, it’s a much better measure of the actual affordability of each loan.
What fees and charges should I expect to pay on an affordable personal loan?
Every lender has their own fee structure and will charge different amounts for different things. However, there are some common fees that apply to most loans:
- Interest – every loan will incur some form of interest, which is the main cost of borrowing money.
- Establishment fee – most lenders will charge a one-off fee for setting up your loan contract and account.
- Administration fees – most lenders will charge a regular fee for the ongoing maintenance of your loan.
- Printing fee – with most documentation now electronic, most lenders charge for providing hard copies of any correspondence (e.g. statements, contracts, etc.)
- Late payment and dishonour charges – if you fail to meet your repayment schedule, most lenders will apply an additional fee to your account.
- Early payout fees – if you don’t have flexible payments, most lenders will charge you extra for paying off your loan ahead of schedule.
How do I work out if a loan is affordable for me?
Work out what your repayments will be
Savvy’s easy loan comparison tool can help you with this, giving you both the comparison rate and monthly repayment amount. Just select your desired loan amount and preferred loan term and it will calculate everything for you.
More information on finding an affordable personal loan
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.