Affordable Loans

Find the most affordable personal loan offers available to you by comparing them all in one place with Savvy.

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, updated on October 4th, 2023       

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The key features and benefits of affordable personal loans

Compare rates and save

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.

Optional security available

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.

Short and long terms available

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.

Borrow what you need

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.

No-fee loan products

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.

Pay your loan out early

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

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?

More information on finding an affordable personal loan

Will paying more each month make my loan more affordable overall?

Yes – if you have a loan without any penalties for early repayments, you can cut down on the overall cost of financing by paying above the minimum required amount. This will help you save by reducing the overall cost of interest on your loan, more sharply reducing your loan's principal and potentially cutting down on interest by hundreds of dollars.

What makes a loan affordable?

In the broadest sense, a loan is affordable if you can comfortably meet the repayment schedule. However, what this practically means varies greatly from person to person and depends on your financial situation. As such, it’s usually more valuable to look at the actual cost of the loan. 

When most people talk about an affordable loan, they mean one with a low interest rate and minimal fees. In this sense, affordability is somewhat of a relative term and can be a good guide when choosing a loan. Considering which loan is most affordable can help you pick the best offer available. 

Can I negotiate a more affordable loan?

Potentially – some lenders may be open to waiving some fees or agreeing a reduced interest rate. This is usually used as a tactic to increase loyalty and retain existing customers. However, the personal loan process is highly streamlined and automated for many online lenders, so you may not be able to negotiate in all cases.

Are there loans without fees or interest?

Yes – some lenders offer to waive some of their main fees for some of their loans. However, when assessing how affordable a loan is, you should always consider the total cost. As suchyou should always check the interest rate of low or no fee loans, as they are often higher.  

Does my credit score impact how affordable my loan is?

Yes – when a lender checks your credit score, they are looking to see how much of a financial risk you are. As such, having a great credit rating (800+ is considered excellent) makes you a more attractive lending prospect. This suggests you are extremely financial responsible, to which most lenders will reward you with lower rates and fees. 

Are there affordable loans for those with poor credit scores?

A lower credit rating suggests to a lender that you have had past financial issues. As such, they will treat you as more of a financial risk and generally charge higher interest rates and fees. That being said, some lenders have a more reasonable fee structure than others, so it’s worth doing your research as there will be some more affordable loan options with bad credit. 

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.