Affordable Loans
Find the most affordable personal loan offers available to you by comparing them all in one place with Savvy.
Fact checked
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?
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.
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.
Work out your income
For most people, this will be pretty straightforward – just add together how much you receive from your main income sources. If you have multiple income streams, it’s best to focus on just those that will help fund repayments.
Calculate your regular expenses
Think about what you usually spend your money on and tally up your average monthly expenses. It’s easy to miss some outgoings, so take a close look over your bank statements for the last few months. Key expenses you need to account for include:
- Rent or mortgage payments
- Your average weekly food bill (both groceries and eating out!)
- The cost of your utilities (including council rates, internet and phone plans, etc.)
- Entertainment expenses (this includes everything from your Netflix subscription to your gym membership)
- Insurance premiums (house, car, pet, etc.)
- Vehicle registration, maintenance and servicing, and running costs (e.g. fuel, tolls, etc.)
Work out how much you can put toward loan repayments
Now you know how much you have coming in and going out, you can work out what’s left. Just subtract your expenses from your income to see the surplus.
Check if the loan is affordable
Comparing how much you can afford to spend and the repayment amounts should tell you if the loan is affordable. If it’s not, you may need to look at a longer loan term or smaller loan amount.
Keep in mind that this is an average calculation that doesn’t take into account ad hoc or emergency expenses. As such, choosing to devote all of your additional income to loan repayments could create longer-term issues.
If possible, we also recommend you try out doing without your repayment amount before signing up to a loan. You can do this by setting this money aside for a few months and seeing how it affects your life. In addition to confirming that the loan is affordable, this should help lower the amount you need to borrow.
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.
