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Best Personal Loans
Compare a range of personal loans from trusted Australian lenders to help you find the best available offer for your needs with Savvy.
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The features and benefits of Savvy's personal loans
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The best loans start with affordable interest, with rates beginning at basement levels to save you a tremendous amount over the course of your loan.
Repayment terms up to seven years
Top offers will also afford borrowers the option to choose a wide range of potential terms over which to repay their loan, from as short as one year up to seven.
Amounts available up to $75,000
Personal loans come with great flexibility when it comes to the amount you can borrow, with funds available up to a maximum of $75,000 to suit a wide range of needs.
Free early repayments
Speaking of flexibility, having the freedom to contribute above and beyond the minimum required amount each instalment can help you slash the cost of your loan.
Customisable pay schedule
Borrowers can also generally choose the frequency at which they contribute to their loan amount, either on a monthly, fortnightly or weekly basis.
Personal loans without any security
There’s no obligation for you to supply any collateral against your loan if you don’t want to, or can’t, making unsecured loans a great and accessible option for borrowers.
Choice of fixed or variable interest
You can choose between the stability and certainty of fixed rates and the potential for savings on a variable rate when comparing different personal loan offers.
Rapid approval and transfer
All of this is able to be achieved and completed at a breakneck pace, with instant outcomes in 60 seconds and funds sent to your account in 24 hours.
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.
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How do I choose the best personal loan?
Work out how much you need
There are many reasons you may need a personal loan; like buying a car, consolidating debts, or a home renovation. Being clear about what you need the loan for will help you calculate how much you need to borrow. It should also assist with the application process as lenders will want to know what the money is for.
Failing to repay your loan can have long lasting effects, including limiting your ability to get credit in the future. As such, it’s critical you also make sure you will be able to make the repayments. Do this by working out how much of your monthly income you could comfortably do without.
Work out how much you can borrow
Lenders will have set borrowing limits and you should make sure the amount you require falls within these. They will also assess your lending capacity based on a number of factors, like your income and expenses. If they do not believe you can afford the repayments for the amount you request, they will reject your application.
To avoid this, use a borrowing power calculator to work out how much a lender is likely to give you.
You should also check your credit rating. Lenders will use this to decide if they should give you a loan and how much they should give you.
Work out any additional features you want
Do you want to be able to make extra repayments or pay off your loan early? Do you want to be able to redraw from your loan? Or do you just want the lowest possible payments?
Different personal loans offer different features. Usually these will come with higher fees or interest rates, so think carefully about what you actually need.
Choose the type of lender you want
Not all personal loan providers are the same. Some lenders are larger and provide all the services any customer could need. Others are smaller and keep the costs down by focusing on specific customer types.
The main lender types are:
- Traditional banks: These are the big names that most people know. You probably already have an account with one of them, which can make getting a loan easier. However, this convenience comes at a cost, as these lenders usually charge higher fees.
- Credit unions: These are similar to traditional banks but are ‘membership based’. As such, they generally offer great additional features, like a redraw function. However, you will need to become a member first, usually by opening a bank account.
- Online lenders: These are lenders that operate online only. They are usually cheaper than other lenders. However, the lower fees can come at the cost of customer service.
- Bad credit lenders: These are companies that specialise in helping people who would struggle to get a loan from other types of lenders. However, this flexibility comes at a price and these lenders consistently charge the highest fees and interest rates.
Consider comparison rates
Once you know exactly what you’re looking for and understand how does a personal loan works, check out the loans available to you. Savvy brings together offers from a range of reputable lenders and help you get approved easy for your personal loan. You can also use our filters to narrow down the list to the best personal loans for your specific circumstances.
Once you have a shortlist of suitable loans, choose the one with the lowest comparison rate.
If there are features you want, but don’t actually need, see how much they will cost you. You can check this by comparing the lowest comparison rates for loans with, and without, those features. You can then make the call whether it’s worth the extra expense.
Frequently asked questions about the best personal loans
- First of all, all applicants will need to be at least 18 years of age at the time of applying.
- When it comes to applying for the personal loans on the market, you’ll need to hold stable, full-time employment with a comfortable salary well beyond the minimum of around $20,000.
- Additionally, you’ll need a strong credit history (particularly with similar financing repaid in the past) and no record of defaults or bankruptcy.
There’s essentially no limit to how you can make use of your personal loan funds. That’s because they’re unsecured (for the most part) and are versatile by design. Some of the ways you can potentially spend your personal loan funds include:
- Renovating your home or building a swimming pool
- Medical expenses and other procedures like cosmetic and laser eye surgery
- To further your career and education
- To pay for your wedding and honeymoon
Bad credit as a borrower comes with far greater restrictions on the types of loans you’re eligible to apply for. This primarily manifests itself in three ways: capping your borrowing power at $10,000 to $12,000, restricting the maximum loan length to two to three years and setting your interest at a much higher rate. Personal loans are still a viable option for bad credit borrowers with a partner who need funds, but they’re not as flexible as standard loans.
You’ll need to present a combination of the following documents as part of your personal finance application:
- Photo ID (driver’s licence and/or passport)
- Your last two payslips (plus potentially your employment contract and/or 90 days of bank statements
- Your online banking details
- Your current asset and liability details
Two ways that you can look to slash your interest rate are by submitting a joint application or applying with a guarantor. Joint personal finance, whereby you combine your application with another person such as your partner, comes with lower interest thanks to the shared responsibility of repaying it with two incomes instead of one. Guarantors, who agree to take over a loan should the borrower become unable to, add a significant layer of security to personal loans and are rewarded with significantly lower rates.
A personal loan’s comparison rate is a figure which incorporates both its interest and set fees such as ongoing and establishment costs. This gives you a more accurate indication of the cost of the loan, rather than solely relying on its interest rate. You should always compare loans based on comparison rates for this reason, among the other factors which will influence your decision.
Yes – many personal loan financiers offer deals which come with redraw facilities. This is a feature which enables borrowers to withdraw additional funds which have been paid towards their loan debt, meaning they won’t be required to apply for another loan to access the funds they need. It’s important to note, though, that redrawing your funds can lengthen your loan term and result in you paying more overall.
A green loan is a type of loan designed for the purchase or installation of environmentally friendly goods and systems. They typically offer a rate discount as part of the deal to encourage people to improve their “green” habits to help the environment. This may include energy-efficient appliances, solar panels, water conservation systems or even bicycles. Not all lenders offer green loans, though, so you should look to compare those who do if you need a loan for this purpose.
More about the best personal loans and how to find them
How do I choose the best personal loan for my needs?
When finding the best personal loan for you, it’s important to approach the process with a clear understanding of your needs. Applying blindly or without knowing how a personal loan truly works could leave you short on the funds you require or with a greater loan debt than you needed to take out. Consider the following steps to help you pick out your ideal personal loan.
Work out how much you need to borrow and what you can afford
Before all else, you should determine why you need your personal loan and the amount required to cover whatever costs need covering. You may wish to take out a loan to consolidate a range of outstanding debts, renovate your home or simply help you pay for your next family holiday.
The second step here is to crunch the numbers and work out what you can actually afford to take on as a borrower. This calculation can include factors such as your income, expenses, employment, credit score and more in coming up with an approximate number you should be able to comfortably support. You can use Savvy’s borrowing power calculator to give you an estimate of what lenders might be able to approve you for if you were to apply.
With this in mind, you’ll be able to enter the comparison process with more clarity on which lenders are suitable for you based on their potential borrowing ranges. For instance, if you were looking to take out a smaller loan of just $2,000, you’d be able to immediately rule out the lenders who set their minimum amounts at $5,000 or more. The same applies to borrowers who wish to borrow more than $50,000, as only some lenders allow applicants to access that much money.
Decide what type of personal loan you want
There are several types of personal loan, so you should always have a clear understanding of the differences between them. Knowing how they differ from one another will help you decide which is the most suitable for you. The main types to consider are:
- Unsecured personal loans are the most basic and common type of personal finance. You can simply apply for a loan without the need to supply any assets or collateral and generally borrow up to as much as $75,000. Because of the lack of security, these loans are typically faster to be approved and financed, although they tend to come with higher interest rates and fees.
- Secured personal loans do come with the requirement for an asset to be attached to the loan as collateral, meaning this will be acquired and sold to recoup funds in the event you become unable to pay off the loan. This is very much a last resort, though. These loans are characterised by cheaper rates and fees and expanded borrowing ranges up to $100,000, although the time taken to process them may be greater.
- Personal lines of credit differ from standard loans in that you’re approved to withdraw funds up to a set limit whenever you like, rather than receiving and managing a lump sum. You’ll only be required to pay interest on the balance used, albeit often at a higher rate than usual and with other fees for maintaining the account. They also don’t tend to come on set terms, meaning they can be kept open on a revolving basis as long as they’re viable.
Think about the type of interest rate you’d like
There are two types of interest rate which can apply to personal loans: fixed and variable rates.
Fixed interest is the most common on personal loans, locking your rate in from the start and protecting you from any rises in your lender’s rate across your term. They also allow for more accurate and stable budgeting around your instalments.
On the other hand, variable rates can change from month to month in line with the RBA cash rate and how your lender decides to respond to it. While they can allow for savings if rates fall, you may end up paying more and not have the ability to budget as well.
Consider different types of lenders
While it’s most important to invest time and effort comparing specific deals, you might also have a preference as to the lender you decide to go with for your loan. Some of the key differences between different types of lenders are as follows:
Banks: the biggest lenders on the market. Banks can provide a wide range of services across all sorts of product areas and some of the bigger ones have advanced, robust customer support systems. However, they can often be the most expensive in terms of personal loan rates and fees, which is one of the most important factors to consider.
Credit unions and building societies: customer-owned or mutual financial institutions often serve as a cheaper alternative to banks, as they come without any need to pass profits onto shareholders (given that they don’t have any). While you still may have branch access, it’s likely to be less than that of a bank and services are also more limited.
Online lenders: the newest entrants into the marketplace, online non-bank financiers have set out to make a difference and offer the most affordable deals to Australians. Because they exist wholly online, there’s never any need for you to visit any branches (which is a negative if you prefer physical locations) with advanced online infrastructures to rival banks in some cases and often come with less stringent lending criteria compared to the banks.
Compare loans with Savvy
Of course, perhaps the most effective way to boost your chances of finding the best loan for your needs is by comparing with Savvy. We’re partnered with reputable lenders from around the country to help you conduct high-quality comparisons and learn at a glance what each financier can offer you as a customer. It’s never ideal to dive into the application process blindly and not know which lender is the perfect option for you, as doing so could potentially save you hundreds of dollars, if not more.
How do I compare personal loan offers?
Interest rates
Perhaps the easiest feature of any personal loan to compare is the interest rate. This is the figure most prominently displayed on lender sites and is very much a selling point for loans, given the competitive nature of the market. In truth, it’s important to find as low an interest rate as possible, as these are the most substantial contributors to the cost of your loan. It’s not the only feature to compare, but it’s a mightily important one.
Fees
Another way to distinguish the best personal loans from the rest is by assessing the fees associated with each personal loan. These can also set you back a considerable amount if you’re not careful, so comparing is crucial here. The fees you’re likely to find on your loan, and their typical price ranges, are as follows:
- Ongoing fees: $0 to $10
- Establishment fee: $0 to $595
- Late payment fees: $15 to $35
Repayment flexibility
One of the aspects you should always look for is whether your loan affords you the freedom to make additional repayments free of charge. As mentioned earlier, you can save a tremendous amount of money overall by making extra contributions to your loan. For instance, on a $20,000, three-year personal loan at 7.5% p.a., you can save over $350 in interest alone and shorten your term by five months by paying $100 extra each month.
Available loan terms
A major part of finding the best personal loan for you is having access to a loan term that suits your repayment needs. While loans range in length from one to seven years, not all lenders will offer terms as short or long as that. If you only need a small loan and wish to repay it as quickly as possible, for example, you should find and compare lenders who offer one-year terms. You should always compare loans to find those which enable you to pay at your speed.
Minimum and maximum amount
Similarly, lenders don’t always offer the same amount for personal loans. While potential amounts range from $2,000 to $75,000, what you’ll need to ensure as a borrower is that the lender you choose offers the amount you’re looking for, which is also simple enough to do when comparing. This is especially the case at the lower end of the scale, as many lenders set their minimum loan amount at $5,000, ruling out any potential smaller loans. Borrowers will need to be mindful of this when comparing personal loans with Savvy.
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.