Best personal loans
When looking for a personal loan, it’s crucial that you compare the best offers available to net yourself a great deal on your financing. At Savvy, you can start comparing personal loans in all the key areas that matter to you today and have your financing approved in as few as 24 hours.
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|Wisr Unsecured Personal Loan|
Borrow between $5,000 and $64,000 with great low rates for excellent credit. Get a personalised rate estimate in 2 minutes that won't impact your credit score.More details
|Plenti Unsecured Personal Loan (Excellent Credit)|
Apply for an unsecured personal loan and enjoy low rates for excellent credit. With no early repayment or exit fees, there’s a lot to love about this loan.More details
|OurMoneyMarket Unsecured Personal Loan|
Apply for an unsecured personal loan between $2001 to $75,000 for a variety of loan purposes. Get a personalised rate estimate in minutes without impact your credit score.More details
|Harmoney Unsecured Personal Loan|
Borrow up to $70,000 with personalised rates and repay over 3,5 or 7 years loan terms.More details
Disclaimer: A comparison rate indicates the true cost of a loan. The comparison rate displayed for this advertiser is calculated based on a loan amount of $30,000 over 5 years and represents the effective rate on the loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
The features and benefits of Savvy's personal loans
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.
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.
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.
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.
Borrowers can also generally choose the frequency at which they contribute to their loan amount, either on a monthly, fortnightly or weekly basis.
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.
Why Australians choose Savvy to compare the best personal loans
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.
Frequently asked questions about the best personal loans
More about the best personal loans and how to find them
Market update for personal loans: August 2022
With the Reserve Bank of Australia (RBA) increasing the national cash rate further as we enter the month of August, it’s crucial to compare your options with Savvy to help you find the lowest rate and most affordable personal loan available to you.
This increase on the previous rate of 1.35% to 1.85% won’t impact those who are currently paying off their fixed rate agreement, as they’re protected from any interest hikes over their loan term but is likely to affect those in the process of paying off their variable rate loans, as well as those who are currently looking at personal finance but are yet to secure their fixed rate deal.
The best way to combat the rise in interest rates is to consider your options as thoroughly as possible and take the time to find the lowest rates and fees available on the market, which you can do right here with Savvy thanks to our panel of reputable lending partners from across Australia.
Meanwhile, the near-record highs reached in May of this year in terms of new fixed term loan commitments were backed up by one of the biggest drop-offs in recent memory in June, according to the most recent lending indicators from the Australian Bureau of Statistics (ABS).
The value of new commitments fell by 15.2% to $1.95 billion compared to $2.30 billion in the previous month, representing the second-largest decrease in new monthly commitments from one month to another in the current ABS series behind April of 2020.
New loans for personal investment (37.1%) and vehicle purchase (14.4%) both fell substantially after increases across May, although finance taken out for the purpose of funding travel and holidays continued to increase ($0.027 billion to $0.032 billion).
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?
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.
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
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.