Personal Loan Broker

Finding the right personal loan can be hard, so a personal loan broker could be an option for you.

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on June 28th, 2024       

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With countless personal loan options on the market, finding the right one can be overwhelming and time-consuming. One solution is to use a personal loan broker. Learn about their role and the benefits and drawbacks of using their services to help you make informed decision when looking for a personal loan.

What are personal loan brokers?

Personal loan brokers are professionals who help those looking for a personal loan find the best deal to suit their needs. Like mortgage brokers, they act as intermediaries, working with a panel of lenders to find finance solutions for their clients.

When choosing a personal loan finance broker, there are a few things to be aware of:

  • Lending panel: brokers partner with a range of lenders, but not every lender on the market will be included in their panel. Choosing a broker accredited with a wide range of lenders gives you the widest selection of personal loans, thus maximising your chances of finding an offer that suits your personal circumstances.
  • Fees: personal loan brokers will typically charge you for their services with a brokering fee. This will usually be a small percentage of the total loan amount (less than 5%) or a set sum but, depending on the size of your loan, this could be hundreds of dollars.
  • Commission: lenders will often pay brokers a commission, which is a fee for successfully matching a borrower with the lender. Borrowers should be aware of the commission brokers earn because it can impact the recommendations brokers make.

How do personal loan brokers compare to getting my loan direct?

The primary alternative to using a personal loan broker is searching for a loan yourself and applying directly to the lender. This has both advantages and drawbacks.

If you do it yourself, you have complete control over the process. You can look at any lender you choose and make all decisions independently. On top of this, you won’t have to pay a fee when applying, which can save a substantial upfront cost.

However, it is important to read a lender’s eligibility criteria before you apply and ensure you meet their requirements, as applying and being rejected can damage your credit score. Using a broker can help you avoid this scenario, as they typically pre-screen lenders to match you with ones most likely to approve your application. You will also benefit from their expertise and guidance, and they may be able to find better deals than you would on your own.

One of the biggest advantages of using a broker is the time and effort saved in comparing offers – but this is still possible on your own. With Savvy’s online comparison service, you can compare interest rates, fees and other important factors to find a range of offers suited to your circumstances, taking much of the guesswork out of applying for a loan.

How do I find the best personal loan broker?

There are a number of key areas you should look at when comparing personal loan brokers. It’s important to choose one that aligns most closely with your needs and can offer you the best personal loan deals. You should consider the following:

Suite of lenders available

The number of lenders your personal loan broker is accredited with is perhaps the most important element in choosing the best available option for you. The more lenders that your personal loan broker is accredited with, the more choice you’ll have for personal financing and, as such, the greater the chance of finding the perfect loan to suit your needs. For example, a broker accredited with five lenders is less likely to be able to find you the best deal than one with more than ten lenders.

Online or in person

Most personal loan brokers operate in the online space, which makes finding one much easier and more convenient overall. An online broker sidesteps the need for appointments to be made and physical documents to be sent to an office; rather, everything is conducted in a safe online space, and you can attend to it whenever you’re free. However, there are still face-to-face brokers available for those who prefer this setup. Your preference in this regard will inform your ultimate decision on which personal loan broker to choose.

Processing speed

You may want or need your funds turned around quickly to access your personal financing sooner, so you could look to personal loan finance brokers who can do that. Each broker will be different in terms of how quickly they can get your loan approved, so you should do your research in this area. Typically, online brokers are able to get loans approved at a faster rate than those dealing with physical documentation.

The pros and cons of using a personal loan broker



Personal finance brokers handle much of the legwork, saving you time and effort in searching for the best loan for your needs.

Industry experts

Brokers have extensive personal loan knowledge and experience, enabling them to provide valuable insights and advice.

Tailored options

Personal loan brokers can offer personalised recommendations based on your specific situation and preferences.

Protect your credit score

By identifying suitable loans, brokers can help you avoid multiple credit inquiries, which can negatively impact your credit score.


Extra fees

Brokers often charge additional fees, which can increase the overall cost of securing a personal loan.

No guarantees

Even with the help of a broker, there is no guarantee that you will get the best rates or that your application will be approved.

Limited lender choice

Brokers may only work with a select group of lenders, potentially limiting your options when looking for a loan.

Commission prioritised

Some brokers may prioritise products that offer higher commissions, which might not always align with your best interests.

Frequently asked personal loan broker questions

How much can I borrow with a personal loan broker?

Your borrowing power is determined by a variety of factors, including your income and expenses, existing debts, loan security and the type of lender you go with. However, while personal loans can reach up to $50,000, some brokers will implement a higher minimum than lenders of up to $5,000.

Can I get a personal loan broker if I have bad credit?

Yes, you can – applying through a broker can help increase your chances of approval for a bad credit personal loan. This is because, as previously mentioned, they’ll know the requirements for bad credit customers when it comes to applying for your personal loan. This can also save you from lowering your credit score further with an unsuccessful application.

Do personal loan brokers offer all types of personal loans?

Not always – each personal loan broker is different in what they can offer you as a customer. For example, some brokers may only offer personal loans to customers with a good credit score, ruling out those with an imperfect one. Make sure that you do your research into the types of loans that your potential personal loan brokers offer.

Will a personal loan broker help me get approved if I’m self-employed?

Yes – like bad credit customers, self-employed workers can sometimes have a hard time getting approved for financing. Going through a broker who is aware of the eligibility criteria and has specialist lenders in their suite catered to your situation is the ideal scenario for a personal loan borrower who seeks out a personal loan broker.

Can I still find great deals without a personal loan broker?

Absolutely – researching through rate tables and comparing your options is a great way to find the best deals on the market directly. Also, if you’re looking for a loan with your current financial institution, you might be able to negotiate better terms if you’ve been a customer for a long period.

Is it better to get an unsecured or secured personal loan with a broker?

Unsecured personal loans are faster and easier to get approval for. They’re a source of financing for those who either don’t want to secure their loan with an asset or don’t have an asset to secure their loan with. However, listing an asset as collateral can help reduce your interest rates and fees and increase the amount you’re able to borrow.

Helpful personal loan guides