Cheap Personal Loans

Savvy has compared personal loans to help you make the right choice.

Cheap Personal Loans

If you’re searching for a cheap personal loan, then the key is to find a lender that has the balance between a low rate and fee structure.

While the headline interest rate is the major surface factor to consider, it’s not the only one that you need to look at. The total cost of a personal loan also includes any fees or charges found within the loan’s fine print and must be calculated before a final decision is made.

Within this guide, we’ve gone over all of the considerations you must take into account when comparing cheap personal loans. Let’s find the right one for you.

What should you look for to find a cheap personal loan?

The two main factors that you have to take into account when looking for a cheap personal loan, are interest rates and any associated fees or charges.

Knowing what to look for in a cheap personal loan can save you both time and money so before beginning the application process, ensure you’ve done the math totalling each.

Interest Rates: The main factor that determines how cheap a personal loan ultimately is, comes down to the interest rate on repayments.

Headline Rate: The interest rate you’re charged by the lender for the life of the loan. The headline rate does not take extra fees and charges into consideration.

Comparison Rate: The interest rate you’re charged by the lender, with all fees and charges included. The comparison rate better reflects the true cost of the loan.


The second factor which can often hide the true total cost of a personal loan, is any fees or charges that are associated with the deal.

Some of the most common fees and charges that you need to look out for include:

Establishment fees: The fee charged when you first take out a personal loan. Often charged when the loan is initially deposited into your account.

Approval fees: Any fees paid upfront when you first receive approval for your personal loan.

Annual fees: A yearly fee that is applied to the loan at a set month. Often charged at the end of the financial year.

Late/early repayment fees: Fees for paying back your loan either before or after you’re legally obliged to.

Administration fees: Ongoing fees charged for the maintenance of the loan. These can be charged monthly, quarterly or yearly.

Finding a loan where the balance between interest rates and fees works in your favour, is imperative when you’re trying to obtain a cheap personal loan.

What else makes a personal loan cheap?

While the interest rates and fees associated with personal loans are the most important, there are some further considerations to be made.

If you really want to find a cheap personal loan, you’re going to have to find one that works best for your specific circumstances. When doing so, considering the following factors will help:

How much you can borrow: Always check how much you’re allowed to borrow at the advertised interest rate. Rates may get higher or lower depending on whether you reach minimums or exceed maximums.

Whether you require a secured or unsecured loan: A secured loan will almost always have a lower interest rate than an unsecured personal loan. Keep this in mind when comparing loans and providers.

How your interest is calculated: Will your loan feature a fixed or variable interest rate? Choosing the right one could keep the total cost of your personal loan down.

The flexibility of repayments: If you plan on repaying your loan early, ensure you won’t be penalised for doing so. You’re not going to plan on missing a repayment, but late fees are also worth knowing just in case.

What you’ll need to get a cheap personal loan?

To be able to apply for any personal loan, you’re going to have to meet the eligibility criteria laid out by the lender.

To be eligible for a personal loan in Australia generally requires:

  • You’re at least 18 years old.
  • You’re an Australian citizen, permanent resident, or hold the required visa.
  • Have a verifiable income.

To be able to prove the above, you’re going to need the following:

  • Drivers license/passport as proof of identity.
  • Income statements such as your payslips.
  • If retired, you’ll need to prove income from investments. If self-employed, you’ll need your business tax returns.

If your application for a personal loan is approved and you’ve accepted the terms laid out in the offer, you’ll usually receive your loan amount credited on the same day.

Just remember that the cheapest personal loan on the surface, isn’t always the loan that works out the cheapest overall.

Before making a final decision, compare numerous personal loans and take into account the overall costs, including everything discussed within this guide.

Other things to consider when finding a cheap personal loan

Read through our knowledge base to find answers to your questions on cheap personal loans.

Where can you get a cheap personal loan?

Cheap personal loans are offered by a range of banks and alternative lenders. Compare costs between traditional banks, online banks, peer to peer lenders and online independent loan providers to find the cheapest loan for you.

What can you use a personal loan for?

When you’re applying for a cheap personal loan, you’ll often have to let the bank or lender know what it’s for. Personal loans can be used for a range of reasons including household appliances, cars, electronics, holidays and even education costs.

Is it cheaper to pay off your personal loan early?

While it may seem like a good idea on the surface, unfortunately it’s not always cheaper to pay off your personal loan early. Some lenders charge high fees as a penalty for doing so, which could make your loan more expensive in the long run.

Does your credit score matter?

Yes, your credit score matters when it comes to getting a cheap interest rate on a personal loan. Most lenders will use your credit score to determine the interest rate that they are able to offer you. The better your credit score, the cheaper your interest rate could potentially be.

Should you borrow more if offered?

If a lender offers you a larger loan amount than you initially apply for, you must carefully consider the additional interest and fees. While it may seem like the lender is doing you a favour, the overall cost of the personal loan is likely to be more expensive.

Are these loan available in all major cities?

Yes, personal loans are financing options that are  predominately delivered online, so therefore you can access if you live in Melbourne, Sydney, Perth, Adelaide, Brisbane, and all regional areas

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