Cheap Personal Loans
Compare personal loan offers from around Australia with Savvy to help you find the cheapest rates and deals today.
Last updated on April 8th, 2022 at 02:38 pm by Thomas Perrotta
Compare cheap personal loans
Saving money on a personal loan is a priority for countless Australians around the country. The best place to start when it comes to reducing your loan’s cost is to compare as many options as you can. You can do that right here with Savvy, as we’re partnered with a range of reputable lenders.
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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 | |||||||||||||||||||
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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 | |||||||||||||||||||
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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 |
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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 cheap personal loans
Competitive interest rates
You can access personal loans with interest rates as low as 4.45% p.a. (secured, 4.45% p.a. comparison) or 5.35% p.a. (unsecured, 6.14% p.a. comparison).
No-fee options
We’re partnered with lenders who are willing to disregard almost all personal loan fees on their finance deals, enabling you to save hundreds over your repayment period.
Customisable loan terms
You get to decide how affordable your repayments are, with interest-minimising terms as low as one year and cheaper instalment options up to seven available.
Fixed or variable interest rates
Additionally, you can compare personal loan offers which fix their interest rates and those which leave them variable, both of which can save you money in different circumstances.
Free early repayments
Most lenders will also enable you to pay above and beyond the minimum required amount, which could slash your loan term and save you hundreds, if not thousands.
Get approved for up to $75,000
You’ll also get to borrow just about any amount you need, from as little as $2,000 all the way up to $75,000 (depending on your choice of lender).
Secured or unsecured loans
Secured loans can save you much-needed money on interest and fees, but unsecured loans are faster and easier to apply for; you get to choose between the two.
Use funds however you like
Best of all, you can utilise your funds in any way you like: to fund improvements around your home, pay for your wedding or honeymoon or even simply dental expenses.
How Australians find cheap personal loans with Savvy
Compare more, save more
By increasing the number options in the comparison process, you can be more confident in your decision on which is the cheapest.
Competitive lender panel
Our partnered lenders include a range of online financiers who offer low-cost deals and are more competitive than traditional banks.
Easy and accessible comparisons
Comparing personal loans is fast, easy and can be completed via your smartphone (along with your application).
Cheap personal loans explained
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.
Interest rates
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 maths to work out how much you stand to benefit.
Interest Rates: The main factor that determines how cheap a personal loan ultimately is, your interest rate will be calculated based on a number of factors such as your credit score, employment and income stability. The more favourable these are, the lower your rate is likely to be.
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 their primary fees and charges included. The comparison rate more accurately reflects the true cost of the loan, so it’s a good idea to use this when calculating personal loan costs rather than solely interest rates.
Fees
Some of the most common fees and charges that you need to look out for include:
Establishment fees: This fee is charged to cover expenses relating to setting up and opening your personal loan, with the cost built into your ensuing repayments. These can cost up to around $600 when charged on a personal loan, but some lenders don’t charge these.
Administration/ongoing fees: These are charged on an ongoing basis throughout your loan repayments to cover other administration costs. They’re inexpensive at up to just $10 per month when charged, but these can add up over the course of a longer loan term; a five-year loan with $10 monthly fees would end up setting you back around $600 in this area alone.
Early repayment fees: These can apply in certain circumstances when you pay above the minimum and complete your loan payments ahead of schedule. Their cost is calculated based on the time left to run on your loan at the point of completion, but usually aren’t charged.
Late repayment fees: These will be charged if you submit an instalment late, typically five days or more after its intended due date. These can vary in cost between $15 and $35.
Finding a loan which strike a balance between the cost of its interest rate and fees is imperative when you’re looking to secure 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
- Earn at least $20,000 to $26,000 annually from stable income sources
To be able to prove the above, you’re going to need the following:
- Driver’s licence/passport as proof of identity
- Income statements such as your payslips
- Information on your current assets and liabilities
- A recent utility bill as proof of address
- Your online banking details
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, you should always compare numerous personal loans and take into account the overall costs. That’s where Savvy can help you, as we make it simple to compare loans from around Australia by breaking down offers into a simple-to-read format.