The features and benefits of joint personal loans
With both secured and unsecured personal loans available, you can lock in a competitive interest rates tailored to your profile by comparing offers with us.
You won’t need to make a deposit on your personal loan; get approved for however much you can afford from as little as $2,000 all the way up to $75,000.
Loan terms are available from one to seven years, giving you and your co-borrower flexibility to select a loan length that accommodates your repayment needs.
By splitting each repayment with your co-borrower, your contribution to the personal loan each month is halved compared to the same loan taken out on your own.
When you and your co-borrower make repayments, you’ll each be gradually improving your credit score, potentially putting you in a better position to borrow in the future.
One of the most common uses for a personal loan is to consolidate outstanding debts. Shared debts are no exception and can help you tackle them together.
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.
Why compare personal loans through Savvy?
How do I compare joint loans?
Secured and unsecured
You’ll have the choice between opting for a secured or unsecured loan, meaning that you can either attach an asset as collateral to secure the loan or avoid doing so. Interest rates are generally lower with secured loans and lenders may be more willing to accept your application even if your credit score isn’t perfect.
However, unsecured loans are easier to obtain in general and can be processed more quickly.
How to apply for your joint personal loan
Before commencing your personal loan application with your co-borrower, it’s important to understand each step of the process thoroughly to avoid potential delays.
Understanding each of these steps and how they fit into the procedure of applying for personal loans is important, as it can save you valuable time overall and help you expedite your approval and funding.
You can follow these simple steps to see how the process works, from preliminary research and comparison all the way up to having your funds made available for use.
Pros and cons of joint personal loans
Increase your likelihood of a successful application
Too many cooks don’t spoil the broth with joint loans, with one or more extra borrowers potentially raising your chances of having your application approved.
Borrow more funds
Bigger projects can be facilitated by an extra person jumping into the application, as the potential added security for the lender could see them sign off on higher loan amounts.
Build shared responsibility
Not only does the burden of paying back the loan no longer rest solely on your shoulders, but the experience of joint loans can also encourage the transition into co-ownership of assets with your partner.
Relying on your co-borrower
It is a heavy responsibility to charge someone with fulfilling a loan, so make sure your co-borrower is reliable and able to help you share the weight of the joint loan.
And hurting your credit
If your co-borrower is unable to consistently pay their share on time, your credit score will sustain the same damage as theirs.
Other frequently asked questions about joint loans
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.