Legal Fee Personal Loans

Find the best personal loan to cover your legal expenses by comparing your options here with Savvy.

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, updated on October 4th, 2023       

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What are legal fee personal loans and how do they work?

Legal fee personal loans are the same as any other personal loan: they’re a product available from $2,000 to $75,000 for use on whatever you need and are able to be repaid over one to seven years. In this case, you can use a personal loan to cover any legal expenses you might encounter for any type of proceedings or area of law.

One of the primary benefits of personal loans as a means of covering legal fees is that they’re more versatile that other types of finance. While products such as car, home and business loans are only able to be used towards their namesake, personal loan funds are paid directly into your account and can be distributed however you see fit. In addition to paying for legal counsel or a settlement, you can also consolidate other debts, pay for expenses around the house or even put a bit of money aside towards a small holiday if you wanted to.

What legal expenses might I need to cover with a personal loan?

There’s a wide variety of different situations under which you might look to take out a personal loan to cover your legal expenses, with the most common areas being:

  • Contested probate – challenging the validity of a will as a party with an interest in the deceased’s estate
  • Family law – matters such as divorce, custody disputes over children and property and asset settlement after separation
  • Personal injury – covering damages of a physical and/or psychological nature sustained as a result of a separate party

In terms of what the expenses are that you can accrue, there are myriad legal costs that can be charged both by your lawyer and the court. These can include:

  • Lawyers’ hourly rates, which generally range from as low as $200 up to over $600 and can be based on:
    • Travelling time to court and to consult with you (where applicable)
    • Reading and researching documents
    • Expenses relating to witnesses
    • Other administrative costs
  • Court settlements
  • Out of court settlements
  • The opposing party’s legal fees
  • Court costs, such as daily hearing and conciliation conference fees

Before committing to a particular lawyer or firm for representation, you should always be aware of the fees that you’ll be charged for the process. Lawyers should always be open and transparent about what these fees are, outlining clearly what they’ll be charging you for and the rate at which they do so. This can be an effective way of finding the right type of legal representation, as you can save money by comparing from a wider range of options.

Types of personal loan

Why compare personal loans through Savvy?

How to compare legal fee personal loans

Frequently asked questions

Can I take out a loan for any type of legal proceedings?

No – lenders won’t be keen on granting a loan to cover legal costs for a case that could result in your incarceration. This would severely hinder your ability to repay your loan, as your income streams would run dry. That’s why comparatively low-risk proceedings like those listed above are more commonly accepted for personal loans.

Do I have any other options when it comes to paying for legal fees?

Yes – some lenders offer a specialised legal finance product designed for the express purpose of covering legal costs. These are generally larger loans, so they come with higher borrowing ranges from around $25,000 to $400,000. However, they’re secured and are more restrictive with how you can use them, namely that they can only be dedicated towards your legal fees.

Am I able to pay my personal loan in full once I receive my settlement?

Yes – many personal loans come with no fees associated with paying off your debt early, which can be a great way to save money across your loan. Even if these fees are charged, it could be a worthwhile financial decision to pay the loan and additional costs to get it off your books as swiftly as possible.

How often will I need to make repayments?

In most cases, you can choose the frequency of your loan payments, coming either at a monthly, fortnightly or weekly rate. It’s important that you choose the option that suits your personal financial situation the most.

How can I work out how much my loan will cost me?

If you’re unsure about how much your loan will cost you, you can utilise Savvy’s personal loan repayment calculator. You can use this tool to work out an estimate of your loan’s cost, both on a month-to-month basis and overall, based on differing amounts, terms, rates and payment frequencies.

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.