Low-Cost Personal Loans

Compare personal loans with low fees with Savvy and save on your finance.

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, updated on October 4th, 2023       

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How can I get a low-cost personal loan?

When shopping around for personal loans, there are many ways you can look to lower the cost of your deal. It’s important to be aware of these before applying, as doing so can enable you to save hundreds, if not thousands, on your personal loan. Some of the things you can do to help you receive a lower rate (and potentially lower fees too) on your personal loan include:

Maximise your credit score

Entering the personal loan application process with a good credit score is one of the best ways to help your chances of being offered low interest rates. Your credit score is an indication of your ability to borrow and repay debts in the past, so the higher it is, the more it reflects on you in a positive light from a lender’s perspective. You can boost it by paying off any outstanding debts, lowering the limits on your credit cards and removing any you don’t need or use as much.

Ensure you have a stable income

Lenders want to be sure that their money will be repaid as part of the loan agreement and unstable or inconsistent income flow can cast doubt on that. Being permanent in your job and earning enough each pay cycle to comfortably service your loan will increase your lender’s confidence in your ability to repay it in full without any issues, bringing the risk and rate down in the process. 

Build up your savings

Similarly, lenders prefer to play it safe when it comes to the savings you have in your account. These can serve as a back-up plan if your income is unexpectedly interrupted, providing you a way to continue paying off the loan through that period. Overall, though, more substantive savings provide lenders with an indication of your financial discipline and ability to commit to a plan over an extended period. As such, these can lower the cost of your loan.

Avoid fees where you can

A simple way to cut down on your personal loan cost is to look for loans which don’t charge certain fees. The most prominent fees to look out for when choosing your low-cost personal loan are establishment fees and ongoing fees, with the former costing up to $600 and the latter up to around $20 per month. These can add up over time, so sidestepping them completely will be highly beneficial for you.

Make free additional repayments

While these won’t reduce your fees or interest rate at the start of your loan, making additional repayments throughout its term will cut down on your overall spend significantly. Additional repayments shorten your loan, cutting down on the amount of time you’ll be paying interest and fees, thus lowering the cost of your personal loan. 

Compare your options with Savvy

By surveying the market as thoroughly as possible, you can give yourself the best shot at finding the personal loan with the lowest rate and fees. You can compare loans from our lending partners based not only on their cost, but other handy features as well, right here with Savvy. We can redirect you straight to your chosen lender’s site so that you can complete your application and receive an instant outcome.

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Frequently asked questions about low-cost personal loans

How much can I borrow?

You’ll be able to borrow as little as $2,000 all the way up to $75,000 on an unsecured personal loan. The amount you’re actually approved for, though, will depend on a set of variables including your income, credit score and past borrowing.

What documents will I need for a low-cost personal loan application?

You’ll need identity documents such as a driver’s licence and passport, bank statements, payslips, proof of employment, information on existing assets and debts and any other relevant documentation your lender may need.

Can I get a low-cost personal loan as a temporary resident?

Not really – again, temporary residents are seen as a higher borrowing risk, given their inherently less certain residency which could (in theory) be cancelled, and come with increased rates and fees as a result.

Is it possible to get a personal loan with bad credit?

Not really – bad credit borrowers will always attract higher interest rates and fees on personal loans than standard applicants. There are still plenty of avenues open to you, just not at a hugely low cost.

Should I choose a fixed or variable rate on my personal loan?

Both fixed and variable rates have their advantages when it comes to personal loans. Fixed rates enable for more accurate budgeting into the future and provide stability, as they remain the same throughout your loan. Variable rates leave you open to taking advantage of decreases in your lender’s interest rate, although they start at a higher initial base rate than fixed interest does. We’re partnered with diverse lenders to provide you a selection of fixed and variable rates to compare.

Will applying with my partner lower the costs on my personal loan?

Most likely, yes – applying with your partner adds a second income to your repayments, which will lower your lender’s perception of risk on your application and open you up to lower rates and fees. It can also expand your borrowing power beyond what you could initially manage on your own, which makes it useful for larger shared expenses like home renovations or debt consolidation.

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.