Personal Loans Melbourne

Find and compare a range of flexible options from Savvy’s panel of reputable lenders right here before you apply.

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, updated on October 4th, 2023       

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The benefits of personal loans for Melbourne residents

Compare rates and save

Through Savvy, you can compare a wide range of personal loan offers with rates tailored to your profile, helping you choose the cheapest deal available with more confidence.

Choose your own repayment term

Personal loans can be taken out over a period as short as one year and as long as seven, so you have a major say in the cost of your monthly repayments.

Borrow any amount up to $75,000

You can take out a personal loan and use it for significant outlays up to $75,000 or a small helping hand as low as $2,000; they’re versatile to suit your needs.

Funds in your account in 24 hours

Applications are fast and simple and can be processed rapidly, with your lender generally able to forward your approved funds directly into your account in just 24 hours.

No effect on your credit file

When you get a quote from your lender and receive your personal loan interest rate, it won’t be immediately registered on your credit file, giving you the option to compare further.

Plan your next holiday

One of the many uses for a personal loan is to help you cover the cost of your next getaway, whether it be a short trip into the country or an overseas adventure.

Types of personal loan

Why compare personal loans through Savvy?

How to save money on your personal loan

Frequently asked questions about personal loans in Melbourne

Can I get approved for a purchase outside of Victoria?

Yes – you can use your personal loan for whatever you like, regardless of where your purchase may be located. This type of finance is designed to be used however you see fit, meaning you aren’t really restricted at all when it comes to paying for whatever you need. For example, if you lived in Melbourne and needed a personal loan to pay for minor maintenance at an investment property you own interstate, you’d be free to do so.

Can I apply for a personal loan with my partner?

Yes – if you can’t quite afford to take on the loan yourself or wish to share the responsibility with your partner, you can do so with a joint personal loan. Applying jointly can be an effective way to increase your borrowing power and potentially lower your interest rate, as lenders will have more confidence that the loan will be repaid based on two incomes instead of one. Doing this can help you increase your credit score together, which can be useful if you’re looking to enter the property market in the future.

What documents will I need to supply for my application?

There are a range of different documents that your lender might ask for when you’re completing your personal loan application. These include:

  • Photo ID such as your driver’s licence and/or passport
  • Last two payslips
  • Proof of employment (contract) and 90 days of bank statements may be required
  • Centrelink income statements (where applicable)
  • Internet banking details
  • Information on assets and liabilities
Are self-employed workers eligible for standard personal loans?

Yes – although personal loans in Australia are built on the requirement to supply payslips, they’re also available to self-employed workers who aren’t paid in a conventional way. Sole traders can apply for a standard personal loan by submitting the two most recent financial years’ worth of tax returns instead of payslips. If you can do this, you’ll be able to proceed with your application as any other PAYG worker would.  

More about personal loans in Melbourne

How should I compare personal loans in Melbourne?

Comparing as many personal loan offers as you can is one of the most important steps you can take before submitting your application for financing in Melbourne. This will help you pick out the deal which is best for your needs with more confidence than if you simply applied for the first loan you saw. Fortunately, you can do just that right here with Savvy. We’re partnered with online lenders from around Australia who can work with you no matter where you live across Victoria and provide you with the tools to contrast offers accurately and effectively.

Some of the main areas to consider when comparing personal finance offers with Savvy are:

Eligibility criteria

There’s not much point in applying for a loan where you don’t meet all of the criteria set by your lender. This is the first hurdle in many respects to getting approved for finance: ensuring you meet the qualification requirements. These can vary depending on the lender you choose to go with but they remain largely consistent in most cases. The primary factors to consider are:

  • You must be at least 18 years of age
  • You must be an Australian citizen, permanent resident or eligible visa holder
  • You must be employed and earning an income of at least $20,000 from stable sources
  • You must have a good credit history and no record of defaults, bankruptcy or court judgments

Loan amounts

Of course, the lender you’re applying to should be able to offer you the amount you’re after. Different lenders will have different limits set in stone when it comes to their available loan terms, with some capping their loans as high as $75,000 and others maxing out at $50,000. Similarly, there are lenders willing to approve applications for amounts as small as $2,000, but many will impose minimums of $5,000. Don’t settle for more or less than you need; compare thoroughly to find a financier who matches your personal requirements.

Interest rates

The most significant influence on the cost of your personal loan is its interest rate. It’s perhaps most important to get this aspect of your loan right, as it can be the difference between you saving and spending hundreds of dollars. For instance, a $30,000, five-year personal loan at 7.5% p.a. would cost you just under $6,000 in interest but opting for a 9% p.a. rate instead would set you back over $1,280 more. By comparing your finance options closely, you can be more confident in finding the deal with the lowest rate.


On top of interest, there’s a variety of fees which can be charged on your personal loans. Unlike interest, though, these aren’t always present on loan agreements, making it extra important for you to find lenders who offer low-fee or no-fee loans. The main charges to keep an eye on in the comparison process are establishment and ongoing fees. Establishment costs are one-off fees at the beginning of your loan which can cost up to $595, while ongoing charges occur every month and can set you back as much as $10. Lenders often don’t charge either or both of these, though.

Loan terms

You should always be as close to 100% comfortable as possible when repaying your loan, so locking in your ideal repayment term is a must. Like loan amounts, these differ depending on the lender you choose to go with. For example, while the full range of one to seven years is offered by many lenders, others will only set their available terms at either a maximum of five years or a minimum of three. If you find yourself needing to borrow at either end of the spectrum, you should always find a lender which can meet your preferences.

Repayment flexibility

You should always have the ability to pay off your loan ahead of schedule if you find yourself in a position to down the track. The more you can pay prior to the set conclusion of your agreement, the more you’ll save overall on interest. This is because the amount of interest you owe will fall at a sharper rate in line with your decreasing amount owed. As an example, you’d save $937 and cut seven months off your loan term if you contributed $100 extra each month on a $40,000, five-year loan at 6.5% p.a. Having the freedom to do this without incurring any charges is crucial.

Other useful features

There are other features which might come in handy on your personal loan. One example is a redraw facility, which enables you to draw funds from any additional payments made across your term. This saves you from having to seek out another loan agreement to access the funds you need, although it can stretch out the term of your loan and cost you more interest to withdraw these funds. You should also look for loans which allow you to pick between monthly, fortnightly and weekly repayment schedules in line with your preferences as a borrower.

Which factors can impact my borrowing power?

The amount you’re approved for isn’t as simple as asking for a number and having your application signed off on. There are a variety of factors which go into determining how much you can afford to take on as a borrower. These include:

The type of loan you choose

As mentioned, offering loan security can increase your potential borrowing power from a maximum of $75,000 to $100,000. However, the amount you’re approved for will have to correlate to the value of the asset you’re attaching as collateral. For instance, if your car was worth $20,000, you wouldn’t be approved for a personal loan application of $100,000. The idea is that, in the event you become unable to repay your loan, your lender can acquire the asset and sell it to recoup any lost funds (although this is a last resort).

Your income

Of course, you’ll have to show that you’re earning enough to support your loan’s repayments. Lenders won’t want to put you under any financial stress when it comes to managing your instalments, such as approving you for a loan which takes up more than 50% of your disposable income. The more you earn and the more funds you have available, the more you’ll be able to pay each month and borrow overall as a result.

Your employment

Not only is your income important, but also how you earn it. Lenders want to be as certain as possible that your ability to repay your loan won’t be hampered across your term by a dramatic change of scenery in your working life, such as being made redundant or having your shifts cut as a casual worker. Those who are holding down full-time employment or have stayed in the same job and industry for an extended period are more likely to be approved for greater sums, particularly compared to new casual and self-employed workers.

Your expenses

Your regular expenses and any outstanding liabilities will also come into play when determining what you’re able to afford as a borrower. These costs eat into your income and disposable funds, so financiers will carefully consider them when assessing your borrowing power. By paying off any outstanding loan or credit card debts, as well as trimming down on any other regular expenses wherever possible, you can increase your overall borrowing power and clear your slate as you enter your loan agreement.

Your credit history

Finally, lenders will want to see evidence of positive credit behaviour when assessing your suitability for finance. Your credit score and history will show how you’ve fared in the past in terms of similar loan debts and other areas such as paying bills on time. A strong score indicates a trustworthy borrower who can be trusted to service debts reliably. In many cases, it can be the difference between being approved for a greater score and not.

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.