No Fee Personal Loans
Get the boost you need with a modest personal loan that goes the distance when you compare with Savvy.
Fact checked
The benefits and features of a no-fee personal loan
Borrow up to $75,000
Even without security, you can borrow amounts of up to $75,000, with loans as small as $5,000 still available to borrow.
Flexible borrowing terms
Personal loans enable you to extend your borrowing term out from just one year all the way up to seven to shape the cost of your repayments.
No upfront or ongoing fees
The only added cost you’ll need to worry about with a no-fee personal loan is paying for interest, with no upfront or ongoing fees to concern yourself with.
Money in your account in 24 hours
The rapid nature of personal loans means that you can be approved within minutes and have your funds transferred in as little as one day.
Pay out your loan early
As part of your no-fee personal loan, you can save even more money on interest when you make additional repayments and complete your payments ahead of schedule.
Personalised rates
Each personal loan is automatically tailored to your personal financial situation, so the interest rate you receive will reflect your profile rather than a general one.
Secured or unsecured
You have the freedom to not provide security if you don’t want to, but doing so can help you secure an even lower rate.
Fixed interest
Because your interest is fixed at the beginning of the loan, you can budget with greater ease each month around your personal loan repayments.
How to qualify for a no-fee personal loan
Be at least 18 years old
The first point you’ll be required to meet as part of your personal loan eligibility is to be 18 years of age. All personal loans require the applicant to be of adult age at the time of applying, but the specific age can vary between either 18 or 21. You should check your lender’s criteria before applying to ensure that you meet this, the simplest requirement.
Earn at least $20,000 p.a.
You must be earning a minimum of $20,000 annually to qualify for any personal loan, let alone a no fee one, although the minimum will vary between lenders. This can come from multiple income sources, including Centrelink (provided it’s an accepted benefit and is supplementary in nature). However, the more you earn, the more likely you are to avoid costly fees on your finance product. For instance, someone earning $50,000 per year is more likely to avoid fees on their loan than another earning a low income.
Be permanently employed
Another factor is that their income will need to come from stable sources. Casual employees with inconsistent hours and no other employment, for instance, likely won’t qualify for a personal loan with no fees, while a full-time or permanent part-time worker will. However, if your casual income has been consistent for over six months, you may have a better chance of qualifying for a lower-cost loan.
Have no history of bankruptcy or defaults
You'll need a clean record when it comes to qualifying for no fee personal loans. Lenders want to be very confident in you as a borrower that you can be entrusted with a loan that doesn’t garner extra income for them in the form of fees. As such, you’ll be required to pay fees and a higher interest rate if you do have these in your past. They disappear from your credit file after five years, though, so you can apply after this time has passed.
Supply the correct documentation
Finally, simply being able to supply the required documentation is crucial to being approved for a loan without fees. This includes:
- ID – driver's licence and/or passport
- Last two payslips (and possibly 90 days of bank statements)
- Information on current assets and liabilities
- Last two years of tax returns if you’re self-employed
Common queries about no-fee personal loans
No-fee personal loans explained
Which fees can apply to personal loans?
There’s a variety of fees which can apply to personal loans ordinarily but aren’t charged by lenders offering finance without any fees. These can potentially set you back hundreds of dollars in themselves before you even start calculating your interest outlay, so it’s particularly important to avoid them wherever possible. The main costs which can apply to your loan are:
- Establishment fee: this is a one-off fee charged at the start of your loan term designed to cover the cost of setting up and opening your account. Although lenders can charge up to $595 for this, many don’t charge any lump sum for taking out your loan.
- Ongoing fee: as the name suggests, these are recurring fees charged each month on your loan repayments. Although they only generally cost around $10 per instalment, this can add up to $600 over a five-year term. Similarly, some lenders don’t impose this charge.
- Early repayment fee: some lenders won’t allow you to pay out your loan ahead of schedule for free, instead charging a substantial fee for doing so. While this can exceed $600 in some cases, the cost will depend on the size of your loan and how much time was left to run on your agreement. This is perhaps the most common fee to not be charged.
- Late payment fees: whenever you fail to submit your instalments on time or miss them altogether, you’ll be hit with a late payment fee. This can cost between $15 and $35 and will always be present on your loan agreement regardless of which lender you choose. Late payments are also recorded on your credit report, so it’s worth avoiding wherever possible.
How do I increase my chances of not paying any fees?
Personal loans aren’t like home or car loans in terms of your scope to negotiate fees with your lender. While fee waivers are common with larger types of finance on a case-by-case basis, they’re not as common with personal loans. Even so, there are ways you can go about maximising your chances of securing a low-cost loan which suits your needs as a borrower. Some of the ways you can go about this are:
Compare your options with Savvy
Perhaps the easiest way to avoid fees is to look for lenders who don’t charge them. You can do that right here with Savvy, seeing the various interest and comparison rates on offer as well as different available borrowing ranges and loan terms. Considering a greater number of options in the preliminary comparison process will hold you in good stead when it comes to picking the best loan with the lowest fees.
Maintain a strong credit score
One factor which can affect the cost of your fees in some cases is the level of risk you present to your lender. A large part of this can stem from your credit score, which is reflective of your recent history paying for expenses such as utility bills or other loans. If you can show your lender you’re a trustworthy borrower through a positive credit score and other successful loan repayments, your fees may be lowered.
Hold stable employment and income
Another part of the risk-based element of fees is how confident your lender is in your ability to continually support your loan repayments. If your recent employment history shows plenty of change and fluctuation, they won’t be as confident as they would be if your employment was stable and your income was consistent over a long period. Having this in your favour can reduce the chances of further risk charges.
Meet all of your lender’s criteria
Of course, you’ll have to ensure you qualify for the fee-free loan you’re after. Double-check your lender’s qualification criteria before starting your application to make sure you won’t be rejected for financing off the bat. You should always compare loans based on their eligibility requirements if you’re unsure of whether you have the profile to be approved for financing.
How else should I compare personal loans?
There are plenty of other ways to compare loans beyond the fees attached to each deal: comparing offers across all aspects will help you secure the most suitable loan available to you. The main areas to consider when comparing loan offers are:
Interest rates
Interest rates are the most important cost factor which affects personal loans. These are likely to add thousands of dollars to your loan repayments overall, with even seemingly small differences in cost potentially proving significant. For example, a $30,000 personal loan repaid over five years at 10% p.a. would cost you $8,151. However, opting for a loan with a rate of 8.5% p.a. instead would only set you back $6,849, representing a saving of over $1,300.
Comparison rates
If you want to quickly and easily compare both interest rates and fees, you should look at your loan’s comparison rate. This is a percentage figure which incorporates the cost of both your interest rate and the various fees which may apply to your loan. For no-fee loans, you should look for comparison rates which are the same as the advertised interest rate, although you should make sure this still applies to the particular loan and terms you’re applying for.
Loan terms
It’s important to be able to space out your loan repayments over as much or as little time as you need when repaying a personal loan. While lenders can offer terms of between one and seven years, this differs depending on who you apply to. Some lenders impose maximums of five years or minimums of three, so you should always cross-reference between financiers to help you lock one in which can accommodate your needs as a borrower.
Borrowing ranges
Additionally, not all lenders will be willing to offer the same loan sizes. The maximum of $75,000 doesn’t apply across the board, with many limiting their loans to a maximum of $50,000. Similarly, smaller loans of $2,000 aren’t always available either, with some lenders requiring you to take out a loan of at least $5,000. It’s important when comparing loans that the lender you choose actually offers the amount you need.
Additional features
You may wish to take advantage of other features attached to your loan, such as free early repayments, a redraw facility or the ability to choose your payment frequency (either weekly, monthly or fortnightly). Not having to pay a fee for early repayments can be highly beneficial, as it can save you hundreds of dollars (if not more) and months of your time if you do so. Redraw facilities give you the flexibility to withdraw from these payments if you need extra cash, rather than applying for further financing.
