The features and benefits of Sydney personal loans
Depending on the type of loan you’re after, you can be approved for amounts as low as $2,000 and as large as $75,000 (depending on your borrowing power).
Customise your loan to be as manageable for you as possible, with short terms from one year and long terms up to seven available to suit your personal situation.
You can be approved inside a minute of applying for your loan, with funds able to be transferred directly into your account in as little as 24 hours thereafter.
In addition to selecting your loan term, you can also decide whether to contribute to your debt on a weekly, fortnightly or monthly schedule.
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 to maximise your borrowing power
Securing your personal loan with an asset as collateral is a highly effective way of increasing your borrowing power.
By attaching your car, boat or another vehicle to your loan, you can immediately increase the maximum amount you’re eligible to borrow to as much as $100,000.
Of course, you’ll only be approved for an amount close to this if you can afford it. Security will also reduce your interest rate, saving you further money in the process.
Common personal loan queries from Sydney borrowers
How to get approved for your personal loan in Sydney
How do personal loans in Sydney work?
When assessing how personal loans work, they function very similarly to any other type of finance: you’ll apply to your lender (either in Sydney or anywhere else in Australia) and be given a lump sum at the beginning of the agreement. From there, you’re required to pay it back over weekly, fortnightly or monthly instalments across a set period of years (in this case between one and seven) with interest and fees. Interest is calculated as a percentage of your outstanding loan principal daily, meaning you can benefit from making more frequent repayments. As you continue to make repayments, the proportion of your instalment which comes out of your loan principal will increase and the amount of interest you pay each month will gradually fall.
However, the biggest difference lies in how you’re able to use the loan. Because personal loans are designed to be flexible, you can essentially dedicate your funds to any purpose you may need in your private life. For instance, you might wish to install a swimming pool in your backyard, use the funds to pay for training to advance your career or something as simple as helping cover some of your household expenses for the next few months.
How should I compare personal loans in Sydney?
There are many ways you can go about assessing personal loans to find the most suitable offer for your needs, which is why it’s important to consider your options with Savvy. We take the hard work out of comparing loans by presenting you with all the key information you need to make a call on which deal is right for you. You should consider the following key factors when comparing different finance offers and lenders:
- Am I eligible? Before you submit your application, always double-check to ensure you meet your lender’s criteria. These will primarily pertain to things such as your age (at least 18), residential status (permanent resident or holding an applicable visa), income (at least $20,000 but sometimes more), employment (stable, consistent work capable of supporting your payments) and credit history (relatively clean with no defaults or bankruptcies).
- What are the interest and fees? These will form the two most substantial factors in determining the cost of your loan. Even small differences in interest rates of 0.5% to 1% can lead to savings of hundreds of dollars, so it’s especially important to compare these. Many lenders also don’t charge establishment and ongoing fees, which can cost up to $595 and $10 per month each, so there are significant savings to be had by taking the time to compare these factors.
- How long can I take to repay my loan? Different lenders will have different limits when it comes to how much time they can allow borrowers to repay their loans. While the general range is from one to seven years, many lenders cap their loans at a maximum of five years or a minimum of three. It’s very relevant to consider if you find yourself looking to take out either a particularly short or large loan.
- How much am I able to borrow? In the same way, some lenders will be more willing to approve loans for larger amounts than others. The maximum of $75,000 doesn’t apply across the board, with many financiers limiting their unsecured finance deals to $50,000. Others will require you to borrow more than the common minimum of $2,000, enforcing stricter minimum requirements of up to $5,000 instead. Look out for a lender who can approve you for the amount you need when comparing offers.
- Can I offer security? While most personal loans are unsecured, some lenders also offer secured finance as a slight alternative. This allows you to potentially borrow as much as $100,000 and be approved at a lower rate and with fewer fees by putting up an asset you own, such as your vehicle, as collateral for the finance agreement. If you’re in a position to offer security, you can narrow down your options to those who offer the product you’re after.
- Can I repay at my own speed? Most personal loans come without any fees associated with paying them off ahead of schedule, but this isn’t always the case, making it especially important to compare if you want the freedom to do so. By making extra repayments on your loan, you can save hundreds, if not more, on your loan and shorten its term by months, clearing your debts sooner. If you find yourself in a position to pay more than what’s required, it can be highly beneficial to do so.
How can I speed up my personal loan application process in Sydney?
If you’re wanting to ensure that you gain access to the funds you need fast, there are several things you can do to help speed up the process from your end. These include:
- Have all your documents ready to go: documentation is one of the most common reasons for finance applications being held up. Not having the right documents or missing some key pieces of information can stretch out the process. Check your lender’s site in advance and prepare all the pieces you need to apply.
- Apply within your means: lenders are able to tell almost straight away when they receive an application from someone who’s asking for more than they can afford. You should only apply for a loan with repayment conditions you know you can comfortably manage. Use Savvy’s borrowing power calculator to estimate what you might be approved for based on your income and expenses.
- Apply early in the day and week: getting your application in the queue early gives you the best chance at having it seen and processed by your lender promptly. Applying closer to the end of the day or on a Friday runs the risk of having your application bleed over into several days, delaying the time it takes to get to you.
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.