$20,000 Personal Loans

Name: $20,000 Personal Loans
Creator: Savvy
Published: 2021-10-06T14:08:27+10:30

Home > Personal Loans > $20,000 Personal Loans

It won't affect your credit score.

Written by , updated on July 4th, 2024

The features and benefits of a $20,000 loan

Competitive interest

You can fix your interest at an affordable level throughout your loan, with a wide range of competitive deals helping you secure low-cost finance.

Borrow over one to seven years

Personal loans afford you a level of flexibility to shape how manageable your repayments are, from saving on interest over as little as 12 months to reducing your monthly expenses over up to seven years.

Pay your loan out early

We can connect you with lenders who enable you to make additional contributions towards your loan and pay it off early without incurring any fees for doing so.

Avoidable fees

Many of our lending partners also don’t charge ongoing fees ($10), an establishment fee (up to $595) or either on their loans, helping you save further.

No upfront payments

There’s no obligation for you to make a lump-sum deposit at the beginning of your loan, nor will you be required to pay any upfront fees from the outset.

Loans available for self-employed

It doesn’t matter if you don’t receive your income via payslips like most others; you can qualify for a standard personal loan even if you’re self-employed.

Types of personal loan

Unsecured personal loans

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

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 rate personal loans

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 rate personal loans

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.

Debt consolidation loans

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.

Travel loans

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.

Wedding loans

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.

Renovation loans

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.

Self-employed loans

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.

Student & education loans

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.

Green loans

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?

100% free

There's no need to worry about forking out to compare offers. Our service is free, so you can come back whenever you like.

Paperless applications

You won't need to worry about sifting through documents and visiting the post office, as they can all be submitted online.

Reputable lending partners

We've partnered with personal loan companies you can trust to ensure your comparison is a high-quality one.

A checklist for before you apply for a $20,000 personal loan

Compare with Savvy

Confirm your eligibility

Review your credit file

Work out your affordability

Prepare your documents

Compare with Savvy

Confirm your eligibility

Review your credit file

Work out your affordability

Prepare your documents

Common $20,000 personal loan queries

How quickly can I be approved?

Once you’ve submitted your initial application, you can receive an instant approval from your lender in as little as 60 seconds. If you’re successful, you’ll be able to continue with your application and have the funds transferred directly into your account in as little as 24 hours from your first submission.

The entire process is a fast one, so you can maximise that speed by having everything prepared and applying early in the day and week.

How often can I make repayments?

Personal loans will give you the option of whether to make your repayments on a monthly, fortnightly or weekly schedule. You can choose this based on your own personal income frequency so that you give yourself the best chance of taking on a personal loan that you can manage comfortably.

If your lender doesn’t charge for extra payments, you can make these as often as you like beyond the minimum. Making fortnightly repayments may actually save you money over monthly payments, as they come to an equivalent of 13 months’ worth of contributions each year.

How much can I borrow with bad credit?

Bad credit borrowers are only accepted for unsecured personal loans up to a maximum of $10,00 to $12,000, so you won’t be able to take out a $20,000 loan if you find yourself in this position. You can, however, look to a bad credit car loan if you intended on using the funds to buy a vehicle, as these will allow you to borrow $20,000 or more (provided you can afford to repay it).

Can I apply for a $20,000 loan on Centrelink benefits?

Yes – so long as you’re earning enough to support your proposed loan’s repayments, you can be approved for a $20,000 loan on Centrelink payments. However, a large part of this is determining whether your benefits are accepted as income by your lender, which isn’t always the case. Stable sources such as aged, disability, carer’s and veterans’ pensions are all accepted, but payments contingent on your age, employment or study status like Youth Allowance, Austudy and JobSeeker (on its own) aren’t.

Am I able to calculate my loan’s repayments before approval?

Yes – you can use our personal loan repayment calculator to determine the total monthly and overall cost of financing prior to applying. Even if you don’t already have your personalised rate and fees, you can run a rough calculation of what your loan might cost you by adding 2% to the minimum interest rate, $350 to your $20,000 loan sum and $3 or $4 to your monthly repayments.

What’s a guarantor and should I use one?

A guarantor is a third party, such as a parent or close relation, in a strong financial position who guarantees the full repayment of your personal loan, even if you can’t do so yourself. These are especially useful for borrowers with a bad or minimal credit history that wouldn’t otherwise qualify for $20,000 or would be at a high rate. If you stay on top of your repayments comfortably and consistently, your guarantor won’t be involved in your repayments at all.