Written by The features and benefits of a $10,000 personal loan
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How long will it take for my $10,000 loan application to be approved?
While many personal loans can be approved within just two hours and funded in 24, the reality is that there are a variety of factors which can impact the time it takes to process your loan application. Some of these are in your hands as the applicant, while others are down to the processing power of your lender. On top of having a strong borrowing profile, the variables which can impact the speed of your application include:
- Your loan’s affordability: whether your lender deems the loan you’ve applied for to be clearly affordable for you based on your financial situation can have a bearing on how long it takes to approve. If they can see it’s within your capabilities as a borrower, you’re more likely to be approved straight away, rather than having them take more time to assess further documentation or counteroffer with a lesser amount.
- Whether you have your documents handy: a common reason for delays in the personal loan application process is applicants not having the correct documentation. This may be due to mistakenly submitting an older payslip or simply not providing copies of everything they need. Without all of your documents, your application can’t be formally assessed, with email or phone correspondence further dragging out the process. Double-check your lender’s required documents before you start the process to avoid this happening.
- The time of day and week you apply: although it may not seem significant, applying earlier in the day can make a difference to your application. By submitting your forms in the morning, you can often move closer to the front of the queue and have your chances of processing taking place over multiple days reduced. The same applies to the point of the week: a Friday afternoon application may drag out over a weekend, but Monday applications are far less likely to.
What type of personal loan is best for me?
The best loan available is different for each person. It depends on your financial situation and preferences as a borrower.
For many people, the best option will be a standard unsecured personal loan. These are the most widely accessible finance type, with a wider range of lenders offering them compared to secured finance.
Additionally, more borrowers can qualify for unsecured finance, as secured loans come with stricter criteria surrounding the value, age and condition of the asset you put up as collateral (typically your car). It may be the only choice between the two regardless of this, though, as some lenders enforce a minimum of $15,000 to $20,000 on their secured loans.
However, if you have a car or another valuable that's worth $10,000 and meets your lender's criteria, opting for a secured loan could allow you to access lower interest rates and fees, saving you money in the process. When you apply with Savvy, we'll talk you through your available options before we lock in a competitive loan deal.
Another option is a personal line of credit. These act as a more flexible alternative to the standard personal loan in that you can withdraw funds when you need them up to a set limit. These arrangements have no set end date and only charge you interest on the amount you withdraw. However, rates are higher on these loans and fees can be charged even if you don’t use them in a given month.
The types of Personal Loans
Personal loan repayment calculator
It’s important to have an idea of what different loans might cost you overall before you apply. Fortunately, Savvy’s personal loan repayment calculator is simple to use and tells you everything you need to know about how much different offers might add up to overall based on a variety of different factors.
Top tips for increasing your borrowing power
Ways to maximise your personal loan approval chances
Improve your credit rating
Perhaps the most effective way to enter the application process with the best chance of approval is to have a good credit score. This reflects your past borrowing and servicing of debt with a numerical figure, with higher scores meaning a positive track record and a greater sense of trustworthiness inherent in you as a borrower.
You can improve this by paying off your outstanding debts, lowering credit card limits and getting rid of any you don’t need.
Request a shorter term
The shorter your loan term runs, the lesser the risk posed to your lender of something happening which causes your income, and your ability to repay your loan as a result, to be hampered. As such, they prefer borrowers to take on loans of shorter terms, which also doubles as a way for you to cut down on the cost of your loan’s interest and fees.
You should only take out a loan on terms that suit your ability to repay them, though.
Apply with a co-borrower
If your personal situation is such that your chances of approval for a $10,000 are touch and go, you could benefit from taking out a loan with a co-borrower. This option is generally explored by couples who are looking to make a shared purchase and is a great way to increase your borrowing power.
This is because two income streams on a loan is seen by lenders as being safer when it comes to risk mitigation: if one borrower loses their job, for example, there’ll still be another to continue to pay the loan.
Enlist a guarantor on your loan
Another way to increase your borrowing power and chances of approval is to apply with a guarantor. This is a person who signs onto your loan with you and agrees to take on its repayments should you become unable to.
In most cases, this is a parent or close relation who’s in a strong position financially and can afford to service the loan in the unlikely event that you aren’t able to do so yourself.
Don’t apply for multiple loans
Finally, it’s important that you only take your applications one at a time throughout the process. Applying for multiple in succession will show up on your credit file, which can alert lenders and potentially reduce your chances of approval in the future. As such, you should only ever apply for one loan at a time.
If that application is unsuccessful, you should give yourself time to pinpoint why that is and remedy it before diving into your next application.
Apply for your personal loan online
Personal loan eligibility and documentation
Frequently asked $10,000 loan questions
Yes – each time you make a loan repayment on time (or early), it'll be marked as positive credit behaviour on your file. Over time, the more you make timely payments and avoid any defaults, the higher your credit score will climb. This will also have the added effect of showing potential future lenders that you have the discipline to repay a loan debt without any issues and can be trusted to do so, which can possibly help you secure lower interest rates.
No – there are no deposits necessary when it comes to personal loans. You’ll be able to access financing up to 100% of the value of whatever you’re looking to purchase. However, using your loan as a supplementary source of funds to support your savings is a great way to save money overall.
You can use our personal loan calculator to determine the cost of your loan month to month and as a whole. This enables you to calculate repayments for $10,000 loans based on different interest rates and loan terms. If you don’t know what your rate and fees are, you can simply calculate an estimate based on an average cost of each. Simply add 2% to the minimum advertised interest rate, $350 to your $10,000 principal (to represent the establishment fee) and $3 or $4 to your monthly repayments.
Yes – our flexible lenders are able to work with borrowers who derive part (or all) of their income through Centrelink benefits. More permanent, stable payments are required here, such as aged, disability and carer’s pensions all counted amongst the eligible income sources you can list. JobSeeker (on its own), Youth Allowance, Austudy and ABSTUDY aren’t eligible in the same way, as they can more easily end with a change to your study or employment status.
