A $10,000 personal loan gives you access to a lump sum to cover a range of expenses when you don’t have the cash on hand. Usually unsecured, this type of loan gives you the flexibility to use the funds as you choose and lets you choose repayment terms that suit your budget, making it a practical option for many borrowers.
How can I get a $10,000 personal loan?
Personal loans can range from $5,001 up to $75,000, or more if the loan is secured. While $10,000 is on the lower side, you’ll still need to meet the same basic eligibility criteria whatever amount you apply for.
Exact eligibility requirements vary from lender to lender, but usually include:
- Being at least 18 years old
- Having Australian citizenship, permanent residency or eligible visa status
- Receiving stable income that meets the lender’s minimum – though this can be as low as $20,000 per year
- Having a credit score that meets the lender’s requirements
You’ll also need to provide documentation like photo ID (driver’s licence or passport), proof of income (recent payslips or tax returns if self-employed) and sometimes 90 days of bank statements.
If you’re unsure where to begin, you can compare personal loan options with Savvy. We’ll guide you through the process, helping you find lenders suited to your needs and secure the loan you’re after.
Types of personal loans
Unsecured personal loans
An unsecured personal loan allows you to borrow as much as $75,000 without putting up valuable assets as security.
Secured personal loans
Secured personal loans use collateral like a car to potentially qualify you for better interest rates and higher loan amounts.
Fixed rate personal loans
Fixed interest rates are locked in at the beginning of your loan and remain constant throughout your repayments.
Variable rate personal loans
Variable interest rates fluctuate during your term with changes in the market, meaning you can benefit from falling rates – but may pay more if rates increase.
Joint personal loans
Applying for a loan with a partner can boost your chances of approval and is handy if you have shared expenses to cover.
Self-employed personal loans
Personal loans aren’t limited to PAYG employees. If you’re running your own business, you can still be approved for a self-employed personal loan.
What can I use my $10,000 personal loan for?
A personal loan is a flexible product, meaning you can use your $10,000 for a variety of purposes. This can include:
- Debt consolidation: debts can stack up, especially if you’re paying off multiple loans or credit cards. Combining them into a single loan can simplify your finances, potentially lower your repayments and reduce the total interest you pay.
- Home improvements: a $10,000 loan can cover the cost of materials and labour for smaller projects around the home, whether that’s refreshing your bathroom or giving the house a lick of paint.
- Legal fees: legal expenses can quickly add up to thousands of dollars. A loan can help cover the cost of unexpected legal matters, giving you the funds you need even if you don’t have savings set aside or room in your budget.
- Medical purposes: if you have large out-of-pocket hospital costs, whether for elective procedures, dental work or other medical expenses not covered by Medicare or insurance, a $10,000 personal loan can provide the funds for your medical care.
- Wedding and honeymoon: if your savings won’t quite cover the cost, a personal loan can help fund your wedding celebrations or can be put towards honeymoon expenses.
- Travel: flights, accommodation and other travel costs can quickly add up, especially if you’re planning a longer or more elaborate trip. A personal loan can help cover holiday expenses, so you can enjoy yourself without worrying about dipping too much into your savings.
- Vehicles/cars: if you’re looking to buy a cheaper used car, you might find yourself locked out of traditional secured car loans due to the lower amount and the age of the vehicle. In this case, a personal loan could help cover the cost, along with any extra expenses involved in buying a vehicle.
Typically for a $10,000 loan, weddings and holidays are the two most common finance reasons given by borrowers applying through Savvy.
How much will my $10,000 personal loan cost?
The total cost of your $10,000 personal loan depends on several factors, mainly the interest rate you receive, any fees involved and the length of your repayment term.
Interest rate
The interest rate has the biggest impact on your loan’s overall cost.
The rate you’re offered will depend on your personal financial profile, including your credit score, income and the lender you choose.
Here’s an example showing how different interest rates affect monthly repayments and total cost over a five-year loan term:
| Interest rate | Monthly repayment | Total interest | Total cost of loan |
|---|---|---|---|
| 6.00% p.a. | $193 | $1,600 | $11,600 |
| 6.25% p.a. | $194 | $1,670 | $11,670 |
| 7.00% p.a. | $198 | $1,881 | $11,881 |
While you might not notice much of a difference in your monthly payments, the savings can add up when you look at the whole picture. In the case above, having an interest rate of 6% p.a. instead of 7% p.a. can save you $281.
Comparison rate
When comparing loans, it’s important to look beyond the interest rate and consider the comparison rate, which includes both interest and standard fees, giving a clearer picture of the true cost of the loan. Sometimes, a loan with a lower interest rate can end up costing more once fees are factored in.
Here’s an example comparing two $10,000 loans with similar interest rates but different comparison rates over three years:
| Loan | Interest rate | Comparison rate | Total cost of loan |
|---|---|---|---|
| Loan A | 6.5% p.a. | 7.9% p.a. | $11,264 |
| Loan B | 6.7% p.a. | 7.4% p.a. | $11,182 |
As you can see, while Loan A has a lower interest rate than Loan B, its comparison rate is higher, meaning that Loan B works out as the cheaper option.
Loan term
The longer you take to repay your loan, the more interest you’ll pay overall – even if your monthly repayments are lower. The cost difference can be significant.
For example, a loan with a 6.75% p.a. interest rate will have different monthly repayments and total costs depending on the term:
| Loan term | Monthly repayment | Total interest | Total cost of loan |
|---|---|---|---|
| 1 year | $864 | $369 | $10,369 |
| 3 years | $308 | $1,075 | $11,075 |
| 5 years | $197 | $1,810 | $11,810 |
If you can afford higher monthly repayments, choosing a shorter term can save hundreds or potentially more than $1,000 on the total cost of your loan.
To get an idea of how much your $10,000 loan might cost, you can use the calculator below to estimate your repayments based on your preferred term and interest rate.
Personal Loan Repayment Calculator
It’s important to have an idea of what your loan might cost you overall before you apply. Fortunately, Savvy’s personal loan calculator is simple to use and lets you know how much your repayments could be.
Your estimated repayments
$98.62
| Total interest paid: | Total amount to pay: |
| $1233.43 | $5,143.99 |
How to apply for a $10,000 loan with Savvy
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Apply online
Fill out our simple online form to request your $10,000 loan.
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Provide your documents
Upload any required documents through our secure online portal.
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Speak to a Savvy broker
A member of our team will call you to discuss your options.
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Submit your application
Your broker will prepare and submit your application to your chosen lender.
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Receive your funds
Once approved, we’ll handle settlement and your $10,000 loan will be transferred to you.
What our customers say about their finance experience
Savvy is rated 4.9 for customer satisfaction by 445 customers.
Personal loan lenders you can compare
Frequently asked $10,000 loan questions
There are several simple steps you can take to boost your chances of approval:
- Improve your credit score: pay down debts and manage your credit responsibly.
- Choose a shorter loan term: lenders prefer shorter terms as they lower their risk.
- Apply with a co-borrower: adding a partner can increase your borrowing power.
- Use a guarantor: a guarantor agrees to cover loan repayments if you can’t.
- Avoid multiple applications: only apply for one loan at a time to protect your credit score.
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.
Yes, many lenders will accept Centrelink benefits as part or all of your income, with stable payments like aged, disability and carer’s pensions all generally eligible. However, benefits such as JobSeeker (on its own), Youth Allowance, Austudy and ABSTUDY usually aren’t counted because they can end with changes in study or employment status.
Your credit score affects your borrowing power, so if you have bad credit, your options may be more limited. However, at Savvy we work with a variety of lenders willing to consider borrowers with less-than-perfect credit, so you may still have options. Rates are typically higher to account for the increased risk, but you may still have options for borrowing $10,000. The best step is to get in touch to see what you’re eligible for – and at this stage, there’s no credit check, so your score won’t be affected.
