Personal Loans Up To $50,000

Before diving into a significant financial commitment like a $50,000 personal loan, it’s important to consider several different factors which may shape your repayment period. Fortunately, you can compare your personal loan options right here with Savvy to help you choose the best finance deal for your needs. The main areas to consider before applying for your loan are:

Are my loan’s rate and fees affordable for me?

The interest rate and various fees will play a major role in determining the overall cost of your loan. Interest rates in particular are especially important to get right when borrowing a larger sum, as the greater the size of your loan, the more you’ll pay in interest. For example, a five-year, $50,000 loan at 7% p.a. would set you back $9,403 in interest but bumping that rate up to 8% p.a. would increase your interest outlay to $10,829. High interest and fees (which can include an establishment fee of up to $595 and ongoing fees of up to $10 per month) can eat into your borrowing power, as they can notably increase the cost of your repayments, which is why it’s so important to compare your options.

How long will I need to repay my loan?

You should always ensure your lender offers the loan term which best suits your financial goals and situation. For instance, if you only needed a relatively small personal loan and wanted to pay it off as quickly as possible, it’s worth looking at lenders who offer terms as short as 12 months for their loans. This likely won’t be the case for $50,000 loans, though, so you may instead look for lenders who can accommodate terms of up to seven years. Longer terms will also result in a more expensive loan overall, but it’s always worth ensuring you’re comfortable when making your repayments above all else.

Can I pay any of my own money?

Because the interest and fees associated with your finance agreement can cost up to $10,000 or more extra over the course of your loan repayments, you may decide to put forward some of your own savings to subsidise its cost. Paying a deposit towards whatever purchase you have to make is interest-free and can not only reduce the cost of your repayments but also save you thousands across the term. For example, a $50,000 repaid over seven years at 7.5% p.a. would cost you $767 per month and $14,421 in interest. However, paying $5,000 of your own money reduces each of those to $690 and $12,979, respectively. If you’re in a position to do so, it may be well worth paying some of your savings.

Will I be able to pay it off ahead of schedule?

Having a loan as great as $50,000 will likely mean you’ll have given yourself ample time to pay it off. During this period, you may switch to a higher-paying job or pay off other debts in your life which frees up more funds for you to pay down your loan at a faster rate. As such, you should always look to give yourself the flexibility to contribute more than the minimum required and not incur any fees for doing so. For instance, by contributing $100 extra each month after the first year of your $50,000, seven-year loan at 7.5%, you could save over $1,600 and shorten your term by ten months.

Should I apply for a secured personal loan?

Adding security to your loan agreement can boost your borrowing power and reduce your interest rate. This security will come in the form of a valuable asset, most often your car, which acts as collateral for your loan agreement, meaning your lender can repossess and sell it if you become unable to complete your payments (albeit as a last resort). What security does is give lenders more confidence that their money will be repaid, making them more amenable to lower rates and fees. However, lenders are generally strict when it comes to the criteria these assets must meet, such as being within certain age and condition requirements, meaning your car may not be eligible.