A $50,000 personal loan can give you the flexibility to cover a major expense, whether that's a large renovation, wedding or consolidating multiple debts. However, it's also a significant financial commitment. Before you apply, it's worth looking at the repayments, total interest and how the loan would fit alongside your other expenses.
How much will my $50,000 personal loan cost?
If you’re considering taking out a personal loan for $50,000, the headline amount is only part of the picture. The rate you receive, the term you choose and any fees attached to the loan will all affect your repayments and the final cost.
Interest rate
On a larger loan, even a relatively small difference in interest rate can add thousands to what you pay back overall.
For example, here’s how the cost of a five-year, $50,000 loan changes at different rates:
| Interest rate | Monthly repayment | Total interest | Extra interest vs 6% |
|---|---|---|---|
| 6% p.a. | $967 | $7,998 | – |
| 7% p.a. | $990 | $9,404 | $1,405 |
| 8% p.a. | $1,014 | $10,829 | $2,831 |
| 9% p.a. | $1,038 | $12,275 | $4,277 |
| 10% p.a. | $1,062 | $13,741 | $5,743 |
| Calculations are for illustrative purposes only. Interest rates may not be reflective of the rate you’re offered on your personal loan. | |||
A rate of 7% p.a. rather than 6% p.a. would add around $23 to the monthly repayment, but more than $1,400 in extra interest over five years. At 10% p.a., your monthly repayment would be almost $100 higher, with the total interest bill increasing by more than $5,700.
Your financial position will play a big part in the rate you’re offered, including your credit score, income, existing debts and whether you choose a secured or unsecured loan.
Fees and comparison rate
The interest rate tells you how much you’ll be charged for borrowing, but it doesn’t always show the full cost of the loan. Establishment and ongoing fees can add a significant amount over several years, meaning a loan with a lower advertised rate could still cost you more overall.
When comparing loans, it’s worth looking at the comparison rate, which combines the interest rate with most standard fees to give you a better idea of the true cost.
For example, two $50,000 loans over five years could look like this:
| Loan A | Loan B | |
|---|---|---|
| Interest rate | 6.00% p.a. | 6.50% p.a. |
| Comparison rate | 6.90% p.a. | 6.50% p.a. |
| Total cost over five years | $59,193 | $58,699 |
Despite having the lower advertised interest rate, Loan A costs almost $500 more overall once its fees are included.
Loan term
With a $50,000 loan, stretching the term out can make the repayments easier to manage, but it also means paying interest for longer, making your loan substantially more expensive overall.
Here’s what that could look like on a $50,000 loan at 7% p.a.:
| Loan term | Monthly repayment | Total interest | Total cost |
|---|---|---|---|
| 3 years | $1,544 | $5,579 | $55,579 |
| 5 years | $990 | $9,404 | $59,404 |
| 7 years | $755 | $13,389 | $63,389 |
| Calculations are for illustrative purposes only and assume monthly repayments with no fees or other charges. | |||
Extending the loan from three years to seven years cuts the monthly repayment by almost $800, but adds more than $7,800 in extra interest. If you can comfortably afford the higher repayments, choosing a shorter term can save you thousands over the life of the loan.
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 |
Will I be approved for a $50,000 personal loan?
Whether you’re approved for the full $50,000 will depend on a number of factors, including your income, regular expenses, existing debts and credit history.
Even if your income comfortably clears a lender’s minimum requirements, they’ll look beyond your salary alone. Two people earning the same amount can have very different borrowing power depending on their rent or mortgage, credit card limits, existing loans, dependants and other regular expenses. The more of your income that’s already committed each month, the less capacity you’ll generally have to take on a $50,000 loan.
Your credit score and repayment history can make a big difference too. A strong credit profile shows lenders that you’ve managed debt responsibly in the past, which can improve your chances of being approved for a larger amount and may also help you qualify for a lower interest rate. On the other hand, missed repayments, defaults or a high level of existing debt can limit how much a lender is willing to offer and potentially result in a higher rate.
Tips to improve your borrowing power
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Strengthen your financial profile
Paying bills and existing debts on time, reducing credit card limits and keeping other borrowing under control can help your credit profile and free up more of your income for repayments.
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Show stable income and employment
A consistent income and steady employment can give lenders more confidence that you’ll be able to keep up with repayments over the loan term.
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Consider a joint application
Applying with a partner may increase the income available to support the loan, although both applicants will be responsible for repaying the debt.
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Look at whether a guarantor is an option
Some lenders may allow a guarantor to support an application, although availability and requirements vary and the guarantor takes on a significant financial responsibility.
What can I use my $50,000 personal loan for?
A $50,000 personal loan gives you the flexibility to cover a much larger expense than a smaller loan would typically stretch to, without needing to secure it against an asset. Common uses include:
- A large-scale home renovation, such as a kitchen or bathroom overhaul
- Debt consolidation, combining multiple smaller debts into a single, more manageable repayment
- A larger wedding with a big guest list or a more elaborate venue
- Major medical or dental treatment not covered by Medicare or private health insurance
- Substantial legal fees, such as a family law dispute or civil proceedings
- A holiday for the whole family, or a once-in-a-lifetime luxury trip
Should I consider a secured personal loan to borrow $50,000?
Offering an asset such as a car as security can strengthen your loan application, particularly when you’re looking to borrow a larger amount. It can also mean a higher borrowing limit and a lower interest rate than you may get with an unsecured loan.
If you’re borrowing $50,000 specifically to buy a car, caravan or another eligible asset, that purchase can often be used as the security itself. Because this reduces the lender’s risk, secured finance can be a cheaper way to borrow.
The trade-off is that the lender can repossess and sell the asset if you’re unable to keep up with your repayments. Lenders can also be particular about what they’ll accept as security, with requirements around things like age, value and condition, so it’s worth checking whether the asset will qualify.
Why apply for a personal loan with Savvy?
How to apply for a $50,000 personal loan with Savvy
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Complete our online form
Tell us about yourself, your finances and the loan you’re after.
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Provide your documents
Upload the required documents securely through our online portal.
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Get matched with a lender
We'll walk you through your options for a $50,000 personal loan.
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Submit your application
We'll prepare and submit your application to your chosen lender.
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Receive your $50,000 loan
Once approved, we’ll handle settlement and your $50,000 loan will be transferred to you.
Personal loan eligibility and documentation
Eligibility
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Age
You must be at least 18 years of age
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Residency
You must be an Australian citizen or permanent resident (or, in some cases, an eligible visa holder)
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Income
You must be earning a stable income that meets your lender’s minimum threshold (this can start from as little as $20,000 per year)
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Employment
You must be employed on a permanent, casual or self-employed basis
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Credit score
You must meet your lender’s minimum requirements related to your credit score and not be bankrupt or under a Part IX debt agreement
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Contact
You must have an active phone number, email address and online bank account in your name
Documents
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Personal information
Your full name, date of birth, address and contact details
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Photo ID
Such as a driver's licence or passport
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Payslips
Your last two consecutive payslips (or your last tax return if you're self-employed)
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Assets and liabilities
Information about any assets you own (such as a car or house) and liabilities in your name (such as other loans)
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Bank statements
90 days of bank statements may be requested, but not always
