Cheap Personal Loans

Name: Cheap Personal Loans
Creator: Savvy
Published: 2020-12-17T17:21:48+10:30

Home > Personal Loans > Cheap Personal Loans

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Written by , updated on July 4th, 2024

The features and benefits of cheap personal loans

Competitive interest rates

By comparing a wide range of personal loans from reputable Australian insurers, you can pick out the offer with the lowest available rate with confidence.

No-fee options

We’re partnered with lenders who are willing to disregard almost all personal loan fees on their finance deals, enabling you to save hundreds over your repayment period.

Customisable loan terms

You get to decide how affordable your repayments are, with interest-minimising terms as low as one year and cheaper instalment options up to seven available.

Fixed or variable interest rates

Additionally, you can compare personal loan offers which fix their interest rates and those which leave them variable, both of which can save you money in different circumstances.

Free early repayments

Most lenders will also enable you to pay above and beyond the minimum required amount, which could slash your loan term and save you hundreds, if not thousands.

Get approved for up to $75,000

You’ll also get to borrow just about any amount you need, from as little as $2,000 all the way up to $75,000 (depending on your choice of lender).

Secured or unsecured loans

Secured loans can save you much-needed money on interest and fees, but unsecured loans are faster and easier to apply for; you get to choose between the two.

Use funds however you like

Best of all, you can utilise your funds in any way you like: to fund improvements around your home, pay for your wedding or honeymoon or even simply dental expenses.

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.

Cheap personal loans explained

What should you look for to find a cheap personal loan?

The two main factors that you have to take into account when looking for a cheap personal loan are interest rates and any associated fees or charges.

Interest rates

Knowing what to look for in a cheap personal loan can save you both time and money so, before beginning the application process, ensure you’ve done the maths to work out how much you stand to benefit.

Interest Rates: The main factor that determines how cheap a personal loan ultimately is, your interest rate will be calculated based on a number of factors such as your credit score, employment and income stability. The more favourable these are, the lower your rate is likely to be.

Headline Rate: The interest rate you’re charged by the lender for the life of the loan. The headline rate does not take extra fees and charges into consideration.

Comparison Rate: The interest rate you’re charged by the lender, with their primary fees and charges included. The comparison rate more accurately reflects the true cost of the loan, so it's a good idea to use this when calculating personal loan costs rather than solely interest rates.

Fees

Some of the most common fees and charges that you need to look out for include:

Establishment fees: This fee is charged to cover expenses relating to setting up and opening your personal loan, with the cost built into your ensuing repayments. These can cost up to around $600 when charged on a personal loan, but some lenders don't charge these.

Administration/ongoing fees: These are charged on an ongoing basis throughout your loan repayments to cover other administration costs. They're inexpensive at up to just $10 per month when charged, but these can add up over the course of a longer loan term; a five-year loan with $10 monthly fees would end up setting you back around $600 in this area alone.

Early repayment fees: These can apply in certain circumstances when you pay above the minimum and complete your loan payments ahead of schedule. Their cost is calculated based on the time left to run on your loan at the point of completion, but usually aren't charged.

Late repayment fees: These will be charged if you submit an instalment late, typically five days or more after its intended due date. These can vary in cost between $15 and $35.

Finding a loan which strike a balance between the cost of its interest rate and fees is imperative when you’re looking to secure a cheap personal loan.

What else makes a personal loan cheap?

While the interest rates and fees associated with personal loans are the most important, there are some further considerations to be made.

If you really want to find a cheap personal loan, you’re going to have to find one that works best for your specific circumstances. When doing so, considering the following factors will help:

How much you can borrow: Always check how much you’re allowed to borrow at the advertised interest rate. Rates may get higher or lower depending on whether you reach minimums or exceed maximums.

Whether you require a secured or unsecured loan: A secured loan will almost always have a lower interest rate than an unsecured personal loan. Keep this in mind when comparing loans and providers.

How your interest is calculated: Will your loan feature a fixed or variable interest rate? Choosing the right one could keep the total cost of your personal loan down.

The flexibility of repayments: If you plan on repaying your loan early, ensure you won't be penalised for doing so. You’re not going to plan on missing a repayment, but late fees are also worth knowing just in case.

What you’ll need to get a cheap personal loan

To be able to apply for any personal loan, you’re going to have to meet the eligibility criteria laid out by the lender.

To be eligible for a personal loan in Australia generally requires:

You’re at least 18 years old
You’re an Australian citizen, permanent resident, or hold the required visa
Earn at least $20,000 to $26,000 annually from stable income sources

To be able to prove the above, you’re going to need the following:

Driver's licence/passport as proof of identity
Income statements such as your payslips
Information on your current assets and liabilities
A recent utility bill as proof of address
Your online banking details

If your application for a personal loan is approved and you’ve accepted the terms laid out in the offer, you’ll usually receive your loan amount credited on the same day. Just remember that the cheapest personal loan on the surface isn’t always the loan that works out the cheapest overall. Before making a final decision, you should always compare numerous personal loans and take into account the overall costs. That's where Savvy can help you, as we make it simple to compare loans from around Australia by breaking down offers into a simple-to-read format.