Written by Finding the right personal loan has never been easier than it is today. Whether you’re looking to consolidate existing debts, fund home renovations or even pay for your next getaway, Savvy’s here to help.
With a panel of trusted Australian lending partners and a team of experienced finance consultants behind us, we’ve been helping everyday Aussies find the right loan deal since 2010. Have the heavy lifting done for you and enjoy expert guidance along every step of the application process when you apply with us!
Why compare personal loans with Savvy?
There's no need to worry about forking out to compare offers. Our service is free, so you can come back whenever you like.
You don't need to worry about sifting through documents and visiting the post office, as they can all be submitted online.
We've partnered with personal loan companies you can trust to ensure your comparison is a high-quality one.
What are personal loans and how do they work?
A personal loan is a flexible finance product that allows you to borrow a lump sum for a wide range of purposes. They’re most commonly unsecured, meaning there’s no asset collateral attached, but many lenders do offer secured loans as well.
They work in the same way as any other standard loan product. When approved, you’re given a lump sum to be repaid with interest and fees over a set period of between one and seven years. This can be done in weekly, fortnightly or monthly instalments. You can apply for your loan online and have your application approved as soon as the same day in some cases.
With a personal loan, you can borrow from as little as $5,001 or as much as $75,000 (unsecured) or even $100,000 (secured). Amounts of $5,000 or lower fall under the cash or payday loan category, which come with their own rules and regulations.
What can you use a personal loan for?
There’s so much you can use a personal loan for. In most cases, you can use unsecured loans however you like, while secured loans may be restricted to the asset you’re buying (such as a car). There are some providers that don’t have these restrictions on their secured personal loans, though. Here are just a few of the things your loan can help you out with:
Debt consolidation
Having multiple debts on different schedules can be difficult to juggle, especially if they have high interest rates. Consolidate them into a single payment with a personal loan.
Home renovations
If you don’t want to eat into your savings to fund improvements to your home, a personal loan allows you to pay your tradies now and chip away at the overall cost at your speed.
Medical expenses
They just have a habit of popping up at the worst times, don’t they? You can take out a loan to clear the expenses your health insurance doesn’t want to cover.
Weddings and honeymoons
As time goes on, weddings certainly aren’t getting any cheaper. If your dream ceremony is just out of reach financially, a loan could help you make it happen.
Travel and holidays
Whether you’re planning a months-long getaway to Europe or trekking around Australia in your caravan, applying for a loan helps you do it your way.
Legal fees
We all know lawyers are expensive. The more work involved, the greater the bill you’ll be up for. Customise your loan to suit your needs and maximise your comfort.
How much interest will I have to pay on my loan?
There’s a lot that goes into determining your personal loan interest rate. First, here are some of the key variables that your lender will look to when determining your rate:
- Your credit score: the better your score, the lower your interest rate will be. Lenders reward applicants with positive credit histories.
- Your income: you’ll also likely benefit from lower rates the more comfortably you can cover your loan repayments.
- Your debts: lenders will consider the debts you're currently paying off and how you've managed them.
- Your employment: lenders look for stability in your job and pay. Maintaining the same job for an extended period can help you out.
- Your history repaying other loans: beyond your credit score, lenders value clear evidence that you can handle loan repayments. Successful personal loan repayments in the past go a long way.
- Whether it’s secured or unsecured: opting for a secured loan will bring with it a lower rate than an unsecured loan.
Beyond the rate itself, it’s also important to be aware of some of the factors that impact your overall interest spend. These include:
- Your loan term: the length of your loan will have a significant impact on how much interest you pay. The longer you take to pay it off, the more you’ll be charged in interest.
- Your repayment schedule: making additional payments above the minimum will reduce the interest you’ll be charged overall.
- Whether it’s fixed or variable: not only are fixed and variable rates set at different levels but they’ll have a big say in how much you pay. Fixing your rate means you know exactly how much you’ll pay, whereas variable rates can fluctuate over time.
Use our calculator below to help you see how much interest you will pay with each repayment or over the life of your loan.
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.
The pros and cons of personal loans
Pros
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Use them how you like
Personal loans are highly flexible. You can use them for just about anything you like, including for multiple purposes within the same loan.
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No loan security required
Most personal loans are unsecured. If you don’t have an asset that meets your lender’s security requirements, that won’t stop you from being approved.
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Tailor your repayments to your needs
You’ll be able to choose the loan term and payment schedule that suits your requirements, down to optional additional repayments.
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Fast online application and approval
One key benefit of personal loans is their speed. Some lenders can turn applications around and have them approved on the same day you apply.
Cons
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Higher interest and fees
Personal loans tend to come with more expensive rates and fees than other loan types, so they may cost you more overall.
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Potentially lower borrowing caps
While car loans sometimes have no upper limit, unsecured personal loans aren’t available for more than $75,000 (some lenders set this limit at $50,000).
How to apply for your personal loan online with Savvy
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Complete our simple online application form
First and foremost, you’ll need to fill out our quick and easy online form. Tell us about yourself, your finances, the loan you’re after and why you need it in just a few minutes.
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Compare your options with Savvy
Once you’ve done this, you’ll be able to assess the products on offer from our partnered lenders. A member of our team will reach out to help you choose the best available offer.
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Send your documents and formally apply
If you’re happy with one of the options available, you can go ahead and formally apply. We’ll handle this for you; simply send the required documents through our online portal and we’ll do the rest.
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Get approved and sign your contract
We’ll let you know when you’re formally approved, which can happen in a matter of hours, and all you’ll need to do is sign your loan contract electronically to receive your funds as soon as the same day.
Personal loan eligibility and documentation
Five key tips for comparing personal loans
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Look at the comparison rate, not just interest
Advertised interest rates only tell half the story. The loan’s comparison rates provide a more accurate indication of the true cost.
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Read the fine print to understand all the fees
It’s always worth reading through all loan documents carefully. If there are any fees hidden in the fine print, you’ll know about them before you sign.
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Prioritise flexibility in your repayments
Most personal loans will allow you to make free additional repayments, but not all offer this. Having this option leaves the door open for potential savings.
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Make sure you’re eligible before you apply
There’s no use wasting time on loans whose criteria you fail to meet. When you apply with Savvy, we’ll only match you with lenders available to you.
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Take the time to consider which option is best
Rushing into things could cost you in the long run. By comparing all your options (or having someone like us do it for you), you can be more confident in your decision.
Common personal loan questions answered
Yes – we’re partnered with specialist lenders who can work with applicants with bad credit. They’re willing to look beyond your score and past finances and focus on your ability to repay your loan now. Speak with your Savvy consultant about your options as a bad credit borrower.
Yes – although they’re most common on home loans, you can still have a guarantor on a personal loan. A guarantor is someone who guarantees the repayment of your loan. This means that if you become unable to pay it off, your guarantor becomes responsible for the remainder of the debt. In most cases, guarantors are parents or grandparents, but they can also be other close friends or relatives.
Depending on the type of benefit you receive, you may still be eligible for a personal loan. Stable and consistent payments such as the Disability Support Payment, Age Pension and Carer Payment can be counted as income by some lenders. Your Savvy consultant will let you know what your options are when you apply with us.
There are several variables at play when it comes to your borrowing power. These include:
- Your credit score
- Your income and expenses
- Your employment stability
- Your assets and liabilities
- Your dependants
If you have a strong credit history and your business doesn’t, using a personal loan to invest may be an option. However, if your business is in a position to get a loan itself, you’re usually better off with a business loan.
Yes – provided you meet all your lender’s criteria and are living on an accepted visa (that ends after the completion of your loan term), you can still be approved for a loan.
Yes – this is known as a joint personal loan. Applying with your partner can boost your chances of personal loan approval, as you’re increasing the funds available to service the loan.
A low doc personal loan is a loan with alternative documentation requirements. They may be sought out by self-employed applicants who don’t have payslips or adequate tax returns, as these often aren’t required. These loans come with higher rates and fees due to the increased risk.
