When you need some extra money to fund your home renovations, bundle multiple debts into one payment or even to cover the cost of your wedding, a personal loan is a very versatile form of finance that can help you make it happen. Applying for your personal loan isn’t complicated, but knowing how it all works and some of the ways that you can optimise your application can be a great boost through this process.
How to get a 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. This should only take a few minutes.
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Send your documents
We’ll need some documentation to verify aspects of your profile, such as your identity, income and employment. You can do this online via our simple application portal.
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Chat to your Savvy broker
Once we have all the information we need, we’ll get to work comparing offers from our lender panel. Your personal loan broker will give you a call to tell you about the best deal on offer for your profile.
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Have your application prepared and submitted
If you’re happy with the offer we’ve put to you, your broker will prepare your application for formal assessment with your lender. They’ll submit it on your behalf and keep you informed of any updates.
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Get approved and sign off
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 all the required documents electronically. You can receive your funds in your account as soon as the same day.
What to do before you apply for a personal loan
Consider the type of personal loan you need
You’ll have the choice between unsecured and secured personal loans. Unsecured loans are the most common, not requiring any asset collateral. They’re generally more accessible to a wider range of people and can be processed, approved and funded more quickly.
Secured loans do use assets like your car as collateral for your loan and usually come with lower interest rates and higher maximum loan amounts as a result. Consider which of these options best suits you before you apply.
Work out how much you can afford
Although you can’t really work out your borrowing power on your own, as all lenders have their own calculations, what you can do is look at your income and expenses. In doing so, you can work out a rough estimate of the amount of money you have left over, which you can then use to give you an idea of the loan size and term that suits your needs.
Think about the eligibility criteria
There’s little point in applying for a loan if you aren’t eligible. Your Savvy broker will let you know whether you meet the criteria of one of our lenders when you apply with us, but the main points you’ll need to hit are:
- At least 18 years old
- Australian citizen, permanent resident or eligible visa holder
- Employed and earning a consistent income (we work with lenders who can accept salaries as low as over $24,960)
- Have a solid credit score and history (solutions are available for borrowers with bad credit)
- Not bankrupt (discharged bankrupts may be eligible with some lenders)
- Have an active phone number, email and online bank account in your name
Look at the interest rate
The interest rate on your personal loan is the biggest cost factor. It’s worth looking into the different types of interest rates before you apply. Fixed interest rates remain the same across the entire term, meaning you’ll have stability in your payments and be shielded from rate rises. On the other hand, variable rates can fluctuate across the term, which allows you to take advantage of rate drops and usually allows you to pay off your loan early with no fees.
When you apply with Savvy, your broker will match you with the lender on our panel offering the most competitive loan package available that suits your needs.
How much can I borrow with a personal loan?
Unsecured personal loans can reach up to $75,000 with some lenders, while secured personal loans may be available up to as much as $100,000. However, the specific amount you’re able to borrow will depend on a range of factors specific to you and your lender, including:
- Your income and expenses
- Your credit score and repayment history
- Whether you’re a homeowner
- Your outstanding debts, including study loan debts
- Your credit card limits
- Whether you’re applying on your own or with a partner
- The number of dependants you have
- The state, city or town you live in
- The value of your asset security (if you’re getting a secured loan)
Your Savvy broker will let you know how much you’ll be eligible to borrow based on the information you provide us in your initial application.
What documents will I need to get approved for a personal loan?
Although the specific documents required change depending on the lender, most will require you to submit the following:
- Personal details, such as your name, date of birth and address
- Photo ID, such as your driver’s licence or passport
- Your last two consecutive payslips
- Information on your assets (such as whether you own your home) and liabilities (such as other loans)
- 90 days of bank statements may be requested, but not always
When you apply with Savvy, these can all be submitted online via our web portal.
Top tips for maximising your personal loan approval chances
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Improve your credit score
A higher credit score will lead to more trust in you from your lender. Displaying a positive history of repaying similar loans will give them more confidence that you can manage your repayments. Better scores can also lead to expanded borrowing power and lower interest rates and fees.
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Only apply for what you can afford
Think about how much you can realistically afford before you apply. For example, if you earn $1,200 per month after expenses are deducted, a loan with repayments above that won’t be approved. If you apply for more than you can afford but still qualify, your lender will come back with a lower counteroffer.
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Stick to a budget to reduce expenses
Laying out a clear budget before you apply can help you see where your money is going. See where you can perhaps cut back on expenses or lower credit card limits to free up more money each month for your personal loan. The lower your expenses, the more you may be able to borrow.
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Apply with your partner
Adding your partner or another family member as a co-borrower to your application will also boost your chances of approval. This is because joint personal loan applications are seen as a safer proposition, given they rely on two incomes instead of one. Some lenders may even accept a guarantor on your personal loan application, such as a parent or grandparent, to guarantee the repayment of the loan even if you become unable to do so.
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Avoid major life changes where possible
Having long-term, permanent employment suggests that your income stream is less likely to run dry compared to newly casual or self-employed workers, whose hours and pay might fluctuate. Similarly, staying in the one location will reduce the risk of ever-changing rent or mortgage costs.
"Getting all your ducks in a row is really important when it comes to your personal loan. The most common delays in the process are submitting incorrect or incomplete documents and simply not replying in a timely fashion. Being able to chat to your broker when they or your lender need information from you can help your application keep moving along."
The importance of being organised in the application process
