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How to Get a Personal Loan

Find out how the personal loan process works and how to maximise your chances of approval with Savvy.
Personal Loans Banner - Young woman applying for a personal loan on her phone in a cafe

How to Get a Personal Loan

Find out how the personal loan process works and how to maximise your chances of approval with Savvy.
  Written by 
Thomas Perrotta
Thomas Perrotta is the managing editor of Savvy. Throughout his time at the company, Thomas has specialised in personal finance, namely car, personal and small loans, although he has also written on topics ranging from mortgages to business loans to banking and more. Thomas graduated from the University of Adelaide with a Bachelor of Media, majoring in journalism, and has previously had his work published in The Advertiser.
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Last updated
March 27th, 2025


A personal loan can give you access to the funds you need quickly and easily, but how exactly does the process work? Learn all the ins and outs of applying and getting approved for the loan you're after with us today!

What do I do before I get my personal loan?

There are several key steps that go into the personal loan process before you even start your application. It’s important that you understand these closely to increase the quality of product that you end up signing onto. The things that you should always do prior to commencing your application are as follows:

Calculate your borrowing power

It’s of great importance that you work out how much you can afford to take on with a personal loan before you submit your application. Lenders won’t approve applications that they don’t have full faith in that the prospective borrower will be able to repay the amount they’re asking to be lent.

While there are factors such as your credit score and the nature of your income that’ll influence your borrowing power and can’t really be ascertained by you alone, you can calculate the amount you’d be able to comfortably afford using your monthly disposable income (income minus expenses). Lender will usually stick to loan repayments up to around 30% of this income. You can also use our borrowing power calculator to crunch further numbers.

Decide on the type of loan you want

When you’re looking at different personal loans, you’ll need to consider the type of financing you want to take out in terms of loan security. Unsecured loans are the most common type of personal financing, which don’t require the use of an asset as collateral for the loan. These loans are more accessible for a wider range of people, as not everyone has a suitable asset to be used, and are faster to process as a result of the lack of collateral.

Secured loans do use assets like your car, boat, motorcycle or caravan as collateral for your loan. Adding an extra safety blanket will increase your lender’s confidence in the agreement, which results in a greater borrowing power and reduced interest rate compared to unsecured loans. Consider which of these options best suits you before you apply.

Compare different offers with Savvy

Perhaps the most important part of the pre-application process is to conduct a thorough comparison of personal loans in Australia with Savvy. We make the process of comparing offers simple by breaking each personal loan deal offered by our partners and laying out all the most important information for you to find in one place.

You should be aware of the best ways to compare between different personal loans in Australia, with the key aspects to look out for including:

  • Interest rates: look for the lowest rates where possible to save money over your loan
  • Fees: similarly, it’s important to try to minimise the cost of fees charged, such as the following:
    • Establishment fee: $0 to $595
    • Ongoing fees: $0 to $10 per month
    • Late payment fees: $15 to $35
  • Repayment flexibility: prioritise loans which enable you to make free additional repayments and pay out your loan early without charge
  • Loan terms: ensure that your lender offers the length of loan that you’re most comfortable repaying, with terms from one to seven years

Apply for your personal loan online

Personal loan eligibility and documentation

Personal Loan Top tips

Tips for increasing your borrowing power

Other common personal loan questions

Can I get approved regardless of where I live in Australia?

Our lending partners operate in the online space, so you won’t need to worry about your location in Australia getting in the way of your application. No matter where you live, from far north Queensland to coastal Western Australia, Savvy helps connect you to a lender who can approve you for the funds you need.

How do I find out what I can afford as a borrower?

By applying for pre-approval with us, you can receive an estimation of what you’re likely to be approved for by our lenders based on your expenses and financial situation. You can also use our personal loan repayment calculator to get an idea of the types of loan amounts, terms and interest rates that are within what you can comfortably afford, which can help further inform your decision.

How quickly can I receive my personal loan funds?

The entire process from start to finish is a fast one, with the funds being advanced to you in as few as 24 hours after submitting your application. There are things that you can do to ensure this process runs quickly and smoothly, such as gathering all of the required documentation in advance and applying earlier on in the week (to avoid running over weekends).

Can I use a loan for anything I like?

Just about – personal loans are incredibly versatile and are able to be used for almost any purpose, from covering and consolidating unexpected and urgent expenses like medical and vet bills to helping you expand your home to travelling interstate or overseas. There are some restrictions placed on these funds by some lenders, though, such as preventing you from taking out money for gambling or using it to directly pay off small loans.

Should I apply with a guarantor?

guarantor could help you get approved if you don’t have an extensive borrowing history or can’t quite qualify for the loan you’re looking for on your own. This is someone, primarily a parent or grandparent, in a stronger financial position who guarantees the repayment of the loan. Having a guarantor can increase your borrowing power and lower your interest rate.

Are self-employed workers able to take out a loan?

Yes – even if you aren’t paid via payslips, you can be approved for a personal loan as a self-employed worker. The same application conditions apply to people in this position, with the exception of requiring you to submit your last two years of tax returns instead of payslips. Most lenders will also require you to have been trading for two years before approving personal loan applications.

Am I able to get a personal loan as a temporary resident?

Yes – however, there are fewer lender options at your disposal if you’re applying as a temporary resident. These loans are considered riskier, which means that borrowing ranges are lowered and interest rates are raised. You’ll need to confirm that the type of visa that you’re living on is accepted by your lender and that the length of your loan term is at least a few months shorter than your visa term.

Helpful guides on personal loans

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