Personal Loans
Compare a range of personal loans with Savvy and save with some of the lowest rates on the market.
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Personal loan features and benefits
Compare rates and save
With competitive interest rates available through our trusted partners, you can save hundreds, if not thousands, on your personal loan over your term.
Borrow up to $75,000
You can borrow as little as $2,000 all the way up to $75,000, making your loan suitable for a wide range of purposes tailored to your needs.
Flexible loan terms
You’ll also have the option to dictate the cost of your repayments by selecting a loan term anywhere between one and seven years.
Fast approvals within 24 hours
Once you submit your application, you can receive a response within just 60 seconds and have the money transferred to your account inside 24 hours.
Useful extra features
We can match you with lenders who offer features such as flexible repayment schedules and no early repayment fees to enhance your finance experience.
Fixed or variable rates
Personalised interest rate
Each applicant is given their own unique interest rate for their personal loan based on the loan they’re looking for and their profile as a borrower.
No security needed
Our lending partners offer unsecured personal loans, meaning you won’t have to put forward a valuable asset like your car as collateral for the loan.
Types of personal 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.
Personal loan repayments 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.
What information do I need to apply for my personal loan?
Eligibility
First and foremost, it’s crucial to find out whether you’re actually eligible for your personal loan. Fortunately, our lenders are flexible with their qualification criteria, which helps more Australians apply for financing. The criteria you’ll need to meet include:
- 18 years or older and a citizen or permanent resident
- Holding stable employment and earning at least $20,000 to $26,000 annually
- Having no prior history of defaults or bankruptcy
Credit report
It’s also important to review your credit file prior to submitting your application for financing. Your past borrowing experience is represented by your credit score, which lenders look to as an indication of your ability to repay debts promptly and reliably. The higher your credit score, the more confidence your lender will have in you as a borrower. You can improve your score by paying off outstanding debts and lowering limits on your credit cards. You're free to check your credit report free of charge every three months in Australia.
Documents
One way to speed up the personal loan application process is to have all of your relevant documents on hand before submitting. These include:
- Personal ID in the form of your driver’s licence or passport
- Your two most recent payslips, or your last two years’ worth of tax returns if you’re self-employed
- Proof of address
- Information on any outstanding liabilities such as loans
- May be required to provide your employment contract and 90 days of bank statements
Review fees and charges
Of course, you should always compare the various fees which may apply to your personal loan also. These can include:
- Ongoing fees: $0 to $10 per month
- Establishment fee: $0 to $595
- Early repayment fee: up to $600 to $900, depending on loan size and term
- Late payment fees: $15 to $35
Personal loans Australia
What are personal loans and how do they work?
Personal loans are one of the most common types of finance in Australia. They enable borrowers to be approved for a lump sum of money which can be used essentially for any purpose they wish, with some of the most common reasons listed above. They work in the same way as any other standard loan product: you’re given a lump sum which is to be repaid in either weekly, fortnightly or monthly instalments over a set period of between one and seven years.
On top of your repayments, you’ll be required to pay interest, which is calculated daily based on your outstanding loan debt. This means the interest you pay will decrease with each instalment as your outstanding debt decreases. For instance, on a $30,000 at 7.5% p.a. paid monthly over five years, you would pay $187.50 in interest after the first month but approximately $184.91 the next month, due to the fact that your loan principal has decreased.
How much can I borrow with a personal loan?
Personal loans tend to come with a borrowing range of as little as $2,000 up to a maximum of $75,000, although some lenders will cap this at $50,000 instead. This only applies to unsecured finance, though, as secured loans can be taken out for as much as $100,000 (depending on the value of your attached asset). However, there’s a range of factors which can impact your individual borrowing power beyond the type of loan you take out. It’s important to be across these before diving into your application. The main variables to consider are:
- Your income: of course, you’ll need to be earning enough to support your loan repayments. In most cases, higher income-earners will be capable of borrowing more than lower income-earners.
- Your expenses: income can only get you so far, though, as your regular expenses will eat into your usable funds. Whether they be other loan repayments or costs such as utilities and shopping, these will have an impact on the amount you can afford each month and your approved loan amount as a result.
- Your credit score: the better your score, the more likely you are to be approved for a larger sum. Lenders view credit scores as an indication of your reliability as a borrower, particularly if you’ve successfully repaid similar loans previously, so they’ll feel more confident in approving an application for a greater amount.
What types of personal loan can I choose from?
There are several different types of loans you can choose from when considering your options with Savvy. It’s important to know the differences between each product before you apply, as one may be more suited to your needs than the others. These loans are:
| Fixed rate loan | Unsecured loans | Secured loans | |
|---|---|---|---|
|
Borrowing range: |
$2,000 to $75,000 |
$2,000 to $75,000 |
$15,000 to $100,000 |
|
Key benefits: |
Repayment stability, protected against rate rises
|
No need for asset collateral, rapid processing time |
Lower interest rates, greater borrowing power |
|
Key drawbacks: |
Miss out on rate decreases |
Slightly higher rates than secured, can come with higher fees |
Eligible asset required, higher minimum amount |
|
Useful if: |
You’re looking for certainty and accurate budgeting around repayments |
You need a loan approved fast without any risk of losing an asset if you default |
You can use your car or another asset to reduce the cost of your loan |
How much will different interest rates cost me?
Interest rates are crucial factor to consider when deciding on which loan is right for you. Even small differences in interest rates over the course of your loan term can result in a significant difference overall. The below table demonstrates the impact interest can have on a $30,000, five-year loan each month and overall:
| Interest rate | Monthly repayments | Overall interest paid | Total saving |
|---|---|---|---|
|
7% p.a. |
$594.04 |
$5,642.16 |
N/A |
|
6.5% p.a. |
$586.98 |
$5,219.07 |
$423.09 |
|
6% p.a. |
$579.98 |
$4,799.04 |
$843.12 |
|
5.5% p.a. |
$573.03 |
$4,382.09 |
$1,260.07 |
*Calculations do not include fees. Example interest rates aren’t necessarily reflective of current market rates.
What fees will I have to pay on my personal loan?
On top of interest, most loans come with a set of fees which may apply. However, depending on the lender you choose, some (or all) of these can be waived, potentially saving you hundreds of dollars over the course of your loan. Here’s a breakdown of the fees to look for on personal loans:
| Personal loan fee | Minimum cost | Maximum cost |
|---|---|---|
|
Ongoing monthly fees |
$0 |
$10 |
|
Application fee |
$0 |
$595 |
|
Early repayment fee |
$0 |
$600+* |
|
Late payment fee |
$15 |
$35 |
*Early repayment fees are based on factors such as the size of your loan, your interest rate and the portion of your term left to run. This fee is the most common to be waived by personal loan lenders.
A simple way to compare interest and fees all at once is by looking at loan comparison rates. These are percentage figures which are calculated by adding the cost of your loan’s fees onto its interest rate, giving you a more comprehensive and “truer” indication of the overall cost of your loan. Not all fees will be included in this figure, though, as charges such as early or late repayment fees are conditional on a particular set of circumstances taking place, whereas establishment and ongoing fees are charged (or not charged) regardless.
It's also important to note that personal loans aren’t like home or car loans in terms of your scope to negotiate fees with your lender. While fee waivers are common with larger types of finance on a case-by-case basis, they’re not as common with personal loans. However, by comparing loans and lenders, you may be able to find a loan with lower fees and reduce your overall loan cost.
What else can I use a personal loan for?
You aren’t limited when it comes to how you can make use of your personal loan funds. In addition to some of the reasons above, you might take a personal loan out to fulfil the following purposes:
- alleviate the financial pressure brought on by unexpected or steep medical expenses
- pay for optional procedures such as cosmetic surgeries
- cover veterinary bills for your pet
- cover expenses related to your studies, such as for textbooks or accommodation
- helping you pay for expensive jewellery such as an engagement ring
- ease the burden of pricey school fees
How do I apply for a personal loan?
While the personal loan application process will differ slightly between lenders, it’ll largely remain the same across the board. With more lenders investing in efficient online processing and application portals, there’s never been an easier time for you to submit your forms and get approved. Your application is likely to follow these key steps:
- Compare your options with Savvy: Be safe in the knowledge that you’re choosing the right loan for your needs by comparing a range of offers right here with Savvy before you apply.
- Fill out your lender’s application form: Click through and fill out an application form to let them know about you and the loan you need. You may need to supply initial and supporting documents here.
- Receive approval and sign your contract: Once they’re satisfied with your application, you can sign your loan agreement digitally and return it to have your funds advanced to your account.
What are some of the benefits of online loans?
Comparing and applying for personal loans online can offer a number of benefits, including:
Faster, more convenient processes
Perhaps the most obvious benefit of applying online is the convenience which the overall process brings. This applies to all financiers offering loans in this manner, from the big banks to small private lenders. Having the ability to complete your application from the comfort of your home, either your computer or smartphone, saves you from having to take time out of your day to visit your local branch. With the busy lives that many of us lead, saving even a few hours can make a significant difference to your day or week.
Options beyond the big banks
If you’re sticking to products offered by bank and credit union branches in your city or town, the quality of comparison won’t be nearly as great and you could end up costing yourself hundreds of dollars more overall. The online market is another story, though, with an incredibly wide range of lenders and loan offers open to borrowers no matter where you live. The sheer volume of deals available helps you maximise your chances of finding one which suits your individual needs.
Lower interest rates
The most important way that many online lenders can benefit you is through your hip pocket. Because of their higher overheads, physical institutions such as banks typically charge higher interest rates and fees. It’s a different story for online financiers, though. With no need to cover the cost of maintaining branches or paying a vast number of shareholders, online lenders often have the lowest rates on the market and regularly waive potentially costly fees so you can save on your loan.
Less stringent qualification criteria
In many cases, banks can enforce strict eligibility criteria which can rule out a wide range of people who perhaps don’t line up as the perfect applicants in their eyes. In these situations, you’re more likely to find luck applying for an online loan through a private lender who can accommodate your situation. Self-employed borrowers who don’t have the exact information a bigger lender requires or applicants who have struggled with credit in the past both have options through online financiers.
More personalised service
Finally, banks are built to service a vast range of products and employ efficient systems to ensure that they’re able to cope with extremely high demand. For smaller lenders who specialise in one product and don’t have the same workload, there’s a greater capacity to assess and approve applications on a case-by-case basis and interact with you as a borrower on a more personal level. Many applicants may prefer this when applying for their loan.
How do I choose the best personal loan for my needs?
When finding the best personal loan for you, it’s important to approach the process with a clear understanding of your needs. Applying blindly or without knowing how a personal loan truly works could leave you short on the funds you require or with a greater loan debt than you needed to take out. Consider the following steps to help you pick out your ideal personal loan.
Work out how much you need to borrow and what you can afford
Before all else, you should determine why you need your personal loan and the amount required to cover whatever costs need covering. You may wish to take out a loan to consolidate a range of outstanding debts, renovate your home or simply help you pay for your next family holiday.
The second step here is to crunch the numbers and work out what you can actually afford to take on as a borrower. This calculation can include factors such as your income, expenses, employment, credit score and more in coming up with an approximate number you should be able to comfortably support. You can use Savvy’s borrowing power calculator to give you an estimate of what lenders might be able to approve you for if you were to apply.
With this in mind, you’ll be able to enter the comparison process with more clarity on which lenders are suitable for you based on their potential borrowing ranges. For instance, if you were looking to take out a smaller loan of just $2,000, you’d be able to immediately rule out the lenders who set their minimum amounts at $5,000 or more. The same applies to borrowers who wish to borrow more than $50,000, as only some lenders allow applicants to access that much money.
Decide what type of personal loan you want
There are several types of personal loan, so you should always have a clear understanding of the differences between them. Knowing how they differ from one another will help you decide which is the most suitable for you. The main types to consider are:
- Unsecured personal loans are the most basic and common type of personal finance. You can simply apply for a loan without the need to supply any assets or collateral and generally borrow up to as much as $75,000. Because of the lack of security, these loans are typically faster to be approved and financed, although they tend to come with higher interest rates and fees.
- Secured personal loans do come with the requirement for an asset to be attached to the loan as collateral, meaning this will be acquired and sold to recoup funds in the event you become unable to pay off the loan. This is very much a last resort, though. These loans are characterised by cheaper rates and fees and expanded borrowing ranges up to $100,000, although the time taken to process them may be greater.
- Personal lines of credit differ from standard loans in that you’re approved to withdraw funds up to a set limit whenever you like, rather than receiving and managing a lump sum. You’ll only be required to pay interest on the balance used, albeit often at a higher rate than usual and with other fees for maintaining the account. They also don’t tend to come on set terms, meaning they can be kept open on a revolving basis as long as they’re viable.
Think about the type of interest rate you’d like
There are two types of interest rate which can apply to personal loans: fixed and variable rates.
Fixed interest is the most common on personal loans, locking your rate in from the start and protecting you from any rises in your lender’s rate across your term. They also allow for more accurate and stable budgeting around your instalments.
On the other hand, variable rates can change from month to month in line with the RBA cash rate and how your lender decides to respond to it. While they can allow for savings if rates fall, you may end up paying more and not have the ability to budget as well.
Consider the loan term
Choosing a longer period over which to repay your loan means you’ll be able to reduce the how much you pay for each instalment. This can be useful if you need a large personal loan but aren’t an especially high income-earner, and it can free up funds elsewhere to help you juggle your other expenses. However, be aware that a longer repayment period means more interest and fees. For instance, a $40,000, seven-year loan at 7.5% p.a. would cost over $11,500 in interest alone. Repaying the same loan over five years, will only result in an outlay of just under $8,100, representing a saving of more than $3,400 overall.
Understand different types of lenders
While it’s most important to invest time and effort comparing specific deals, you might also have a preference as to the lender you decide to go with for your loan. Some of the key differences between different types of lenders are as follows:
Banks: the biggest lenders on the market. Banks can provide a wide range of services across all sorts of product areas and some of the bigger ones have advanced, robust customer support systems. However, they can often be the most expensive in terms of personal loan rates and fees, which is one of the most important factors to consider.
Credit unions and building societies: customer-owned or mutual financial institutions often serve as a cheaper alternative to banks, as they come without any need to pass profits onto shareholders (given that they don’t have any). While you still may have branch access, it’s likely to be less than that of a bank and services are also more limited.
Online lenders: the newest entrants into the marketplace, online non-bank financiers have set out to make a difference and offer the most affordable deals to Australians. Because they exist wholly online, there’s never any need for you to visit any branches (which is a negative if you prefer physical locations) with advanced online infrastructures to rival banks in some cases and often come with less stringent lending criteria compared to the banks.
Compare loans with Savvy
Of course, perhaps the most effective way to boost your chances of finding the best loan for your needs is by comparing with Savvy. We’re partnered with reputable lenders from around the country to help you conduct high-quality comparisons and learn at a glance what each financier can offer you as a customer. It’s never ideal to dive into the application process blindly and not know which lender is the perfect option for you, as doing so could potentially save you hundreds of dollars, if not more.
What are non-conforming personal loans and how do they work?
Non-conforming personal loans are a type of personal finance specifically catered to applicants who, as the name suggests, don’t conform to the typical criteria requirements set by lenders as part of the loan process. You can usually find these types of loans through specialist online lenders that are able to cater to more diverse borrower profiles than larger lenders such as banks, which tend to limit their products to applicants with stronger financial positions. There are two main categories when it comes to non-conforming personal loans, which address the two main reasons for individuals seeking this type of finance:
Low doc personal loans
The first reason why you might seek a non-conforming personal loan is that you don’t have the required documentation to apply for a standard personal loan. This is typically the case for self-employed workers, as their income isn’t obtained via traditional means (e.g., PAYG payslips).
Low documentation (low doc) personal loans are designed to afford workers in this position the opportunity to supply alternative documents. In addition to identification documents like passports and driver’s licences, these typically include:
- ABN or ACN: your Australian Business Number or Australian Company Number will be required by your lender to assess the nature of your business and how it operates
- GST: some lenders will require that your business’ revenue has been registered for GST for a minimum of between 12 and 24 months
- Business activity statements (BAS): BAS documents are required for businesses registered for GST, as it helps them record incoming and outgoing funds to determine their GST bill or refund
- Profit and loss statements: a document that lays out your company’s income and expenses, of which your lender may require anything from a quarterly to annual statement
- Bank statements: another method of displaying your company’s finances which your lender is likely to need at least the most recent few months’ worth of. This can be business or personal banking, or both
- Income declaration: a declaration signed by your accountant confirming your income and that it’s true and accurate
These loans come with higher interest rates and fees than standard personal loans, as the lack of more “secure” documents like tax returns and payslips increases the lender’s sense of risk with the loan.
However, the borrowing range for these loans remain the same, with maximum amounts of around $50,000. They can also be turned around quickly because of the less complicated nature of their documents, allowing for fast and easy finance solutions for borrowers.
Bad credit personal loans
The second main purpose someone may require a non-conforming personal loan is due to a bad credit rating. Lenders look to credit scores as one of the most important indicators of your reliability as a borrower, so not having a great, good or fair score can sink a personal loan application before you’ve even started. Specialist bad credit lenders have entered the market in recent years to remedy that situation, affording individuals in need of financing access to funds.
In terms of their structure, these loans are essentially the same as other personal loans. As part of the application process, your credit history will be assessed, which is primarily done to ascertain your current financial situation and any recent defaults to determine whether you’re capable of servicing the loan.
Like low doc loans, bad credit personal loans are seen as being riskier for the lender, which in turn leads to an increase in their rates and fees. Borrowing power is also decreased significantly: bad credit borrowers will only have access to a maximum of $10,000 in loan funds and can typically repay them over a maximum of two to three years.
Despite all of this, though, these loans present as one of the most viable options for people with bad credit looking for flexible finance solutions.
Apply for your personal loan online
Compare your options with Savvy
Assess the products on offer from our partnered lenders and choose the option that’s most affordable and suited to your needs.
Submit your application and documentation
Once you land on your lender’s site, you can gather up your required documents and submit digital copies of them alongside your lender’s form.
Receive an outcome and sign your agreement
After you’ve been approved, your lender will send through a copy of your loan agreement for you to sign electronically, from which point you can receive your funds.
The pros and cons of personal loans
PROS
Bring your financial goals within reach
You may not be able to achieve your financial goals on your own or save up enough in time, but a personal loan can help you do so and pay it off at a manageable pace.
Customise your ideal repayment schedule
With flexible available loan amounts, terms and schedules, you can tailor your loan’s repayments to suit your personal preferences for how to pay off your debt.
Use them how you like
Unlike other, more rigid types of finance, personal loans are designed to be highly versatile in how they can be used, meaning you can essentially distribute your funds how you wish.
Often cheaper than credit cards
Credit cards generally come with steep interest rates and fees which apply if you can’t pay them off within a month, so personal loans are often more suitable for larger purchases.
Can boost your credit score
If you’re able to keep up with your repayments without much trouble, or even pay off your debt ahead of schedule, you can improve your credit score further.
CONS
Potentially high rates and fees
You may find some personal loans come with high rates and fees, but it’s important to compare your options to lock in the cheapest deal available to you.
Impact your credit score if you can’t repay
In the event you’re unable to keep up with your required repayments, your credit score will be negatively affected and your asset could be repossessed and sold on a secured loan.
Lesser borrowing power than other loans
While you probably won't have any real cap on the maximum value of a car or home loan, personal loans are more restrictive in this regard (albeit still useful for large amounts).
Top tips for increasing your borrowing power
Improve your credit score
The higher your credit score, the more trustworthy you’ll be seen to be by your lender. Displaying a positive history of repaying similar loans will give them more confidence in your ability to service the loan you’re applying for. An increased score can not only lead to expanded borrowing power but also lower interest rates and fees.
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 it’s seen as a safer proposition to have two borrowers on an application compared to one, as there’s an in-built backup if one of the applicants loses their job which isn’t present on single applications.
Stick to a budget to reduce expenses
Laying out a clear budget before you apply can help you see where your money is going. By taking the time to consider this and determine where you can perhaps cut back on expenses or lower credit card limits, you’ll be able to free up more money each month to dedicate to the repayment of your personal loan, which then increases your borrowing power.
Try to avoid job changes and moving houses
Lenders always look for borrowers who can display a clear level of stability in their lives. Having long-term, permanent employment suggests that your income stream will be stable and less likely to run dry compared to recent casual or self-employed workers. Similarly, staying in the one location will reduce the risk of fluctuating rent or mortgage costs.
Frequently asked personal loan questions
Helpful personal loan guides
Still looking for the right personal loan?
Read more about the ways you can use personal loans, as well as how they might work for you, with us.
