Written by IN THIS GUIDE
Compare personal loans with Savvy today
If you’re on the hunt for the best personal loan deal on the market, it’s important to know where to look. That’s where Savvy can help you out. We’re partnered with trusted lenders from around the country so you can compare market-leading deals with us. Best of all, you can have your application approved and funded as soon as the same day. Get a quote with us today!
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Compare car loans in Australia from various lenders, with interest rates that vary depending on the borrower's credit score and other factors.
| Lender | Interest rate (p.a.) | Comparison rate (p.a.) | Loan amount (AUD) |
|---|---|---|---|
| Plenti | 6.57% - 24.09% | 6.57 - 26.28% | $5,000 - $65,000 |
| Now Finance | 6.75% - 26.95% | 6.75% - 6.95% | $5,000 - $50,000 |
| Liberty | 7.24% - 19.99% | 7.24% - 21.49% | $5,000 - $80,000 |
| Money Place | 6.52% - 19.19% | 6.95% - 20.77% | $5,000 - $80,000 |
| Finance One | 6.52% - 19.19% | 6.95% - 20.77% | $8,000 - $100,000 |
| Resimac | 6.52% - 19.19% | 6.95% - 20.77% | $8,000 - $100,000 |
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.
The types of Personal Loans
What are personal loans and how do they work?
Personal loans are one of the most common and flexible types of finance available. They allow borrowers to be approved for a lump sum of money which can be used essentially for any purpose.
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 in either weekly, fortnightly or monthly instalments. You can apply for these online and have your application approved as soon as the same day in some cases.
How much can I borrow with a personal loan?
Personal loans can come with a borrowing range of as little as $5,001 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 that can impact your borrowing power beyond the type of loan you take out, including:
- Your income: of course, you’ll need to be earning enough to support your loan repayments. In most cases, higher income-earners will be able to borrow 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’re other loan repayments or costs like utilities and shopping, these will have an impact on how much you can afford and your approved loan 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 how reliable you are, particularly if you’ve successfully repaid similar loans previously, so they’ll feel more confident in approving a greater amount.
What’s the difference between fixed and variable interest rates?
The two types of interest rates you can have on your loan are fixed and variable. The differences between them are as follows:
Fixed interest
- Locked in from the start of your loan
- Repayments stay the same, making them better for budgeting
- Protects against rate rises, but locks you out of rate drops
- May come with early repayment fees (but not always)
Variable interest
- Left open to change throughout your term
- Can benefit from rate drops, but vulnerable to rises
- Almost never comes with early repayment fees
- May also allow you to redraw additional funds paid into the loan
How much do personal loans cost?
There’s a range of factors affecting the cost of personal loans. We’ve broken down the main ones in tables so you can see how they work:
Interest rates
| Loan amount | Loan term | Interest rate | Monthly payments | Total interest | Total saving |
|---|---|---|---|---|---|
| $25,000 | Five years | 9.50% p.a. | $526 | $6,503 | N/A |
| $25,000 | Five years | 8.50% p.a. | $513 | $5,775 | $728 |
| $25,000 | Five years | 7.50% p.a. | $501 | $5,057 | $1,446 |
| $25,000 | Five years | 6.50% p.a. | $490 | $4,350 | $2,154 |
Loan amounts
| Loan amount | Loan term | Interest rate | Monthly payments | Total interest |
|---|---|---|---|---|
| $25,000 | Five years | 7.50% p.a. | $501 | $5,057 |
| $30,000 | Five years | 7.50% p.a. | $602 | $6,069 |
| $40,000 | Five years | 7.50% p.a. | $802 | $8,092 |
| $50,000 | Five years | 7.50% p.a. | $1,002 | $10,114 |
Loan terms
| Loan amount | Loan term | Interest rate | Monthly payments | Total interest | Total saving |
|---|---|---|---|---|---|
| $30,000 | Six years | 7.50% p.a. | $519 | $7,347 | N/A |
| $30,000 | Five years | 7.50% p.a. | $602 | $6,069 | $1,279 |
| $30,000 | Four years | 7.50% p.a. | $726 | $4,818 | $2,530 |
| $30,000 | Three years | 7.50% p.a. | $934 | $3,595 | $3,752 |
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.
What fees will I have to pay on my personal loan?
As we’ve mentioned, most loans come with a set of fees. However, depending on the lender you choose, one or more of these can be waived, potentially saving you hundreds of dollars throughout your loan. Here’s a breakdown of the fees to look for on unsecured loans:
- Establishment/application fee: from $0 to $975, charged once and built into your repayments
- Monthly/ongoing fees: from $0 to $15, added to each repayment
- Early repayment fee: from $0 to $500+, depending on factors like the size of the loan, interest rate and time left to run on the loan
- Late payment fee: from $15 to $35, cannot be waived
A simple way to compare interest and fees all at once is by looking at loan comparison rates. This rate adds the cost of your loan’s unconditional fees onto the interest rate, giving you a more comprehensive and “truer” indication of the overall cost.
Not all fees will be included in this figure, though, as early or late repayment fees are conditional (meaning they may not happen to every borrower). In comparison, establishment and ongoing fees are charged (or not charged) regardless.
How do I compare personal loan deals?
Before you hit send on that application, it’s crucial to compare your options. Here’s what you should be looking for:
- Interest rates: you should always try to aim for the lowest rate possible when applying for your loan.
- Fees: as we mentioned earlier, not all lenders offer extensive fees, so try to look for offers without them.
- Comparison rates: compare offers based on their comparison rates to get a more accurate reflection of the cost.
- Available amounts: make sure your lender offers a loan of the size you need, especially if you’re after a particularly small or large sum.
- Available terms: not all lenders offer the full one to seven-year range, so it’s essential to find a lender that can facilitate your preferred term.
- Repayment flexibility: if you want the freedom to pay off your loan early, look for a lender that’ll allow you to do so for free.
- Eligibility criteria: of course, you’ll need to make sure you qualify for the loan you’re after (as well as your asset collateral if you’re applying for a secured loan).
When you apply with Savvy, we’ll do all the heavy lifting for you. A member of our support team will compare the options available and match you with the best available loan for your situation.
Apply for your personal loan online
Personal loan eligibility and documentation
Top tips for increasing your borrowing power
The benefits of taking out a personal loan
Common personal loan questions answered
Unlike a personal loan, where you apply for a certain amount and receive it as a lump sum, credit cards allow you to withdraw up to a set limit whenever you like. This is called a line of credit. You’ll only pay interest on the funds you withdraw and, in many cases, won’t need to pay interest at all if you repay your debt within your card’s interest-free period (usually 30 days).
Credit cards also come without set repayment schedules. This means that you’ll need to be proactive in paying it off as quickly as possible, as the higher interest rates and fees that your card may have could lead to it costing a lot more if you only pay the minimum required amount. Credit cards may also not be an option if you’ve had past credit struggles.
The main types of lenders that you’ll be able to consider are banks, credit unions and online lenders. While banks and credit unions may have more visibility and physical locations, the rates they’re able to offer are generally higher than those through online lenders. Non-bank lenders also tend to have more flexible lending criteria, while banks and credit unions won’t lend to borrowers with bad credit.
Yes – as long as you can show that you’re able to cover your repayments and meet your lender’s criteria, you can be approved as a self-employed individual. This means you’ll need to show a steady and reliable income through at least one year of tax returns. You must also have been running your business for a minimum of 12 months, although some lenders may require at least two years.
Looking for the lowest possible rates and fees is the best way to go about cutting down on the cost of your loan. In terms of how to achieve this, a good credit score, verifiable past borrowing history and stable income with decent savings will all contribute to a lower rate. Aside from this, though, opting for a shorter loan term will raise the cost of your repayments but reduce the interest you’ll pay over the life of the loan.
There’s no one answer to how many personal loans you can have at one time, as it entirely depends on what you can afford to repay each month. Someone with enough money to support two loans can, in theory, apply for a second one after their first. However, not all lenders will approve your application if you’re already paying off another loan.
Applying for a personal loan with a guarantor means you'll be submitting your application with another person in a stronger financial position, usually a parent or grandparent, who essentially agrees to pay off your loan if you become unable to do so.
Because another layer of security is added to your loan, this is another way of expanding your borrowing power. These are typically more useful for bad credit customers and younger borrowers with limited or no previous repayment experience.
No – while you can use this type of finance to consolidate debts under one loan, you can’t take out one personal loan for the sole purpose of directly paying off another (unless you're refinancing existing personal loan debts).
A green loan is a type of personal loan for the purchase or installation of environmentally friendly goods and systems. They typically offer a rate discount as part of the deal to encourage people to improve their “green” habits and help the environment. This may include energy-efficient appliances, solar panels, water conservation systems or even bicycles. Not all lenders offer green loans, though, so you should look to compare those who do if you need a loan for this purpose.
Yes – many financiers offer deals that come with redraw facilities. This is a feature that enables borrowers to withdraw additional funds that have been paid towards their loan debt, meaning they won’t need to apply for another loan to access the funds they need. It’s important to note, though, that redrawing your funds can lengthen your loan term and result in you paying more overall.
Yes – your data will be safe when you apply for financing via your lender’s website and through Savvy. Lenders are required to have highly effective and strong security features for maintaining the privacy of their customers, which is no different from our partnered online lenders.
You can't get funded instantly, but applying for your online personal loan through Savvy is a great way to get a rapid outcome. We can help you get a personal loan to suit your needs as soon as the same day.
No – as we’ve discussed, the fees on your loan could push up the cost of your loan, even if the interest rate is lower. That’s why it’s crucial to compare loans based on their comparison rate, as this will tell you if they’re actually cheaper.
