Compare repayments on $10,000 personal loans

Can you get a $10,000 personal loan in Australia?

Most Australian lenders offer personal loans of between $2,000 and $100,000, so a $10,000 loan falls within the standard range. That said, just because you apply for a certain amount doesn’t mean you’ll be approved for it.

Lenders look at your finances before they approve your application. They check your income, living costs, debts, and credit history to assess how trustworthy you might be as a borrower, and decide how much they are willing to lend you.

Lenders also set their own minimum and maximum loan amounts, which can influence how much you are able to borrow.

Who is eligible for a $10,000 personal loan?

While lenders may assess applications differently, the basic eligibility criteria are usually quite similar. To qualify for a $10,000 personal loan (or most other loan amounts), you’ll generally need to meet these criteria:

• Be aged 18 or over
• Be an Australian citizen or permanent resident (some lenders may consider certain visa holders)
• Earn enough income to cover repayments alongside your existing expenses
• Have stable employment or a consistent source of income
• Have a good credit history

Some lenders may also have specific eligibility requirements, such as minimum income thresholds or credit score expectations. It’s worth checking these before applying. 

How much will a $10,000 personal loan cost?

The amount you’ll end up paying to borrow a certain amount depends on your lender and the product you choose. Based on the interest rate, fees and loan term and whether there are one or two people borrowing, the same amount could end up paying very different total costs.

Here are the key costs to consider:

Interest rate: Loan interest rates can be fixed or variable. A fixed rate keeps your repayments the same over the loan term, while a variable rate can go up or down.  This may change your repayment amount and the total cost of the loan.

Fees and charges: Lenders may charge upfront or ongoing fees, such as establishment or monthly service fees. To understand the overall cost, look at the comparison rate, which includes most fees.

Loan term: Longer terms lower your regular payments but increase total interest. Shorter terms save money overall but mean higher payments each time.

If your lender allows extra repayments without fees and you can afford them, you can cut down the total interest by repaying the loan faster.

What do repayments on a $10,000 personal loan look like?

Your repayments on a loan depend on three main factors: your interest rate, your loan term, and how often you choose to pay. To see how these variables might affect your budget, you can use Canstar’s personal loan repayment calculator. 

This tool allows you to test different scenarios and see exactly how your choices impact both your regular repayment amount and the total cost of the loan.

How your loan term can impact your interest cost

A shorter term increases your regular repayments but cuts down the total interest you pay. Let’s assume you borrow $10,000 at an interest rate of 5.95% per annum (p.a.). Here is how your repayments and total interest change based on how long you take to repay it:

5-year term:

Weekly: $44 (total interest paid = $1,567)

Fortnightly: $89 (total interest paid = $1,573)

Monthly: $193 (total interest paid = $1,586)

3-year term:

Weekly: $70 (total interest paid = $925)

Fortnightly: $140 (total interest paid = $930)

Monthly: $304 (total interest paid = $944)

By choosing a three-year term instead of five, you would pay an extra $111 per month, but you would save approximately $600 in interest over the life of the loan.

How your interest rate can affect your repayments

Lenders typically reserve lower rates for borrowers with a strong credit score. If yours isn’t great and you’re offered a higher rate, you may find yourself paying significantly more than someone with an excellent credit score.

Here is how the same $10,000 loan for a 5-year term looks at a higher rate of 10% p.a.:

Weekly: $49 (total interest paid = $2,717)

Fortnightly: $98 (total interest paid = $2,726)

Monthly: $212 (total interest paid = $2,748)

While the jump from $193 a month in repayments (at 5.95% p.a.) to $212 a month (at 10% p.a.) might not seem like much, it adds up to around $1,100 in extra interest over a five-year term. For larger loan amounts, the difference in cost can be even more significant.

Simple tips to reduce the cost of your loan

Compare your options: Your current bank might offer personal loans, but do they have the lowest rates and fees? Take a few minutes to compare different lenders. It can help you find a better deal and a lower interest rate.

Pay more frequently: Choosing weekly or fortnightly repayments can help reduce your interest costs, as your loan balance reduces sooner. While the difference is fairly small on a $10,000 loan, the gap becomes more noticeable on larger amounts or longer terms.

Improve your credit score: Maintaining a healthy credit score can help you avoid higher interest rates and secure better terms on a loan.

Consider refinancing: If you are self-employed or have a lower credit score, you might initially pay a higher interest rate to borrow money. However, you don’t necessarily need to pay that rate forever. Once your credit score improves, you may be able to refinance to a lower rate.

What should you compare when choosing a $10,000 personal loan?

The comparison table on this page lets you review a wide range of personal loans from our online partners. You can also answer a few quick questions and link your credit score to help us find options you may be eligible for.

When comparing personal loans, consider the following:

Fixed or variable interest rate: A fixed rate means your repayments stay the same over the loan term. A variable rate can rise or fall, so your repayments may change.

Cost of the loan: Check fees and charges associated with a loan to understand its total cost to you. The comparison rate can give a clearer picture of what you’ll pay overall.

Loan duration: A longer loan term usually means you pay more interest over the life of the loan. If you choose a shorter term, it can help you save on interest, but it's important to check that the higher monthly repayments fit your budget. When deciding on a loan term, you can compare how the length of the loan impacts both your regular repayments and the total cost.

Additional features: Some lenders offer additional features, such as extra repayments or redraw facilities, which can help you repay your loan sooner.

How to apply for a $10,000 personal loan?

Once you have compared your options and decided on a lender, you can generally fill an application online to apply for a loan. Some lenders may also allow applications over the phone or in person at the branch. 

To apply, you’ll typically need to provide personal details such as:

• Proof of identity, such as a driver’s licence or passport.
• Proof of income, such as recent payslips or bank statements. If you are self-employed, you may need to provide your last two years’ tax returns.
• Details of your employment–being in a stable job for at least 6 months before applying can strengthen your application.
• Information about your debts and expenses.
• A list of any assets you own, including vehicles and property.
• Information about your household situation, including whether you have any children or other dependants.

Before you apply for a personal loan, read the loan documentation carefully. This helps you understand the features, fees and repayment terms, so you can choose a product that suits your financial situation.