No matter what you plan on spending the money on, if you are borrowing $10,000 there are a few things you’ll need to know about personal loans and developing good money habits. Read on as we answer some of the most FAQs below.
What will my monthly payments be with a $10,000 loan?
Calculating the monthly repayments on a $10,000 personal loan depends on a few important factors, like the loan term and interest rate as well as any fees. This is why it’s so important to shop around for an interest rate - whether it be fixed or variable - that is among the most competitive in the market. Our repayments tool above allows you to plug in your exact loan details to get an indication of the monthly repayments you’ll have to make with any of the loans listed in our tables. An alternative option is to use our personal loan repayments calculator.
What is the best loan term for a $10,000 loan?
Personal loan terms can be as short as one year or as long as seven - or in more extreme cases can span as long as 10 - and whether you choose to pay your loan off over one year, two years or five years will have an impact on how much interest you accrue. The rule of thumb is the longer the loan, the more interest you’ll pay, but the smaller your monthly repayments will be. Let’s look at an example to help get your head around this equation.
LOAN X - A $10,000 personal loan at 8.00%, paid off over seven years accrues $3,092 in interest and the monthly repayments are just $156.
LOAN Y - A $10,000 personal loan at 8.00%, paid off over two years accrues just $855 in interest but the monthly repayments are $452.
Of course, with any loan or credit card, you want to avoid unnecessary interest charges and while a choosing a shorter loan term can help you do that, it’s important you don’t overstretch your budget, leaving you with regular repayments you simply can’t make. So to help you decide what loan term your budget can handle why not run a refresh using our budget calculator to help crunch the numbers.
One of the other important factors to consider is that many loans will let you make extra repayments so if you do find that you’ve taken out a longer loan term, but can afford to make higher repayments than what’s required you should. Every extra dollar you put into the loan is less interest you’ll have to pay.
I need a $10,000 loan fast. What are my options?
If time is of the essence in your hunt for a $10,000 personal loan, one option is a peer to peer lender. Not only do these lenders offer competitive rates and terms on their personal loan products, in most cases they approve loans on the same day you apply, meaning you can have the funds in your Australian bank account by the end of the day. If you want to find out a little more about these new kids on the block, check out our guide to peer to peer lending.
But if you want to stick to a more traditional lender or financial institution, there are still a range of big banks and credit unions that, with their online application and approval processes, can provide conditional approval in a matter of minutes and have the much-needed cash sent to you within 48 hours.
Is a credit card better for a $10,000 loan than a personal loan?
It all comes down to the interest rate you’ll be paying on that $10,000 loan and for how long and what you are using the funds for. If you are using the money to buy something new like a car, holiday etc, there are a number of low rate credit cards with interest rates below 10% and these could be a good option if you are diligent in paying down the balance each month (and not adding to it). The benefit of a personal loan is that you do have set monthly repayments so you are unlikely to have your debt linger around for a longer period of time than required.
If on the other hand, you’re thinking about a personal loan to consolidate your credit card debt, you could consider getting a 0% balance transfer period on a credit card.
Should I get a fixed rate loan on $10,000?
Generally speaking, fixed rate personal loans have slightly higher interest rates than their variable rate alternatives, but with a fixed rate loan you have the certainty of a set repayment amount for the duration of your loan. Knowing your exact repayments can be a real benefit to managing a budget. You’ll generally also be able to make extra repayments with fixed rate loans though there may be a cap on how much.
What’s the difference between the interest rate and the advertised comparison rate?
Shopping around for a $10,000 loan is made a whole lot easier with Mozo’s comparison tables, but you’ve probably noticed that we list both the interest rate and comparison rate beside each product. While finding the lowest interest rate possible is a good idea when you shop around, it’s also important to see how comparison rates stacks up. The comparison rate takes into account the fees on that particular product along with the interest rate, so you get a more accurate idea of the true cost of a loan.
I run my own small business. Can I get $10,000 loan?
If you are looking for business financing then head on over to our business loan section. This page is for personal loans whereas the loans featured in the business section are for businesses and include specialist providers who only deal with small business lending.
So if you own your own business why not head over to our business banking hub to explore a range of financing options to help your small business thrive.
Is $10,000 the maximum you can borrow?
Personal loan amounts can vary depending on how much you need to spend, so don’t feel like you’re tied to a $10,000 loan if it’s not exactly what you need. In fact, most lenders will accommodate loan amounts from as little as $1,000 to as much as $70,000 which means that no matter what you need to fund - whether it be a home reno or medical emergency - you can get the right amount of cash for you.
What do I need to apply for a loan?
Most lenders now offer online loan applications so you can get started today by clicking through to a providers site via the blue ‘go to site’ buttons in the table above.
From here, it’s important you have a few pieces of essential documents on hand so that your personal loan (or personal loan refinance) application runs as smoothly as possible and also be sure that you meet any eligibility prerequisites. If you’re applying for a $10,000 loan with a provider you don’t have a previous banking relationship with, you’ll have to identify yourself via a driver’s licence or passport as well as prove you’re good for the cash, which means you’ll need the following information on hand:
- Proof of income (recent payslips or tax return)
- List of other assets and liabilities
- Proof of employment
- Loan amount and loan term requested
If you looking for a loan of a different amount, you may want to check out $5000 personal loans, or $50000 personal loans.