How long can I take it to pay off a loan?
The good news is that personal loan terms can be as long as seven years or be as short as one year and many lenders will often let you choose your preferred loan term as long as you can prove you’ll be able to meet the regular payments.
If you’re borrowing $50,000 it’s likely that you’ll be paying this off over several years and it is better to opt for repayment term that you will be able to comfortably meet than one that puts you under a lot of financial pressure.
For instance, say you get a $50,000 loan with a 10.75% interest rate. Over 5 years, you’ll have a monthly repayment of $1081 according to our personal loan repayments calculator, whereas if you pay the loan off over 3 years, your monthly repayments will jump to $1,631.
It is worth remembering that in Australia these days, most personal loans whether they have a fixed or variable interest rate will allow extra repayments. So if you do find yourself with some spare cash at the end of the month or get an unexpected windfall, you can put this direct into your loan so that you can reduce the time it takes and the interest you’ll have to pay.
Can a $50,000 personal loan be used to consolidate debt?
Absolutely. Getting a debt consolidation loan is a popular option for Australians looking to ditch debt. Debt consolidation loans generally offer lower interest rates than a credit card so they can be a useful way to get out of debt faster. If this is the reason why you’re in the market for a $50,000 loan, why not read our helpful guide to personal debt consolidation loans.
Can I get an unsecured personal loan for $50,000?
Yes, as long as your credit history stacks up you’ll be able to get an unsecured loan for $50,000 with some lenders, but you might have to pay higher interest rates than if you were getting a secured loan.
Are fixed rate loans better than variable rate loans?
The best loan for you will depend on your financial circumstances. For some people, knowing exactly how much their loan repayment will be each month is best so they generally opt for a fixed rate loan. If you think your budget can handle fluctuations in repayments, then a variable rate loan could suit you more.
With a $50,000 loan however, the cheaper your interest rate the less money you will need to pay, so when comparing loans you should definitely look for a loan with a low rate. Be sure that you compare loans on comparison rate, as this rate combines the interest rate with fees, so it gives you a more realistic indication of the true cost of a loan.
While generally you’ll be able to make extra repayments these days with both fixed rate and variable rate loans, just be aware that fixed rate loans sometimes will have break fees if you pay the loan out too early.
What else should I look for in a personal loan?
A low interest rate aside, there are a few personal loan features worth seeking out so that you can be sure you’re choosing a cost-effective option that you’ll be able to successfully pay off the $50,000 within the loan period.
- Low fees: Application or upfront fees might be hard to dodge when you’re looking to borrow $50,000, but there are plenty of loans available that come without ongoing service fees so be on the lookout for those. The less money you pay in fees the more money you have to go towards paying down your debt
- Flexible repayments: An easy way to make sure you never miss a personal loan payment is to match up your repayment schedule with your pay cycle
- Extra repayments and redraw: Most variable rate loans and fixed rate loans will allow you to make extra repayments. Some loans will also have a redraw facility so that if you do get a head on your repayments and you then need some extra cash you can withdraw it.
Are there any restrictions how I spend the money?
In most cases you’ll be able to use your fresh $50,000 personal loan whichever way you like. Some people opt to put it towards crushing debt, others choose to book flights and accommodation for an upcoming holiday and some use the money to finally secure a dream car or boat. All you have to do is indicate how you plan on spending the money when you apply, but usually you’ll be able to use it for any means you like.
How do I apply for a $50,000 personal loan?
Once you’ve selected the lender and loan that you’re interested in, you’ll need to submit an application. Every lender has different lending criteria but generally you will need to submit the following information:
- Proof of ID (driver’s licence or passport)
- Proof of income (recent payslips or tax return)
- List of other assets and liabilities
- Proof of employment
- Loan amount and loan term requested
Most of the lenders listed here on Mozo take online applications so by clicking on the “go to site” button, you’ll be taken directly to the lender’s website where you can complete your application.
If you're looking for a loan of a little lower amount, check out $5000 personal loans and $10000 personal loans.