Hoping to buy that new car to make your commute to work easier, or maybe take a few months off work to travel, reset and refocus? Do you perhaps have medical bills you need to pay off pronto, or need cash to plan your dream wedding?

If so, a $50,000 personal loan might be the appropriate solution. But where do you go next, and what are your options? It's time to look at what's available if you're looking for $50,000 personal loans, and how they might affect you. 

 

Find and compare $50,000 personal loans

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7.99%

Fixed

8.62%

Heritage Bank

$1567

36 months

1 year to 5 years

3.58

/ 5
More details

6.75%

Fixed

7.10%

OurMoneyMarket

$1538

36 months

1 year to 7 years

3.81

/ 5
More details

12.69%

Variable

13.56%

NAB

$1677

36 months

1 year to 7 years

2.54

/ 5
More details

10.50%

Fixed

11.38%

ANZ

$1625

36 months

1 year to 7 years

2.80

/ 5
More details

6.81%

Variable

7.80%

P&N Bank

$1540

36 months

2 years to 5 years

3.82

/ 5
More details

12.99%

Variable

13.86%

ANZ

$1684

36 months

1 year to 7 years

2.48

/ 5
More details

12.69%

Fixed

13.56%

NAB

$1677

36 months

1 year to 7 years

2.45

/ 5
More details

Learn more about personal loans

Hoping to buy that new car to make your commute to work easier, or maybe take a few months off work to travel, reset and refocus? Do you perhaps have medical bills you need to pay off pronto, or need cash to plan your dream wedding?

If so, a $50,000 personal loan might be the appropriate solution.

Where can I get one from?

Most well-known banks will offer $50,000 loans to their eligible customers, so your bank of choice is one place to start. Alternatively, you might choose to approach a smaller lender—check out RateCity’s loan comparison page to find potential lenders.

Interest matters

Interest rates for $50,000 personal loans have been known to go as low as 5 per cent and as high as 18 per cent, depending on the lender. It’s important to note that the higher the interest rate, the more you will have to repay.

While fixed interest can be desirable as the rate will remain the same for the duration of the loan regardless of market rates, agreeing to a variable rate will allow you to benefit if the market rate drops.

Secured loans vs unsecured loans

You might notice that interest rates associated with secured loans seem lower than those of unsecured loans.

This is because lenders ask for an asset, such as a car or home, as a guarantee for secured loans—this gives the lender the ability to repossess the asset in question and sell it to obtain the amount owing, if you default on your loan.

Unsecured loans pose more risk to lenders as they do not provide the lender with this security, which is why their interest rates are higher.

Crucial documents

While the documentation requirement of each lender will vary slightly, most lenders will ask you to provide examples of a combination of the following:

Proof of identity

  • Driver’s licence
  • Passport
  • Proof of age card
  • Birth certificate
  • Utility bills

Proof of income

  • Recent pay slips
  • Recent tax returns or financial statements
  • Recent ATO tax notice of assessment

Proof of ability to meet repayment requirements

  • Bank statements
  • Credit card statements
  • Information on any other loans undertaken

If you are hoping to have a $50,000 personal loan approved for purchasing a car, you might have to provide additional documentation such as insurance details and your car’s tax invoice.

Pros and cons

Obtaining a $50,000 personal loan will no doubt assist you to book that extended holiday or buy that new car you need. A personal loan’s interest rate would be much lower than that of a credit card, so if you know you will need some time to pay back the full amount, a personal loan might be the right option for you.

On the flip side, the application process for a personal loan can be quite time consuming. It will also mean added debt, which is not ideal if you already have an excessive credit card debt or a large amount owing on a home loan.

As with any financial decision, it’s important to do your research, compare products and speak to several lenders prior to committing to a loan. Visit RateCity’s personal loan comparison page to find out more about personal loan options which suit your needs.

Disclaimer: This information contained in this article must not be taken as financial advice.

Frequently asked questions

What is an unsecured bad credit personal loan?

A bad credit personal loan is ‘unsecured’ when the borrower doesn’t offer up an asset, such as a car or jewellery, as collateral or security. Lenders generally charge higher interest rates on unsecured loans than secured loans.

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

Do student personal loans require security?

While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, which typically have higher interest rates.

Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will fully or partially guarantee the loan, taking on the financial responsibility if the borrower defaults.

What do single parents need for a personal loan application?

Much like applying for other personal loans, applying for personal loans for single parents will likely require the following:

  • Proof of identity
  • Proof of residence
  • Proof of income
  • Details of assets (e.g. car, home)
  • Details of liabilities (e.g. credit cards, other loans)
  • Loan amount
  • Loan term

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

Can you refinance a $5000 personal loan?

Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

What do single mothers need to apply for a personal loan?

Like other personal loan applicants, single mothers will likely need to provide a few documents to any potential lender, such as personal identification, bank statements (savings, loans, credit cards), proof of address, and proof of income (payslips, tax returns).

Can I get a $4000 personal loan if I’m unemployed or on Centrelink?

Before most providers of personal loans or medium amount loans will approve an application, they’ll want to know you can afford the loan’s repayments on your current income without ending up in financial stress. Several lenders don’t count Centrelink benefits when assessing a borrower’s income for this purpose, so these borrowers may find it more difficult to be approved for a loan.

If you’re unemployed, self-employed, or if more than 50% of your income come from Centrelink, consider contacting a potential lender before applying to find out whether they accept borrowers on Centrelink.

How can I improve my credit rating/score?

Your credit score will improve if you demonstrate that you’ve become more credit-worthy. You can do that by minimising loan applications, clearing up defaults and paying bills on time.

Another tip is to get the one free credit report you’re entitled to each year – that way, you’ll be able to identify and fix any errors.

If you want to fix an error, the first thing you should do is speak with the credit reporting body, which may take care of the problem or contact credit providers on your behalf.

The next step would be to contact your credit provider. If that doesn’t work, you can refer the matter to the credit provider’s independent dispute resolution scheme, which would be the Australian Financial Complaints Authority (AFCA).

AFCA provides consumers and small businesses with fair, free and independent dispute resolution for financial complaints.

If that doesn’t work, your final options are to contact the Privacy Commissioner and then the Office of the Information Commissioner.

Which lenders offer bad credit personal loans?

Several dozen lenders offer bad credit personal loans in Australia. These are generally smaller lenders that aren’t household names.

What documentation is needed for a self-employed personal loan?

Personal loans may require a borrower to provide proof of identity, proof of residence, details of any other outstanding loans (including credit cards), details of assets they own (e.g. savings, car, property), and proof of income.

While borrowers in full-time or part-time employment can often provide payslips and similar documents to prove their income, self-employed borrowers may need to provide other documents, such as bank statements or tax returns, to demonstrate that their income can cover a loan’s repayments.

Are there alternatives to $2000 loans?

If you need to borrow $2000 or less, alternatives to getting a personal loan or payday loan include using a credit card or the redraw facility of your home, car or personal loan.

Before you borrow $2000 on a credit card, remember that interest will continue being charged on what you owe until you clear your credit card balance. To minimise your interest, consider prioritising paying off your credit card.

Before you draw down $2000 in extra repayments from your home, car or personal loan using a redraw facility, note that fees and charges may apply, and drawing money from your loan may mean your loan will take longer to repay, costing you more in total interest.

Is it hard to improve your credit score?

It can be hard to improve your credit score, as it usually requires sacrifice and discipline, but hard doesn’t necessarily mean complicated. Some simple ways you can give your credit score a boost include closing extra credit cards, reducing your credit card limit, pay off any loans and make loan repayments on time.

As a general rule, the lower your credit score, the more remedies you can apply and the greater the scope for improvement.

Can single mothers get personal loans online?

Many lenders offer online applications for personal loans, which can be convenient for borrowers who have busy lives. If you’re not confident your personal loan application will be approved, you may want to consider contacting the lender by email, live chat, phone, or by visiting a branch, to discuss your situation before applying.

How long will I have bad credit?

Most negative events that appear on a person’s credit file will stay in their credit history for up to seven years.

You may be able to improve your credit score by correcting errors in your credit report, clearing outstanding debts, and maintaining good financial habits over time.

What is comprehensive credit reporting?

Comprehensive credit reporting is a system which includes both positive and negative information on a person’s credit file. Before comprehensive credit reporting was introduced, only negative information was included.

How are credit ratings/scores calculated?

Different credit reporting bodies may use different formulas to calculate credit scores. However, they use the same type of information: credit history and demographic profile.

They’re likely to look at how many credit applications you’ve made, which lender the applications were for, what purpose they were for, how much they were for and your repayment record. They’ll also look at your age and postcode. They’ll also look to see if you’ve had any bankruptcies or other relevant legal judgements against you.

Your score can change if your demographic profile changes or new information is added to your file (such as a new loan application) or existing information is removed from your file (i.e. because it has reached its expiry date).