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LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Secured Type Early Exit Fee Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
6.49% p.a.
7.62% p.a.
$391
Variable
Secured
–
$8
$400
$23,474
  • Available for Home Owners only
  • Available for New or demo caravans
  • Redraw up to $5,000/day for variable rates
 Disclosure
6.49% p.a.
7.69% p.a.
$391
Fixed
Secured
$150
$12
$250
$23,474
6.43% p.a.
6.86% p.a.
$391
Fixed
Secured
$0
$0
$0
$23,440
6.75% p.a.
6.75% p.a.
$394
Fixed
Secured
–
$0
$0
$23,620
6.84% p.a.
7.19% p.a.
$395
Fixed
Secured
$0
$0
$250
$23,671
6.99% p.a.
7.31% p.a.
$396
Fixed
Secured
–
$0
$225
$23,756
7.79% p.a.
8.51% p.a.
$404
Fixed
Secured
$20
$5
$150
$24,211
7.99% p.a.
7.99% p.a.
$405
Fixed
Secured
$0
$0
$0
$24,326
8.24% p.a.
8.90% p.a.
$408
Fixed
Secured
–
$5
$199
$24,470
8.49% p.a.
8.70% p.a.
$410
Fixed
Secured
–
$0
$150
$24,614
8.99% p.a.
9.35% p.a.
$415
Fixed
Secured
$0
$0
$250
$24,904
10.69% p.a.
11.42% p.a.
$432
Fixed
Secured
$0
$0
$499
$25,906
More personal loans
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates are for unsecured personal loans only for the relevant amounts and terms. The comparison rates for car loans and secured personal loans are for secured loans unless indicated otherwise. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Whether it’s for home renovations, a holiday, or even an expensive trip to the dentist, a personal loan can be handy when you need a quick cash burst, as long as it’s the right one for your needs. One key consideration is whether to go for a secured or unsecured personal loan.

What is a secured personal loan?

A personal loan is, in essence, a loan for personal reasons. While a car loan must be used to buy a car, a personal loan can be used for anything from paying for an overseas holiday to a home makeover.

A secured personal loan requires you to use an asset, such as your property, car or a term deposit, as security on the loan. This acts as a security blanket for the lender so, in the case you were unable to repay your loan, they have your asset to fall back on to make up for any losses. Typically, you’ll need to take out a secured personal loan if you’re looking to borrow a large sum of money, as lenders prefer to have this security backing them.

Secured personal loans can also come with lower interest rates than unsecured loans because of the added security. With this in mind, the lender can have more confidence knowing that you will repay your loan and, if not, with the backing of a security to fall back on should you be unable to meet repayments.

Pros and cons of secured personal loans

There are a number of pros and cons that should be considered when weighing up whether to take out a secured personal loan.

Pros

  • Lower interest rates: Secured personal loans often have lower interest rates than unsecured loans because there is less risk of loss for the lender

  • Potential to borrow larger amount: You can generally borrow more with a secured personal loan

  • Fewer fees: You may also find that secured personal loans have fewer or no fees when compared to unsecured personal loans

Cons

  • Your asset is on the line: The biggest obvious con about secured personal loans is that you could stand to lose your asset if you cannot meet your repayments

  • Must meet requirements: Depending on what you want to use as your collateral, there may be certain requirements from your lender. For example, if you are using a car as collateral, it may need to be relatively new or worth a certain amount of money

  • Less flexibility: Secured personal loans are generally pretty strict about what you use the funds for. For example, if you took out the loan for home renovations, but they ended up costing less than you thought, you can’t just use the remainder to treat yourself to a holiday.

Secured vs unsecured personal loans

Before you decide whether a secured personal loan is right for you, consider the differences between secured personal loans and unsecured personal loans.

Secured personal loans

Unsecured personal loans

  • Security on the line: You must offer an asset as security

  • Lower interest rates: Interest rates will often be lower

  • Higher loan amounts: You can usually borrow more with a secured personal loan

  • Longer repayment terms: You will likely be given a longer period to pay back your loan

  • Strict: You will need to provide an eligible asset, and spend the money borrowed only on what you borrowed it for

  • No asset required: You don’t need to have an asset as security

  • Higher interest rates: Since you have no security on the loan, your interest rate will likely be higher

  • Lower loan amounts: You may be limited in how much you can borrow

  • Shorter repayment terms: You will likely have a shorter repayment window than with a secured personal loan

  • Flexible: You can usually spend the money more freely

From this brief comparison, you may find that secured personal loans are better suited to large, one-off purchases. By knowing exactly how much the goods or services cost, you won’t be left with too much or too little leftover. On the other hand, an unsecured personal loan may be better for a smaller expense, like an overseas holiday. This way, if there’s any money leftover after you’ve funded your personal endeavour, you can just spend the remainder on something else, or start paying back the loan.

Fixed vs variable interest rates

Secured personal loans will typically offer two interest rate options - fixed or variable interest rates.

Fixed rates are typically higher than variable rates, but once you have your rate, it will remain the same throughout the duration of your loan. This means you know exactly how much your repayments will be each month, as well as how much interest you will pay back overall. This can be helpful for budgeting and planning reasons.

On the other hand, variable rates will usually be slightly lower than the fixed rates available. However, variable rates may change throughout the life of your loan depending on a number of factors - particularly the cash rate and associated market activity. While it may end up being lower than a fixed rate to begin with, if interest rates rise, you could end up paying more. If interest rates fall, you will pay even less than the rate you started with. Being variable, the interest rate can be a little less predictable than a fixed rate personal loan, as you don’t know exactly how much you will repay in interest.

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Frequently Asked Questions

Fees will vary between lenders, however some common ones include application fees, ongoing fees, early exit fees and late payment fees.

You can definitely pay off a secured personal loan early, however, whether there are break fees involved in doing so will depend on your lender. You will be able to find any information about early repayments or settlements on your loan contract. Otherwise, you can contact your lender to find out.

Generally speaking, you can borrow anywhere from $2,000 to $50,000 for a personal loan. There are a few lenders that will even offer personal loans of up to $100,000. Each lender is different and your personal situation may affect how much you are able to borrow.

Again, this will come down to the lender you are borrowing through. But to give you an idea, there are a number of assets people generally use as security:

  • New or used car
  • Home equity
  • Term deposit
  • Other valuable assets (jewellery, high-value art, family heirlooms, etc)

Depending on how much you are looking to borrow and who you are looking to borrow through, the asset you can offer as security may vary.

Your lender may not choose to repossess your asset the first time you default on your loan, however, they have the right to. They may let you know beforehand that they will be repossessing your asset, or they may give you a period of time to make up your repayments before they do so.

If your lender decides to repossess your asset, they must send you a written notice within 14 days informing you of a few things:

  • The estimated value of your asset
  • The cost to repossess it
  • Any other costs
  • Your rights and obligations under the National Consumer Credit Code

Your lender can’t sell your asset within 21 days of issuing this written notice. So, if you are able to repay your outstanding balance within this time, you may be able to get your asset back. If you can’t do so within the 21 day period, they may sell your asset to recover their losses.

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Savings.com.au follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts who ensure everything we publish is objective, accurate and trustworthy.

Finance Journalist

Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.