Secured vs unsecured personal loan?

A secured personal loan uses an asset (often a vehicle) as collateral and gets a lower rate. Unsecured loans are quicker and do not risk an asset, but cost more in interest.

What rate should I expect?

Australian personal loan comparison rates typically run 7-20% depending on lender, credit score, secured vs unsecured.

How does a personal loan affect my credit?

The application itself causes a small temporary dip. On-time repayments build positive credit history.

Can I pay it off early?

Most Australian personal loans allow extra repayments and early payoff with no penalty. Check the contract before signing.

Personal Loan Calculator

Australian-tuned. Repayments, total interest, and an honest affordability check.

Loan details

Loan amount

Interest rate (annual %)

Term (years)

Repayment frequency

Your monthly net income (after tax)

Used for the affordability traffic-light below.

Your repayment

per fortnight

Total interest

Total paid

Monthly equivalent

% of monthly net

Enter income to check affordability

Personal loans in Australia — what to know

Personal loans are useful when used surgically (consolidate higher-rate debt, fund a one-off cost). They are punishing when used as ongoing income (rolling deeper into them).

The 30% rule

A common heuristic: total non-mortgage debt repayments should not exceed 30% of net income. Mortgage and rent are separate; this is for car loans, personal loans, BNPL, credit-card minimums, etc.

Watch the comparison rate

Personal-loan headline rates rarely include the application fee, monthly account fee, or insurance. The comparison rate bundles standard fees into a single APR-equivalent so you can compare lenders.

Secured = cheaper, but at a cost

A secured personal loan uses an asset (often a vehicle) as collateral. Rate is usually 2-4% lower. The trade: miss enough repayments and the lender takes the asset.

FAQ

Can I use a personal loan to consolidate credit cards?

Often a smart move — credit-card APRs sit around 19-23%; personal-loan rates are typically 7-14%. Make sure you do not run the cards back up after consolidating.

Will checking my rate hurt my credit?

Most Australian lenders now do a soft check for pre-approval (no credit-file impact). The hard check happens only when you formally apply.

What is the shortest sensible term?

Pick the shortest term you can afford — every extra year of term means thousands more in interest. If repayments at 2 years are uncomfortable, the loan is probably too big.

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Important — general information only, not financial advice.

This calculator is provided for general information and education. It is not financial product advice or credit assistance and does not consider your personal objectives, financial situation, or needs. Outputs are estimates and will differ from a lender's formal quote. Actual interest rates, fees, comparison rates, lender policy, and serviceability assessments vary by lender and change without notice.

Before borrowing, obtain personal advice from a licensed mortgage broker, financial adviser, or accountant who can assess your full circumstances. Past performance and historical interest rates are not a reliable indicator of future outcomes.

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