📊 Personal Loan Calculator Australia

How Personal Loans Work in Australia

Australian personal loans are typically unsecured (no collateral required) with fixed interest rates. Loan terms range from 1 to 7 years, and rates vary based on your credit score, income, and the lender.

• Unsecured Personal Loans: No collateral needed. Rates typically 7-20% depending on credit score. Loan amounts $2,000-$75,000.
• Secured Personal Loans: Backed by an asset (car, property). Lower rates (5-12%) but risk of asset repossession if you default.
• Fixed vs Variable: Most personal loans are fixed rate — your monthly payment stays the same for the entire term.
• Fees to Watch: Establishment fees ($150-$600), monthly account-keeping fees ($5-$15), and early repayment fees.

Tips for Choosing the Best Personal Loan

• Look at the comparison rate — it includes fees and gives the true cost
• Choose the shortest term you can comfortably afford — you'll pay less interest overall
• A lower interest rate on a longer term may cost more in total than a higher rate on a shorter term
• Check if the lender charges early repayment fees before signing
• Improve your credit score before applying — a higher score gets you lower rates