Question 1

How much are repayments on a $15,000 personal loan?

Accepted Answer

At a 10% interest rate over 5 years, monthly repayments on a $15,000 personal loan are approximately $319. Fortnightly repayments would be around $147 and weekly repayments around $74. The total interest paid over the life of the loan would be approximately $4,121.

Question 2

What is a good interest rate for a personal loan in Australia?

Accepted Answer

In Australia, a good personal loan interest rate is between 6% and 10% for a secured loan, and between 8% and 14% for an unsecured loan. The rate you receive depends on your credit score, income, employment status, and whether you offer security (such as a car). Always compare the comparison rate, not just the advertised rate, as it includes fees and charges.

Question 3

Should I choose a shorter or longer personal loan term?

Accepted Answer

A shorter loan term means higher repayments but significantly less total interest. For example, a $15,000 loan at 10% over 3 years costs about $2,375 in interest, while the same loan over 7 years costs about $5,850 in interest. Choose the shortest term you can comfortably afford to minimise your total cost.

Question 4

What is the difference between a secured and unsecured personal loan?

Accepted Answer

A secured personal loan is backed by an asset (like a car or term deposit), which reduces the lender's risk and typically results in a lower interest rate. An unsecured loan has no collateral, so the lender charges a higher rate to compensate for the additional risk. Secured loans often have rates 2-5% lower than unsecured loans.

Question 5

Can I pay off a personal loan early in Australia?

Accepted Answer

Yes, most personal loans in Australia allow early repayment. However, some fixed-rate loans charge an early repayment fee (also called a break cost or early termination fee). Variable rate personal loans generally have no early repayment penalties. Paying off your loan early can save you significant interest — check your loan contract for any applicable fees before making extra payments.

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