CommBank BetterBusiness Loan
- Upfront Fee
- Depends on application and whether or not security provided
- Max. Loan Amount
- $1,000,000
- Loan Term
- 1 to 30 years
Summary
Choose between four interest rate options. To borrow large amounts, you will have to offer security.
The Commonwealth Bank's BetterBusiness Loan offers medium to long-term capital to begin or expand your business. While the maximum loan amount is high, there are borrowing limits if the loan is unsecured. Fees will depend on how much you borrow, but you will be charged an establishment fee and a monthly or quarterly recurring loan service fee.
Details
Product details
| Product Name | CommBank BetterBusiness Loan |
| Min. Loan Amount | $10,000 |
| Max. Loan Amount | $1,000,000 |
| Loan Security | Secured |
| Upfront Fee | Depends on application and whether or not security provided |
| Loan Term | 1 to 30 years |
How does the BetterBusiness Loan work?
You can choose a secured or unsecured loan with a variable interest rate, and add a fixed rate period if you want certainty over your repayments. Secured loans start from $10,000 with terms of up to 30 years, using residential, rural or commercial property as security. Unsecured loans go up to $250,000 over a maximum of 7 years. You can make extra repayments on a variable rate, but not during a fixed rate period.
Features of the BetterBusiness Loan
There are a number of features with this loan, including:
- Three interest rate options to choose from:
- Secured variable rate: from 7.54% p.a., with residential, rural or commercial property as security.
- Unsecured variable rate: from 13.09% p.a., for up to $250,000 over a maximum of 7 years.
- Fixed rate: loan terms of 12 months to 7 years (or up to 10 years for agribusiness customers), with the rate confirmed in your Letter of Offer.
- Two different types of loans to choose from. You can either secure your residential property against this loan in order to get a lower interest rate and a larger borrowing amount or you can choose from the unsecured loan option that allows you to borrow less for a shorter loan term. The unsecured loans have a higher interest rate as there is no collateral being put against the loan.
- Varying interest rates. As listed above, there are a variety of different interest rate combinations available, which is something to keep in mind before applying.
- Varying loan terms. For variable rate loans, the minimum loan term is 12 months and the maximum is 30 years. For other fixed rate loans, the minimum term is 12 months and the maximum is 7 years.
- Varying borrowing limits. For fixed rate loans there is a minimum borrowing limit of $10,000. For residentially secured loans there is a minimum of $100,000.
- Flexible repayment options. This loan offers a variety of repayment options, including interest only, principal and interest, interest in advance (only available on fixed rate loans with a rate that is linked to the market) and a loan redraw option, which allows you to redraw on repayments made ahead of schedule at no extra cost.
How much does the loan cost?
There are a number of fees with this loan, including:
- A one-off loan establishment fee charged when you take out the loan
- A regular loan service fee charged monthly or quarterly
These fees are dependent on how much you decide to borrow and the type of security that is offered on the loan.
How to apply for the BetterBusiness Loan
Ensure you meet the following requirements before applying for this loan directly with Commonwealth Bank:
- You must have a Commonwealth Bank Account.
- You must be over 18 years of age.
- You must not have previously filed for bankruptcy.
- You must have an ABN or ACN.
- For a secured loan you must have a residential property to use as security.
The BetterBusiness Loan offered by CommBank can help expand your business but it's important to consider whether this loan is right for your needs. Compare business loans before making a final decision.
Compare other products from Commonwealth Bank
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