The best of both worlds: How to get a personal loan with repayment stability and flexible repayments.
Fixed rate personal loans offer you a convenient way to finance a personal purchase while guaranteeing you a certain rate during your loan term. However, as personal loan terms extend up to seven years, you may want the option of making extra repayments to your loan. This page is a guide to fixed rate personal loans that allow you to do just that.
So, what's so good about these personal loans?
Fixed rate personal loans lock in your rate for however long your loan term is. This means your repayments remain the same throughout your entire loan term. In exchange for this certainty, many fixed rate personal loans have more restrictive repayments, for example, by not letting you make extra repayments or not letting you repay the loan early.
The loans in this guide are a special case. Not only do they let you lock in a rate for your loan term but they let you make extra repayments throughout your term as well. You might be able to pay off your loan early as well.
I'm not planning on making extra repayments. Why should I consider a personal loan with this option?
Just because you're not planning on making extra repayments right now, say, because you don't have it in your budget, doesn't mean you won't down the track. Most personal loan terms extend up to five or seven years. That is a long time and a lot can happen during this period. You could receive a pay rise, receive an unexpected inheritance or a large tax refund that you can put towards your loan to pay it off sooner. Why not opt for a loan that gives you the option to pay it off sooner and reduce what you pay on interest?
Compare fixed rate personal loans that allow additional repayments
- Low ongoing fees
- Flexible repayment options
- Borrow up to $50,000
100% confidential application
ANZ Fixed Rate Personal Loan
This competitive unsecured fixed rate personal loan from ANZ is suitable for a range of uses. Apply for up to $50,000.
- Interest rate: 12.45% p.a.
- Comparison rate: 13.32% p.a.
- Interest rate type: Fixed
- Application fee: $150
- Minimum loan amount: $5,000
- Maximum loan amount: $50,000
How you can compare your fixed rate personal loan options
If you’re ready to compare your fixed rate loan options, keep the following considerations in mind to help you find the right loan.
- Interest rate. Compare loans to see how competitive the interest rate is. You could hold this loan for a few years so an uncompetitive rate could see you paying hundreds or thousands of dollars in unnecessary interest.
- Fees. Check for upfront fees such as establishment fees that will be added onto your loan principal as well as ongoing fees such as monthly or annual fees.
- Eligibility criteria. Are you eligible for the loan? Minimum age, income and employment criteria will apply.
- Loan type. Is the loan secured or unsecured? If the loan is secured, do you have an eligible asset you can use as a guarantee?
- Loan amount and terms. Find a loan that offers the funds you need with terms that make the repayments affordable on your budget.
Weigh up the benefits and drawbacks of these loans
- Know what your repayments will be each month
- Repay more than your regular repayment if you can to pay your loan off sooner
- You still may not be able to repay the loan early without penalty
- You may be restricted as to how much extra you can repay per year or in total
What should you keep in mind before you apply?
Remember that lenders may allow additional repayments on fixed rate personal loans, but there may be restrictions. Check if there is a fee charged for making additional repayments on the loan or if there is a limit for how many additional repayments you can make per year.
Have more questions?