Looking for a personal loan with repayment stability and flexibility? Learn about fixed rate personal loans that allow extra repayments.
Fixed rate loans can offer you a convenient way to finance a personal purchase, allowing you to make repayments that stay the same throughout your loan term. However, these loan terms can extend up to seven years, and during that time you may want some flexibility with your repayments during that time. There are fixed rate loans that offer this, and the guide below will take you through what you want to know.
- Fast turnaround
- Loans amounts from $5,000
- Competitive fixed rate
100% confidential application
Pepper Money Unsecured Fixed Rate Personal Loan
Apply for up to $50,000 with this unsecured loan and benefit from no application or monthly fees. Receive a tailored interest rate between 9.99% p.a. and 21.74% p.a. based on your risk profile.
- Interest rate from: 9.99% p.a.
- Comparison rate: 9.99% p.a.
- Interest rate type: Fixed
- Application fee: $0
- Minimum loan amount: $5,000
- Maximum loan amount: $50,000
Compare fixed rate loans that allow additional repayments
How do these personal loans work?
Fixed rate personal loans lock in a certain interest rate for the entire term of your loan, which can be anywhere between one and seven years. While these loans tend to come with less repayment flexibility, there are loans that allow additional repayments. Keep in mind that some loans in the table above may allow repayment flexibility but charge you a fee, or only allow additional repayments up to a certain limit.
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.
What are the pros and cons 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
Main points to keep in mind before applying
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?