Introductory Fixed Rate Personal Loans

Rates and fees last updated on

Kick start your repayments with an introductory fixed rate on your personal loan.

Selecting a personal loan is not a decision that should be taken lightly. A crucial part of the decision-making process is making yourself aware of all the features you could be taking advantage of. One of these features currently on offer is an introductory fixed rate option with your personal loans. These offers can help you manage your repayments and minimise costs over the life of your loan.

How do introductory fixed rates work?

Introductory fixed rates work by having a set rate on a personal loan for a pre-determined amount of time. The introductory rate may be offered as part of a promotion or it may be a permanent feature of the loan. The fixed rate allows you to plan your repayments and even repay your loan sooner if you budget correctly.

How to compare

When comparing personal loans with introductory fixed rates, it’s important to take all the loan features into consideration. Here are some things to keep in mind when comparing your loan options:

  • Fees. The fees you will be charged can contribute significantly to the overall cost of the loan and should be taken into account. You should be aware of upfront fees you might be charged to establish the loan, any ongoing fees and fees you may be charged for leaving the loan early.
  • Interest rates. Although the loan is offered with an introductory rate, you should also be aware of the revert rate if you do not pay the loan back in the introductory period.
  • Loan type. The type of loan may be restrictive as to the way you can use it, so you should consider this before you apply. For example, is the loan secured or unsecured? Does it revert to a variable rate after the introductory fixed rate period?
  • Loan terms. You should ensure the terms of the loan meet your requirements and also check to see how long the introductory period is offered for.
  • Loan amount. You should see if this loan will be too restrictive as to how much you can borrow. For example, is the minimum amount too much or is the maximum loan amount not enough to meet your borrowing needs?

Remember to always read the Product Disclosure Statement of the personal loan you’re applying for so you know exactly what happens after the introductory period if over.

Pros and cons of introductory fixed rates on personal loans

Pros

  • Introductory fixed rates can save you a considerable amount on interest over the life of the loan.
  • Fixed rates make budgeting for your repayments easier.
  • A loan with an introductory fixed rate means you can take advantage of the low fees and rates of a variable rate personal loan with the added bonus of a low fixed rate.

Cons

  • The revert rate may be quite high.
  • There may have certain restrictions regarding the use of the loan.

How to apply

To apply for a personal loan with an introductory fixed rate, choose your loan and then click the ‘Go to site’ button. From here you will be securely transferred to the lender’s online application form. To apply for a personal loan in Australia you will generally need to be above the age of 18, have a good credit rating and be a permanent Australian resident. You will also have to supply the following information:

  • Personal details including name, contact information and proof of identification
  • Your employer’s name and contact number
  • Details of your income which may require pay slips, bank statements or tax returns
  • Financial details including assets, credit account, debts and liabilities

Related Reading: Guide to fixed rate personal loans

Was this content helpful to you? No  Yes

Related Posts

RateSetter Personal Loan

Ratesetter allow you to get a personalised rate based on your credit score.

Citi Personal Loan Plus

Borrow up to $75,000. All approved applicants will receive the advertised variable rate of 11.99% p.a.

CUA Discount Variable Personal Loan (Loans over $30,000)

Apply for a loan over $30,000 and enjoy a discounted interest rate

MyState Unsecured Personal Loan

Apply for up to $50,000 and make additional repayments without penalty.

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback