Compare fixed rate personal loans from 5.76% p.a.

How does a fixed rate personal loan work?

Personal loans all work in the same way: you borrow money and pay it back with interest charges and fees. But with fixed rate personal loans your interest rate stays the same. This means your repayments are fairly fixed and predictable.

You can fix your rate for the entire loan term with most lenders, or for part of the loan term.

Here's a simple example:

• You borrow $10,000 over 3 years with a fixed interest rate of 13%.
• Your monthly repayments are $342 a month for the life of the loan.

If your loan had a variable rate, then it could change at any time, potentially increasing or decreasing your repayments.

What types of personal loans have fixed rates?

You can get a fixed interest rate for most types of personal loan:

• Secured personal loans
• Unsecured personal loans
• Line of credit loans
• Loans for debt consolidation
• Car loans

What's the difference between a fixed rate and a variable rate personal loan?

Fixed rate personal loans

👍 Your interest rate stays the same each month, meaning your repayments won't change.

👍 You're unaffected by interest rate rises.

👍 If interest rates fall you won't be able to take advantage of it.

❌ Some lenders limit your ability to make extra repayments, keeping you in debt for longer.

Variable rate personal loans

👍 Your interest rate can change at any time (although lenders don't really move variable rate personal loans around that much).

👍 These loans let you make extra repayments more easily and are more likely to offer redraw facilities.

👍 If rates fall you can lower repayments.

❌ If rates rise your repayments rise too.

Do fixed rate personal loans have lower interest rates?

An analysis of the rates in Finder's database shows that fixed rates are often slightly lower than variable rates on average.

• The average fixed personal loan interest rate in December 2025 for a borrower with an excellent credit score is 8.56%.
• The average variable personal loan interest rate in December 2025 for a borrower with an excellent credit score is 10.77%.

But these are average figures from a large database and are not representative of any particular product. That's why comparing rates yourself is always a good idea.

Is a fixed rate loan right for me?

The differences between fixed and variable rate personal loans are smaller than you might think. Some lenders offer the same rate for both fixed and variable loans.

For many borrowers finding a loan with fewer fees and a lower interest rate matters more than if it's fixed or variable.

A fixed rate personal loan might work better for you if:

• You want to budget your exact repayments each month.
• You're not too worried about paying off the loan early.
• You don't want to make extra repayments and redraw them.
• You're happy with the loan's rate and fees and want to forget about rising rates.

Fixed rate personal loan example scenarios

Below is a comparison table showing how your monthly repayments and total interest would change if you borrow $10,000 from the NAB Fixed Rate Personal Loan at a fixed comparison rate of 8.41% p.a., but choose different loan terms.

What this means for you:

• Shorter terms mean you'll pay less interest overall, but the monthly cost is higher.
• Longer terms lower your monthly repayment but increase the total interest you'll pay over the life of the loan.

Please note though that actual repayments may differ depending on many different factors including your credit score, financial position and more.

Fixed rates, early repayments and refinancing

If you fix your personal loan rate and then later decide you want to refinance to a better loan, or pay off the loan early, it might cost you.

Some lenders charge an early repayment fee for breaking a fixed rate loan early. This could be a flat fee of (for example) $300. Or it could be calculated based on your loan details and the amount your lender stands to lose when you repay the loan early.

Lenders may call this a break fee or an early repayment adjustment. Check your loan contract for the details of this cost before you fix your rate.

6 tips to get a better deal on a fixed rate personal loan

1. Look for a lower interest rate. A lower interest rate will save you money by minimising your interest charges.
2. Look for a loan with lower fees. Some personal loans have hefty fees that can even make a low-rate loan expensive. Fixed rate loan fees are comparable to variable rate loan fees, but repaying a fixed rate early can come with a break fee.
3. Choose your loan term carefully. You can fix your loan rate for 1 – 7 years. A longer loan term costs you more in interest charges but makes your monthly repayments smaller.
4. Improve your credit score before applying. The lowest fixed personal loan rates go to borrowers with excellent credit scores. Get your credit in top shape before you apply for a loan.
5. Make sure you meet all the lender's borrowing requirements. Check the lender's website and its lending criteria before you apply. This ensures you don't waste time applying for a loan you're not eligible for (which hurts your credit score if you get rejected).
6. Avoid borrowing more than you can afford. Borrowing more than you can afford puts you at risk of defaulting on your loan repayments. It also makes it harder to get your loan application approved.

Why compare personal loans with Finder?

Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)

Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.

Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.

Frequently asked questions

• What is a good fixed rate for a loan?

  The fixed rate loans in the table above can give you a good indication of what a competitive fixed rate looks like for a personal loan right now.

  Keep in mind that the rate you'll actually get depends on a few factors like your credit score, your income, and the amount you're borrowing.

• Can you pay off a fixed rate personal loan early?

  Some lenders let you make limited extra repayments on a fixed rate loan, but it's rare they'll let you pay off the loan early. The amount you can pay extra is usually capped to a certain amount per year. If you exceed this limit the lender may charge extra fees for doing so.

• Are fixed rate loans better?

  This really comes down to what you want as a borrower. And it also depends on the loans you're looking at.

  For many borrowers, the differences between a fixed or variable rate personal loan are fairly minimal. The actual rate and the loan fees are more important.

  But if you really want a loan where the rate and repayments never change and you're less concerned about early repayments, then a fixed rate loan might work better for you.

• Can I switch from a fixed rate to a variable rate loan?

  Your lender may let you switch from a fixed interest rate to a variable one. But they will probably charge a fee to do so.

Written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 686 Finder guides across topics including:

• Home loans
• Credit cards
• Personal finance
• Money-saving tips