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Plenti offers this unsecured personal loan with a fixed or variable rate. Receive a tailored interest rate from 5.99% p.a. based on your risk profile.
For more information on any of these loans, simply click "More Info" to be taken to our review page. To apply for a loan, click "Go to site".
Fixed rate personal loans are a standard form of personal loan in which the rate will not change during the loan term. Variable rate personal loans, on the other hand, have rates which fluctuate with market changes. With a fixed rate loan, you can usually choose a loan term of between one and five years.
Having your repayments remain fixed for the life of a loan is a big benefit, but it's important to understand fixed rate personal loans generally come with restrictions. These mostly have to do with repayments. For example, you may not be able to make additional repayments or you may only be able to make repayments up to a set cap. You may also not be able to repay the loan early. However, not all fixed rate personal loans come with these restrictions - and not all fixed rate loans are created equal - which makes it important to compare your options.
Fixed rate personal loans come with a number of benefits, but also a few restrictions. Here are the typical features you can expect:
Lenders offer varying loan terms depending on a number of factors. These include whether the loan is secured or unsecured, and the circumstances of the borrower. However, you can usually expect a term of between one and five years, with some lenders extending up to seven years. With some loans, part of this term may be fixed and the rest variable.
The interest rate is fixed and that means your repayments stay the same for the entirety of your loan term. This will be the case regardless of what happens to rates in the market.
Look out for fees for establishing the loan or ongoing monthly fees. These aren't standard for fixed rate personal loans, so remember to compare what's available.
Fixed rate personal loans may come with fees for paying your loan back early or for making additional repayments. These differ between lenders, but generally, because you are considering ending the fixed term early, you will usually be expected to pay a fee. This is sometimes referred to as a "break fee"*. You might also find some lenders only charge fees if you repay your loan within a certain period, for example, in the first year.
A break fee is a type of compensation for the breaking of a deal or contract. In finance, a break fee is a fee that's paid by the borrower to the lender for either cancelling the contract early or switching to another loan type. Depending on the borrower, break fees may only be payable if the market interest rate is lower than your fixed rate.
This could mean that the amount payable is the difference in the amount of interest that will be lost due to the fixed term being broken, and the projected interest that can be earned by re-lending the funds at the new offered rate for the remaining contracted fixed-term. Other lenders may have a set break-fee.
Personal loans that come with a fixed interest rate can be suitable to help you finance a range of different purposes:
Generally speaking, variable rate loans offer more flexible repayments. This includes the ability to make extra repayments, repay the loan early and access a redraw facility. Some fixed rate personal loans may also offer these features but not all will. If you want features such as the ability to make early repayments, make sure to find a loan that offers this without charging a penalty.
Both fixed rate and variable rate personal loans can offer competitive rates, so it pays to compare both to find a good deal. Also look out for risk-based personal loans if you have a good credit history. These loans reward good credit borrowers with better rates.
While fixed rate loans generally come with certain features, there are no hard and fast rules that lenders need to play by. This means that you could find a loan offering all of the features you want and it could have a fixed or variable interest rate. So, decide what features you want from your personal loan; whether it be repayment flexibility, a long loan term or a redraw facility, and find a loan that offers what you want.
Keep the following in mind when comparing fixed rate personal loan options:
If you're looking to buy a vehicle or own a property you can consider a secured fixed rate loan and use the asset you own, or are looking to buy, as a guarantee. Secured loans usually come with lower interest than their unsecured counterparts because they're less risky for lenders. But be aware that if you fail to make your repayments, the lender is able to repossess your asset and sell it to recoup its losses.
Comparing interest rates is important as this is the rate you will be paying for the whole term of your loan. Compare the loan against similar offerings to get an idea if it's competitive. Remember to check the comparison rate as well as the advertised interest rate. This is because comparison rates take into consideration additional fees and charges, and are therefore a more accurate representation of what you will have to pay.
This ultimately comes down to what you need. You can expect most lenders to offer repayment terms of between one and five years for fixed rate loans, but some lenders extend their offerings up to seven years. The longer the loan term, the lower your repayments - but ultimately you will end up paying more over the life of the loan with a longer loan term.
Look out for up-front charges such as establishment fees, ongoing costs in the form of monthly or annual fees, and what you will be charged if you repay the loan early or make extra repayments. Other costs to watch out for include penalties for late payments.
Note: The RBA has not updated the average fixed rates on personal loans since Feb 2020.
As mentioned above, you can generally still make additional repayments on a fixed rate personal loan, but may be charged a fee for doing so. However, some fixed rate loans will allow you to make extra payments, or even pay off your loan early, without penalty.
This means you can benefit from the stability of fixed repayments, but also have the flexibility to pay off the loan as you want. Even if you don't plan on making extra repayments, it may be worth considering a personal loan that offers the ability to do so.
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.
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we are wanting to remodel our home. what loan would be good for us?
Hi Shelly,
Thanks for your question.
I’m not able to recommend a specific loan to you as the best loan will depend on how much you’re looking to borrow, your financial situation, what you’re eligible for, etc. To remodel your home you can use an unsecured personal loan, some of which are on the page above, or a home equity loan, which secures the loan amount against the equity you hold in your home in gives you a lower rate. You can compare your loan options using the tables on the page above and on the page I’ve linked. Once you’ve found a loan you’re eligible for and that you want to apply for, click ‘Go to Site’ to find out more and submit your application.
I hope this has helped.
Thanks,
Elizabeth
is there an organisation i can talk to that would go through all aspects with me on the phone to make sure i’m making the right decision on a personal loan
Hi Steve,
Thanks for your question.
Unfortunately we can’t recommend a specific organisation to you, as this is considered personalised advice. You might be interested in the services of a financial planner.
Cheers,
Shirley