Secured Personal Loans

Compare secured personal loans and see how attaching security to your loan can result in a lower interest rate

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Secured personal loan comparison

Updated January 22nd, 2020
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Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
RateSetter Car Loan
From 4.69% (fixed)
6.03%
$10,000
3 to 7 years
$499 (from $499)
$9
You'll receive a fixed rate from 4.69% p.a.
Borrow up to $100,000 with a RateSetter Car Loan and benefit from no early repayment or exit fees.
Loans.com.au - New Car Loan
From 4.89% (fixed)
5.44%
$5,000
3 to 5 years
$400
$0
You'll receive a fixed rate from 4.89% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.
Beyond Bank Low Rate Car Loan
5.49% (fixed)
5.73%
$25,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 5.49% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
IMB Secured Personal Loan
6.45% (fixed)
6.8%
$2,000
1 to 5 years
$250
$0
You'll receive a fixed rate of 6.45% p.a.
Benefit from this competitive rate by securing the loan with a vehicle up to 6 years old. Use this flexible loan for any purpose.
Credit Concierge Car Loan
From 4.79% (fixed)
5.34%
$10,000
1 to 7 years
$400
$0
You'll receive a fixed rate of 4.79% p.a. with a comparison rate of 5.34% p.a.
Get access to over 20 providers to fund a new or used car.

Wisr Secured Car Loan
From 5.19% (fixed)
6.08%
$5,000
3 to 7 years
$655 (Includes PPSR registration and private sale fee, if applicable)
$0
You'll receive a personalised interest rate from 5.19% p.a. to 16.49% p.a. based on your risk profile
A flexible car loan from $5,000 - $50,000 with personalised rates and rewards for strong credit customers.

RACV New Car Loans
From 5.69% (fixed)
6.39%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 5.69% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
NRMA New Car Loan
From 5.69% (fixed)
6.39%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 5.69% p. a.
Purchase a new car with this loan and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
Stratton Finance New Car Loan
From 4.69% (fixed)
5.64%
$10,000
3 to 7 years
$700 (for private seller vehicles this fee is $608)
$9
You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Australian Military Bank Car Loan
From 5.71% (fixed)
6.57%
$1,000
1 to 7 years
$500 (from $100 to $500)
$10
You'll receive a fixed rate between 5.71% p.a. and 8.66% p.a. based on your personal credit history
A flexible loan to help you finance a car, motorbike or boat up to five years old.
MyState Bank Secured Fixed Rate Personal Loan
From 5.99% (fixed)
6.63%
$10,000
1 to 10 years
$200
$5
You’ll receive a fixed rate of 5.99% p.a. ( 6.63% p.a. comparison rate ).
Apply for up to $75,000 available with asset security. Only good credit applicants can apply for this loan.
Westpac Car Loan
8.49% (fixed)
9.67%
$10,000
1 to 7 years
$250
$12
You'll receive a fixed rate of 8.49% p.a.
Finance a new or used car and benefit from convenient features for car buyers including a car search tool and the option to borrow extra for on-road costs.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$195
$12
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
Get a competitive rate and apply for a larger loan up to $80,000 when you attach a new or used car as security to the loan.
IMB New Car Loan
5.45% (fixed)
5.8%
$2,000
1 to 7 years
$250
$0
You'll receive a fixed rate of 5.45% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
14.2%
$3,000
1 to 7 years
$250 (Loans under $5000 - $140)
$13
You'll receive a fixed rate between 12.99% p.a. and 24.99% p.a. based on your risk profile
Lock in a competitive variable rate when you offer security. Loan can be used for any purpose and repayments are flexible.
NRMA Used Car Loan
From 6.99% (fixed)
7.7%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 6.99% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.

Compare up to 4 providers

If you’re looking for a personal loan to help take your next step towards a holiday, car or other large purchase – you might want to consider the benefits of a secured personal loan. While you might associate these loans with the purchase of a new vehicle, they are about so much more than just cars.

What is a secured personal loan?

A secured personal loan is a personal loan that is guaranteed against an asset either that you currently own or one that you buy with the loan. The most common form of secured loan is a car loan. Generally, car loans are secured against the vehicle that you are buying, though restrictions sometimes apply.

But a secured personal loan needn't just be for a car purchase. You can get a secured loan for almost any legitimate purpose as long as your security is equal to or greater than the value of the loan. While the most common forms of security are generally vehicles and home equity, you can use almost any asset to secure a loan. For example, security can also come in the form of high-priced items such as jewellery or monetary accounts like term deposits. However, please note that restrictions on the type of security you can use will depend entirely on the lender.

You can usually apply for any amount up to $100,000 for terms up to 7 years with a secured personal loan.

Close up of a mother having breakfast and doing bills with her daughter

Is a secured loan the best option?

It’s important to determine whether any type of financial product is right for you before you apply. Secured loans have tons of benefits, but they're not for everyone. Whether a secured loan is the best option will depend entirely on your personal circumstances. The best way to decide if a secured personal loan is the best option is to consider your situation and do your research and compare loan options.

Here are some points to keep in mind:

  • Secured loans are usually cheaper

    Because the lender has a backup (reselling your collateral), they face less risk should you default on the loan. For this reason, secured personal loans normally have lower or fewer fees and lower interest rates than unsecured personal loans. If you're looking for a loan at a competitive rate, a secured option is almost always going to cost you less.

  • Secured lenders sometimes consider bad credit applicants

    If you don't have a perfect credit score, you might be hard pushed to be considered for an unsecured personal loan. However, secured loans have fewer restrictions because the lender faces less risk. If you need a loan and your credit score has a few black marks, speak to a lender about getting a secured personal loan. Using an asset as security will almost definitely be more economical than opting for a payday loan.

  • You need an asset

    Do you already have an asset of value? Are you looking to buy one with the loan funds? If you don't own a valuable asset and you're not looking to buy one, a secured loan won't work for you. However, if you are looking to buy an asset, make sure that the lender you opt for accepts your specific purchase as collateral.

  • If you own an asset, are you willing to risk it?

    If you have an asset, are you willing to risk it if you default on the loan? You have to either be totally sure that you can make the repayments or willing to give up your possession if, for any reason, your circumstances change.

  • Your asset needs to meet the requirements of the lender

    Lenders will have requirements for the guaranteed asset, such as its age or value. For instance, if you’re using a vehicle as security, it may need to be under a certain age, usually from two to seven years. If you are using a term deposit, you may need to have a certain amount in the account.

How to compare secured personal loans

  • Loan amounts

    Find out what loan amounts the lender is offering and if it will match your loan purpose.

  • Loan terms

    Generally, loans are available for terms from one to seven years. Loan terms may only extend up to five years for fixed rate loans or peer-to-peer loans, so make sure you find a loan with terms that meet your needs.

  • Assets you can secure the loan with

    Lenders have different requirements when it comes to secured loans. You may not be able to secure the loan with the asset you are planning to use, so check this before you apply.

  • Fees

    Check upfront fees such as application or establishment fees as well as ongoing fees such as annual or monthly fees. Also, check default and late payment fees. These will add to your costs for the loan.

  • Interest rate

    How competitive is the interest rate? Compare the rate to other lenders and make sure to check the comparison rate, which will give you a better idea of the true cost of the loan.

  • Repayment flexibility

    Are you able to repay the loan early without penalty? Can you make additional repayments without being charged? Check this before you apply.

What can be used as security on a personal loan?

There are a number of different secured personal loans available, but you will typically be able to use the following assets as security for your loan:

  • New car

    If you're buying a new car or if you have a car that is less than two years old, you can generally use it as a guarantee for a secured loan. Secured motorbike and caravan loans are also available.

  • Used car

    Lenders will also let you purchase a used car with a secured loan. Other vehicles such as motorbikes or caravans may also be allowed. The vehicle will generally need to be less than 7 years old, although some lenders will accept cars up to 10 years old. Cars may also need to be in a certain condition.

  • Equity in your home

    If you own a mortgaged property, you can draw against any equity you have in the property to finance a purchase. Common uses for home equity loans are home renovations. Find out if a home equity loan is right for you.

  • High-cost assets

    Some lenders are more flexible with the assets they let you use. If you own expensive jewellery, fine art, precious metals, prestige cars or even some antiques, you can secure it against your loan.

  • Term deposits

    This is a more common type of loan available from some banks and credit unions. How much you have available in your term deposit is how much you're able to borrow with that same institution. The amount of your term deposit works as the security in case you default on the loan.

The pros and cons of secured personal loans

As with any type of personal loan, there are benefits and drawbacks to consider.

  • Lower rate. These loans are less of a risk for the lender and so come with lower interest rates.
  • Flexible. Unlike car loans, where you have to purchase the vehicle you're securing to the loan, you can generally purchase whatever you need to with a secured personal loan as long as the amount doesn't exceed your secured asset's value.
  • Can help you get approved. Offering an asset to secure a personal loan can help you get approved for loans you may previously not have been. This is because the loan is deemed less risky for a lender to take on when there is an asset attached to it.
  • Risk your asset. When you take out a secured loan, you are "guaranteeing" your loan with it. While securing your loan gives you lower rates, it also means you can lose your asset if you default on the loan.
  • Loan amount tied to your asset value. When you attach your asset to a secured loan it needs to have enough value. This means that your loan amount will never exceed the value placed on your asset. Make sure that your asset is worth the amount that you will require when taking out a secured personal loan.

Secured personal loan options

You have a few options when it comes to secured personal loans:

  • Car loans

    These types of secured loans can be for new or used cars. You can find car loans from most banks and credit unions as well as from dealerships and standalone car loan lenders. Rates can range from 2% p.a. for dealership finance (lower because of the balloon payment at the end of the term) and from 6-14% p.a. for a bank car loan.

  • Home equity loans

    If you’re looking to renovate, invest in property, go on a holiday or buy a new car, you can consider a home equity loan. With home equity loans, you can also qualify for a line of credit that can be drawn on continually based on the equity held in your property. This can be a flexible way to access funds.

  • Term deposit secured loans

    This type of loan is offered by banks and credit unions to customers who hold term deposits with them. You’re able to borrow as much as you hold in your term deposit, with the term deposit acting as the security.

  • Personal asset secured loans

    High-priced assets such as boats, motorbikes, jewellery and art are accepted by some lenders as a guarantee. Your item or collection of items is valued and then used as security. You generally won’t find these types of loans at major banks, but there are plenty of registered non-bank lenders who offer them.

Is there anything to consider before applying?

Before applying for any type of secured loan, it’s important to establish whether you can afford the repayments. If you default on the loan, the asset you’ve used as the guarantee can be repossessed by the lender and sold to cover the loss.

Comparing lenders to find the most competitive options in terms of terms, rates and fees will help you find the right option for your budget and needs. Therefore, it's a good idea to consider whether you’ve done enough research, prior to submitting your application.

How to apply

If you've found a secured personal loan that you think would work for your circumstances, simply click "Go to site" on your selected lender and follow the online application process. Eligibility criteria vary from lender to lender – so please check the lender's specifications before applying to ensure that you qualify.

While this varies, you will typically need the following documents and details to hand in order to apply:

  • 100 points of ID proving your name and that you are over 18 years old.
  • Proof that you will be able to pay off the loan – bank statements and payslips may be required.
  • Details of your address and supporting bills or documents.
  • Proof of ownership of a valuable asset/property.

Secured personal loan FAQs

What's the difference between a secured personal loan and a car loan?

A car loan can be a type of secured personal loan (not all car loans are secured). However, car loans are used specifically to purchase a vehicle. The difference is the secured loan amount is restricted to buying the vehicle that will be used as security for the loan. A secured personal loan can be for purchasing a valuable asset, but it can also be for almost any purchase if you already own the asset.

What happens if I default on a secured personal loan?

If you default on a secured loan, the lender can sell your asset to recoup its losses. If you think that you are likely to default on a secured personal loan repayment, contact your lender directly and inform them prior to the default. Most lenders will find a way to defer your payment (sometimes at a fee) and prevent you from losing your asset.

Why are interest rates lower on secured personal loans?

Because you have attached an asset to the loan, the lender is taking on less of a risk by lending you money. This is because even if you default on the loan they have a right to the asset you have attached to the loan. In exchange for you taking on the risk of attaching the asset to the loan, you get a lower interest rate.

Picture: Getty & Shutterstock

Personal Loan Offers

Important Information*
Logo for Harmoney Unsecured Personal Loan
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 28.69% p.a. based on your risk profile.
Apply for a loan up to $70,000 and repay your loan over 3 or 5 years terms.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 10.69% p.a. and 18.69% p.a. ( 11.58% p.a. to 19.53% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 7.5% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.

Logo for Pepper Money Unsecured Fixed Rate Personal Loan
Pepper Money Unsecured Fixed Rate Personal Loan

You'll receive a fixed rate between 8.95% p.a. and 16.95% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Make additional repayments or pay off the loan early, penalty-free.

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8 Responses

  1. Default Gravatar
    VickiOctober 4, 2019

    I’m after an $1800 loan, for dental work. I have a Hyundai 2011 accent done 70 thousand km. I brought it for $7000 early this year, it was valuable then at $10,000. I want to get a loan against my car.

    • Avatarfinder Customer Care
      NikkiOctober 6, 2019Staff

      Hi Vicki,

      Thanks for your message. You can check out small personal loans for your dental needs on this page. A small personal loan is a form of credit that is between $100 and $2,000. They usually have shorter loan terms and have more flexible lending criteria than personal loans and are offered by non-traditional lenders. It’s important to note that most personal loans from banks, like the ones in the table above, have a minimum borrowing amount of around $3,000 to $5,000. You will find a table that compares the features and benefits of each loan provider such as max loan rate, interest and etc. This way it will be easier for you to see which provider fits you best.

      If you need further help, a quick guide on how to compare small personal loans is also stated on the page. You can also click the compare box beside each loan option and compare up to 4 options side by side for easier comparison. As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.

      Hope this helps and feel free to reach out to us again for further assistance.

      Best,
      Nikki

  2. Default Gravatar
    LuciApril 26, 2017

    Can I use a car as security for a fixed personal loan (for a holiday) even if I still owe money on the car?

    • Avatarfinder Customer Care
      HaroldApril 27, 2017Staff

      Hi Luci,

      Thank you for your inquiry.

      If you are planning to get a Fixed Rate Personal Loans you may want to consider this options. You can check and review on this page the common requirements that required by the lenders.

      I hope this information has helped.

      Cheers,
      Harold

  3. Default Gravatar
    WombatApril 27, 2016

    I need $100k urgently. Can I use my existing home (no mortgage) as collateral?

    • Avatarfinder Customer Care
      ElizabethMay 2, 2016Staff

      Hi Wombat,

      You can consider a home equity loan for this purpose, which you can compare on this page.

      Hope this helps,

      Elizabeth

  4. Default Gravatar
    DenizFebruary 23, 2016

    I have a partner provisional visa 309 I am looking car loan . Not eligible anywhere. Can you help me?

    • Avatarfinder Customer Care
      MattFebruary 24, 2016Staff

      Hi Deniz,

      Thanks for your comment. To find out a range of loans you may be eligible for on a visa, you can read our guide to loans for temporary residents here.

      It might be best to contact your current financial institution personally, to see if they have any options available.

      I hope this helps.

      Cheers
      Matt

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