🎂 Turned 31 this year? Get health insurance before your price rises.
Get cover

Variable Rate Personal Loans

Variable rate loans can give you the flexibility to help you pay off your debt faster.

Variable rate loans are a flexible way to make a large purchase, invest in your home through renovations, consolidate debt or whatever else you're planning to do. That's because variable rate personal loans come with fewer repayments restrictions than what's placed on fixed rate personal loans, so you can make additional repayments and repay your loan early without penalty. Find out what kind of loans come with a variable rate and if it's the right option for you.

Citi Personal Loan Plus

Citi Personal Loan Plus

from

8.99 % p.a.

variable rate

from

9.96 % p.a.

comparison rate

  • Loan amounts from $5,000
  • Offers a reusable credit facility
  • Repay over 5 years
Security Logo

100% confidential application

Citi Personal Loan Plus

Apply for a Citi Personal Loan Plus and get competitive interest rate offer with a reusable credit facility.

  • Interest rate from: 8.99% p.a.
  • Comparison rate: 9.96% p.a.
  • Interest rate type: Variable
  • Application fee: $199
  • Minimum loan amount: $5,000
  • Maximum loan amount: $75,000
Go to site
Promoted

A comparison of variable rate personal loans

Rates last updated June 18th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Citi Personal Loan Plus
From 8.99% (variable)
9.96%
$5,000
3 to 5 years
$10
$199
Borrow up to $75,000 to use for a range of purposes. You’ll receive a rate of between 8.99% p.a. and 17.99% p.a. depending on your risk profile. (Comparison Rate of 9.96% p.a. to 18.91% p.a..)
MyState Unsecured Personal Loan
12.99% (variable)
16.42%
$3,000
1 to 7 years
$10
$200
Apply for up to $50,000 and make additional repayments at any time without penalty.
Pepper Money Unsecured Variable Personal Loan
From 9.99% (variable)
9.99%
$5,000
1 to 7 years
$0
$0
Borrow from $5,000 and enjoy a competitive variable rate. Interest rates start from 9.99% p.a. The rate you are approved for depends on individual circumstances.
CUA Unsecured Variable Personal Loan
11.89% (variable)
11.89%
$5,000
1 to 7 years
$0
$0
Pay no monthly fees and make unlimited extra repayments when you borrow less than $60,000

Compare up to 4 providers

The biggest attraction is generally their flexibility and lower establishment and introductory rates, as opposed to the higher fees associated with fixed rate loans. However, due to the fluctuating market interest rates, repayments are uncertain and unstable. If you prefer the certainty of fixed repayments, then you may want to opt for a fixed rate loan instead.

How does a variable rate loan work?

When you apply for your loan, an interest rate will be applied to your loan contract, but this rate can vary over the course of your loan term. Your loan term is fixed, but you will generally be able to make additional repayments without penalty and also be able to repay the loan early without incurring fees.

Variable rate personal loans can come as secured or unsecured personal loans and terms range from between one and seven years. Depending on the loan you opt for you may be able to borrow between $3,000 and $80,000.

How you can compare variable rate personal loans

  • Variable interest rates. The interest rate will vary between lenders, but with so many lenders to choose from, interest rates are usually quite competitive. The interest rate will change as the market fluctuates, which can present an element of risk. The rise and fall of the market interest rate can be unpredictable, making it harder to budget for your repayments.
  • Repayment flexibility. Variable rate loans tend to allow you to make advanced and additional repayments throughout the course of paying off your loan. While some fixed loans are now offering this option, they most typically have a limit on the amount that can be paid in advance. You should always confirm the repayment flexibility of your loan before you apply.
  • Fees and charges. Check the upfront and ongoing fees when comparing your variable rate loans. These can add significantly to the cost of the loan.
  • Comparison rates. The comparison rate is extremely important to consider when comparing variable loans. It shows the ‘true cost’ of a loan as it incorporates your interest rate plus any fees you have to pay.

What benefits and drawbacks come with variable rate loans?

  • More options. Variable loans usually offer more options than fixed rate loans, including redraw facility, low introductory rates and no extra fees for making additional repayments.
  • Competitive rates. Due to the popularity of this type of loan, lenders offer competitive rates to attract borrowers.
  • Non-fixed interest rates. When interest rates drop, you’re not locked into a set interest rate, letting you enjoy lower repayments and a cheaper overall amount to pay back.
  • Lower fees. Establishment and administration fees and charges are usually lower than on fixed rate loans, keeping your overall cost down.
  • Interest rates are unpredictable. As market interest rates rise and fall, so does your loan interest rate. If interest rates rise, the repayments of your loan will increase and may cost you more in the long run.
  • Fluctuating repayments. Variable interest rate loans are sensitive to economic conditions and the interest rate of your loan will change over the duration of paying it off. It can make it hard to work out a budget if your minimum loan repayments are constantly changing.

Things you might want to avoid

  • Not checking fees and charges. Be sure to ask about any extra charges such as administration or application fees. With any major purchase, you need to know exactly what your costs are.
  • Borrowing more than you can repay. Only borrow how much you need, especially with a secured loan as you will lose your asset. However, defaulting on any kind of loan leads to a negative mark on your credit file.
  • Extending terms longer than needed. Some lenders might try to convince you to seek longer terms and even offer lower monthly payments as a selling point. Shorter terms mean you pay less interest, so you may want to consider choosing the shortest terms that are manageable on your budget.
  • Unnecessary extras. You may want to avoid gimmicky extras like payment holidays and cash-back facilities. For example, interest is still accumulated during payment holidays, thereby increasing your overall repayment. With cash-back offers, you stand to lose your cash-back amount if you decide to pay off your loan ahead of time.

How you can apply for a variable rate personal loan

Eligibility criteria differ between lenders, but generally, if you are over the age of 18, are a permanent Australian resident or citizen and have a good credit history, you may be able to apply. Compare your options above and click through to review the eligibility criteria.

You can compare your options using the comparison table at the top of this page.

Applying for a variable rate loan can take just minutes, as most lenders allow you to apply online as long as you can provide the necessary documentation. You will need to provide your residential address, employment and income details, bank statements and credit history.

Was this content helpful to you? No  Yes

Related Posts

Personal Loan Offers

Important Information*
SocietyOne Unsecured Personal Loan

Based on your risk profile, you will receive a tailored rate between 7.5% and 20.49% with a SocietyOne personal loan.

Harmoney Unsecured Personal Loan

Interest rates are tailored to each applicant individually, and start from as low as 6.99% p.a. to 26.95% p.a.. based on your credit history.

Pepper Money Unsecured Fixed Rate Personal Loan

Apply for up to $50,000 and receive conditional approval within minutes. Interest rates range from 9.99% p.a. to 21.74% p.a. The rate you are approved for depends on individual circumstances.

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

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

Ask an Expert

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

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

4 Responses

  1. Default Gravatar
    LeighApril 17, 2018

    I was after a personal loan of $60k, can be repaid within 2-4 months, with a low interest and fast access. Is there something out there for me?

    • Staff
      NikkiApril 17, 2018Staff

      Hi Leigh,

      Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?

      For low-interest personal loans, for you to get the 60,000 amount, the repayment term is at 3 years minimum. You may compare from Citi Personal Loan Plus with an interest rate of 9.96% or Harmoney Unsecured Personal Loan, giving an interest rate of 7.69%. If your term is shorter, the interest would be at a higher rate. According to our website, the lowest interest rate for 12 months term is 12%.

      Please note that we’re a product comparison website and we hold no affiliation with any company we feature on our site. We provide general information on products to assist you in your buying decision process hence we cannot recommend product / service that is rightfully fit for you.

      Hope this helps! Feel free to message us anytime should you have further questions.

      Cheers,
      Nikki

  2. Default Gravatar
    CampbellJanuary 14, 2018

    We want to borrow $4000 and pay it off over 12 months. No set up fees or monthly fees. Can you tell us the best small loan for this. Thanks

    • Staff
      ArnoldJanuary 15, 2018Staff

      Hi Campbell,

      Thanks for your inquiry

      Actually, the page above allows you to compare Variable rate loans which gives you the flexibility to pay your loans faster. Please fill in the loan amount and loan term before calculating to find the right loan that suits your needs.

      Hope this information helps

      Cheers,
      Arnold

Ask a question
Go to site