Know your options
There are good deals out there for both variable rate and fixed rate personal loans. A quick personal loan comparison can help you save money by finding the right loan for you.
With a variable rate personal loan, you can make extra repayments and repay your loan early without penalty. You will also have access to redraw facilities. While the loan comes with benefits and extra features, your interest rate can fluctuate monthly based on the market rate. This makes it difficult to predict repayments.
There are good deals out there for both variable rate and fixed rate personal loans. A quick personal loan comparison can help you save money by finding the right loan for you.
With a variable rate loan, your interest payments could potentially change from month to month based on market conditions. Unlike fixed rate loans, if the interest rate drops, you will pay less. But if it increases, your interest payments will also increase.
That said, variable rate loans come with more features than fixed rate loans. You will be able to make additional repayments without penalty or repay your loan early without paying fees. You will also be able to redraw your extra repayments if needed.
Here's what you can typically expect with a variable rate personal loan:
Fixed interest rate | Variable interest rate | |
---|---|---|
Interest on repayments | Your interest will not change over the loan term but will remain consistent throughout. | Your interest may fluctuate over the course of your loan term. This means that you may end up paying less or more in interest based on the market rate. |
Budgeting | Easy to budget as your repayments remain the same every month. | Monthly budgeting may be tricky as the interest rate may vary on a monthly basis. |
Break or early fees | Depending on the loan, there may be break fees if you wish to pay off your loan early. | You can pay your loan early without incurring a penalty. |
Additional repayments | Depending on the loan, there may be fees if you wish to make additional repayments, or there may be a cap on how many additional repayments you can make. | No penalty for additional repayments, allowing you to reduce your loan amount if it is within your means. |
Redraw facilities | Depending on the loan, you may have this facility, but it could incur a fee. Some fixed rate loans don't offer this at all. | You can make extra payments and then withdraw that money if you need to, often free of charge. |
There are a number of factors to consider when choosing between fixed and variable interest. You should ask yourself the following questions:
If you want to be able to make extra repayments and repay the loan early, then a variable rate loan might be the way to go. Some fixed rate loans also offer similar features, so make sure to look into that if you would prefer having fixed repayments.
Both fixed and variable rate loans offer competitive rates, but you also need to consider the monetary advantage of extra repayments. You should also consider fees and see which loan works out to be cheaper, not merely monthly but also at the end of the term. You can use our personal loan calculator to help you figure out whether you can afford the loan.
If you're someone who needs the certainty of fixed repayments, then a variable rate loan may not be suitable. If you think fluctuating interest payments will throw a spanner in your budget or if you don't have that flexibility, then a fixed rate loan may be better.
If interest rates fall, you will naturally benefit from a variable rate loan. If it falls and you've locked in with a fixed rate, then you'll be paying more than the market rate. But if the rate does increase, are you in a position to absorb the extra cost? Will you have trouble meeting your repayments?
To help you find the right variable rate loan, you should look out for the following factors:
Pros
Cons
🤔 Work out what type of loan to apply for, how much you need to borrow and what you can afford.
🔎 Start comparing lenders and loan products. Don't forget to compare interest rates, fees and eligibility criteria. You can use Finder's comparison table.
✅ Select a lender. Click "Go to site" to be directed to the lender's page or "More info" if you want to read about the lender.
🖨️ Organise and prepare the required documentation. This will make the application process easier.
📱 Apply. Most lenders have their applications online.
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Find out exactly what you need to know when it comes to cheap personal loans, including working out if a loan is really competitive.
Hi,
I’m looking to get a personal loan close to $50,000 over 7 years. I have an income of $52,000 net, total expenses annually add up to $28,000. I also have a good credit score of 620. What’re my chances of getting approved for this amount?
Thank you
Luns
Hi Luns,
Thanks for getting in touch with Finder. I hope all is well with you. 😃
There are lenders who might be able to consider you a loan as long as you meet their requirements.
To help you, please refer to our list of personal loans. You can use our comparison table to compare lenders based on the interest rate, loan term, and fees, to name a few. Once you found the right one for you, click on the “Go to site” green button to learn more or initiate your application.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
You may also check some tips on how to get your personal loan over the line.
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua
i am a single mother on a centerlink benefit, i would like to borrow $25,000 and pay it off on a long term loan, the banks keep turning me away is there anything out there for me..
thanks
Hi there,
Thanks for leaving a question on Finder.
You can check our list of Centrelink loans and personal loans for single parents. This page provides a list of lenders that will consider you for a loan.
Please click the name of the lender to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.
Cheers,
Joel
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?
Hi Leigh,
Thanks for your message and for visiting Finder.
You can use our comparison table to compare low-interest rate personal loans. To help narrow down your options, you may enter the $60,000 next to the loan amount followed by your preferred term then press “Calculate”. This should allow you to see your projected monthly repayment for each lender. You may then sort the table based on the interest rate p.a., comp rate p.a, fees, and your projected monthly repayment. If you like to see the side-by-side comparison between brands, just click the “compare box” below the brand’s logo.
Please click the name of the lender or the “More info” link to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.
Hope this helps! Feel free to message us anytime should you have further questions.
Cheers,
Nikki
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
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