Compare secured personal loans to fund your plans, using an eligible asset as security while exploring rates, fees and repayment options that suit your budget.
Got a paid-off car out the front, or a caravan that only comes out for the school holidays? That’s an asset lenders can look at, and it can change the loan you’re offered. Compared to an unsecured loan, putting something up as security often means a lower rate, and sometimes a higher limit.
The catch is that the asset is on the line if repayments fall behind, so the numbers need to work before you sign. On LoanCalculator.com.au you can compare secured personal loan options from 40+ lenders side by side, see roughly what your repayments would be, and decide whether it’s worth it.
A secured personal loan is one that’s linked to an asset you own – like a car, caravan, or boat. The lender gets to hold that asset as security till the loan is paid off, which makes them a bit more confident that they’ll get their cash back. That can result in a lower interest rate than an unsecured loan.
Here’s how it works in a nutshell:
Once you’ve made the final repayment, the lender’s interest is cancelled, and the asset is all yours again.
At LoanCalculator.com.au, you can play around with our repayment calculator and compare options before you actually apply. Just a heads up – we’re a comparison service, not a lender ourselves, and we don’t cover every loan on the market.
Typically, lenders want to see assets that hold their value & are easy to identify – here are some examples:
Every lender’s got its own rules about asset age, condition and value, so it’s well worth checking what you’re eligible for before applying.
There’s no one-size-fits-all amount – but generally, secured loans start around $5,000 and some lenders will go up to $200,000 or more. It really depends on the asset in question and your financial situation.
What lenders usually look at:
Start with what you really need, rather than trying to max out the loan. You can play around with our personal loan calculator to see what fits your budget.
It really depends on whether you have an asset to use as security – but it’s worth weighing up the pros & cons.
| Feature | Secured Personal Loan | Unsecured Personal Loan |
|---|---|---|
|
Security required |
Yes |
No |
|
Interest rates |
Often lower |
Usually higher |
|
Borrowing limits |
Can be higher |
Generally lower |
|
Loan terms |
Can be longer |
Often shorter |
|
Risk to your asset |
The asset may be repossessed if you default |
No asset at risk |
|
Approval process |
Asset details and checks needed |
Usually simpler |
If you’d rather not tie up an asset, an unsecured personal loan might be worth looking into.
| Feature | Secured at 8.5% p.a. | Unsecured at 12% p.a. |
|---|---|---|
|
Monthly repayment |
about $410 |
about $445 |
|
Total interest |
about $4,620 |
about $6,690 |
|
Total repaid |
about $24,620 |
about $26,690 |
Note: These rates are just examples, not offers, and fees aren’t included.
Using an asset as security can really make a difference to the loan you’re offered – here are some reasons why many people choose this option:
Just remember: If you fall behind on repayments, the lender may repossess the asset. So only borrow an amount you can comfortably repay.
The interest rate is only part of the picture. Here’s what else to look at:
A comparison rate is based on a standard example loan though, so what you’d actually pay might be different. Where lenders give us the details, we show fees and comparison rates so you can see the full picture before you apply.
Every lender sets its own criteria, but most look for similar things.
Follow these simple steps to compare your options and apply for a secured personal loan.
Use our repayments calculator to see what different loan amounts, rates and terms will do to your budget.
Look over the rates, fees and features from more than 40 different lenders in one go.
You'll need your ID, some proof of income and details about the asset you're using as security.
Choose a lender whose rates and terms suit you and apply.
Once the lender has sorted you out, the funds will go straight into your account according to your agreed loan terms.
Finding a loan to borrow against your car, caravan or boat should be clear and quick. Our comparison tools put the key details in one place so you can make a confident decision:
Secured personal loans can raise questions about interest rates, eligible assets and repayment terms. Here are answers to help you understand your options before applying.
If you think you might be getting behind with your repayments, get in touch with your lender early – many of them offer hardship assistance of some kind. But if you don’t get back on top of it, the lender may end up repossessing the asset and selling it.
Not if you haven’t got the lender’s approval first. You’ll need to either pay out the loan or swap the security to another asset before you can sell it.
Most lenders expect you to have comprehensive insurance on a vehicle or similar asset for the whole length of the loan.
Many lenders will let you make extra payments or even pay out the loan in full, but check the terms of your loan first – some charge a fee for early payout, especially on fixed-rate loans.
Yes, you can apply as a couple – some lenders will consider both incomes, and both of you will be responsible for the debt. Learn more about joint personal loans.
No – our comparison service uses a soft check, which won’t leave a mark on your credit file. If you do go on to apply, the lender will run a full credit check, and that enquiry will show up on your credit file.
Work out what your repayments would be and explore secured loan options from a range of participating Australian lenders before you go ahead and apply.
