Most personal loans are over two to five years, although shorter periods are possible, especially with fast cash loans. Personal loans usually have a minimum amount of around $2,000. Credit cards or accounts with overdrafts are often used for credit amounts under a few thousand dollars. What are the different types of personal loans There are several different types of personal loans available in Australia. Secured personal loans (eg: car loan) Unsecured personal loans (eg: debt consolidation loan) Variable rate personal loans. Fixed rate personal loans. What can you use your personal loan for? You can use a personal loan for lots of purposes, such as an exotic holiday or a new kitchen. You can also take out a debt consolidation loan to help you to pay off a number of credit agreements more comfortably. Some types of loan have more specific purposes, like a wedding or a car loan. Car loans are a type of secured loan, because the vehicle is used as collateral; the amount you borrow is secured against the value of the car. Loans that you intend to use for an unspecified purpose, such as a holiday and a kitchen counter, tend to be unsecured because you can’t have your holiday repossessed if you don’t pay the loan once you’re home! The purpose of a debt consolidation loan is to bring two or more credit agreements, including existing loans, overdrafts and credit card balances,under the umbrella of one agreement. The aim of a consolidation loan is to find a better interest rate and to make only one payment a month so that your debts are more manageable. Finding a good personal loan Finding the best unsecured personal loans, or secured loans is quite easy, but it’s not a process you should rush. Head to a comparison site, look through the best personal loans in December 2019 and take some time to work out your purpose and your budget. It’s worth looking at the providers of online loans, too, as these lenders can offer attractive interest rates as well as relatively quick and easy personal loans. It’s helpful to have examples of the loans on offer to Australian borrowers, so here are some of the most attractive personal loans out there right now. The Harmoney Unsecured Personal Loan This loan offers successful applicants amounts between $2,000 and $35,000 at interest rates starting from 6.99 per cent (the comparison rate is 7.69 per cent) up to a maximum of 29.99 per cent. Borrowers can pay the loan back over a period of three to five years. There’s no monthly or service fees and no early termination fee, but there is an application fee of $500. You can also use this loan to buy a new or used car, which may be useful to you. The NRMA Secured Personal Loan This loan offers borrowers successful applicants amounts between $5,000 and $7,000,000 at interest rates starting from 6.99 per cent (the comparison rate is 7.70 per cent) up to a maximum of 13.95 per cent. Repayment terms range from one year to seven years and there’s an early repayment fee of either $205 or two per cent of the outstanding loan amount, whichever is greater. Borrowers will also pay an application fee of $301.44, as well as a $10 exit fee. The lender will accept several asset types as security against the loan. The NRMA Fast Loan Low Rate for a New Car This loan allows successful applicants to borrow amounts between $5,000 and $100,000 to buy a new car. The loan can’t be used for any other purpose, or to buy a used vehicle. The interest rates start at 5.69 per cent (the comparison rate is 6.39 per cent) and the repayment terms vary from one to seven years. There’s an application fee of $499 and if you pay the loan off within the first three–quarters of the term then there’s an early repayment fee of either $205 or two per cent of the outstanding balance, whichever is greater. The Moneyplace Unsecured Personal Loan This loan is for applicants with an excellent credit rating who wish to consolidate at least two other debts into it. It offers successful applicants the opportunity to borrow amounts between $5,000 and $45,000 at interest rates starting from 7.65 per cent (the comparison rate is the same) up to 10.49 per cent. There are no application, monthly service or exit fees and the terms range from three to seven years. Borrowers can also use this loan to buy a new or used vehicle. Ratesetter Unsecured Personal Loan. Ratesetter is an online loan marketplace. RateSetter car loans starts from 4.69 per cent pa (comparison rate 6.03 per cent pa). RateSetter’s unsecured personal loan rates start from 6.89 per cent pa (comparison rate 8.89 per cent pa). You can compare personal loans from Australia’s banks, credit unions and other lenders at InfoChoice. The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible. The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.