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Hooray! You have been approved for a loan! What now? As a responsible borrower, you’re required to pay back the loan over time, and not doing so can have some negative consequences.  

With Jacaranda Finance, we aim to make the repayment process as streamlined as possible, so you can get back to living your life without a financial cloud over your head. 

If you’re thinking about getting a personal loan but aren’t sure how they work, here’s our breakdown of all you need to know about personal loan repayments. 

On this page:

How do personal loan repayments work? 

When you borrow money for a personal loan, the money is then repaid in regular instalments with interest. These instalments are usually structured at the start of the loan and are laid out in your contract, giving you an indication of what your exact payments will be each time. 

Are personal loan rates fixed or variable? 

Depending on the loan and the lender, personal loan interest rates can be either fixed or variable. At Jacaranda, we charge fixed interest rates, which means your minimum repayments will stay exactly the same for the duration of your loan. 

This is different to variable interest rates, which can change at the lender’s discretion. We don’t do that here, providing you with more certainty when it comes to your monthly budget. 

How much are personal loan repayments?

When you borrow with Jacaranda Finance, your loan repayment amount will be determined by a number of factors, mainly:

  • how much you borrow
  • how long the term is
  • the interest rate we allocate to your loan
  • and any associated fees and charges

For example, Sally wants to borrow $5,000 for some car repairs and wants to pay it off over 12 months. Sally qualifies for Jacaranda’s ‘Excellent Credit’ personal loan at 11.42% p.a. (20.22% p.a. comparison rate*). Her repayments would be $451 per month, or just over $100 a week. 

If Sally decides she wants lower monthly repayments, she could apply for an 18-month term instead of 12-month, which would reduce her monthly repayments to $300. 


Check out our loan calculator to get an estimate of what your repayments may be. 

This calculator takes into account the amount you want to borrow and for how long. Please note that this may not be an accurate estimation, as it doesn’t take into account your personalised interest rate. The actual repayments along with an explanation of all fees and charges will be provided to you in your loan offer. 

How do I repay my Jacaranda Finance personal loan?

With Jacaranda Finance, making repayments on your loan couldn’t be easier. When you’re approved for a loan we’ll set up a direct debit when your repayments are due which usually sits in line with your pay cycle. 

This means you don’t have to remember to make your payments each week, fortnight, or month; it’s simply debited automatically from the bank account you provide us. When your loan has been paid in full, the direct debits will stop.

Alternatively, you can choose to make your repayments manually if you wish, but this can make it more likely you’ll miss one…

What happens if I miss a repayment?

For most lenders, missing a loan repayment will result in a fee, often known as a dishonour fee or late payment fee.

When the team at Jacaranda Finance is notified of your missed repayment, we will endeavour to contact you to work out what has happened and how we can move forward. If for any reason you don’t receive a call from us, get in touch with us as soon as possible. Neglecting to contact us as soon as you know you have missed a repayment could result in additional fees, interest and charges. 

If you think you’ll miss a future repayment, also get in touch with our customer service team at least 24 hours before the repayment date. We provide a number of options to help you keep your loan on track. 

Can I repay my personal loan earlier?

Yes, you can choose to make additional repayments to your personal loan in addition to the required minimum payments. For example, your repayments might be $300 a month like the example above, but you recently got a nice tax return and want to pay an extra $500 into your loan.

It’s actually beneficial for you to do this: the quicker you pay out your loan, the less you will pay in interest, as you’re reducing the total amount that’s being charged interest. 

Some loan providers charge an early repayment fee for this, as well as an early exit fee if you pay off the entire loan ahead of schedule. But at Jacaranda Finance, we don’t charge you any fees for making any extra repayments or for paying your loan out early, as we want to encourage responsible borrowing. 

If you want to make some additional repayments on your personal loan, all you need to do is contact our customer service team or log into your client portal and choose an option that is easiest for you.


Example:

Jeff borrows $5,000 with a 24-month term on our ‘Excellent Credit’ loan with an 11.42% p.a. interest rate (20.22% p.a. comparison rate*), and he is making his minimum required $225 monthly repayments on schedule. 

He receives a pay bump at work and decides to put an extra $100 a month into his loan, taking his monthly repayments to $325. 

By making those extra repayments, Jeff would save nearly $200 overall on his total loan cost and could pay it off seven months ahead of schedule! 


How can I apply for a Jacaranda Finance Personal Loan?

To apply for a Jacaranda Finance Personal Loan, simply submit an application through our 100% online application process. Our process is one of the quickest in the business: 90% of applicants will receive an instant outcome. The rest should hear back from us within an hour of submitting an application. 

You’ll need a few important documents when applying, like some basic personal information and some online banking details. But if you need access to money fast, a Jacaranda Finance personal loan could be what you’re looking for. 

Photo by Bench Accounting on Unsplash

Written by: Jemima Kelly

Jemima Kelly is a Content Writer at Jacaranda Finance. She is enthusiastic about accurate and informative content, and holds a Bachelor of Creative and Professional Writing from QUT.