Personal Loan Repayments 101

As a responsible borrower, you are required to pay back the loan over time, and not doing so can have negative consequences.  

With Jacaranda Finance, we aim to make the repayment process on your loan as streamlined and flexible as possible. 

If you have a loan but aren't sure how it all works, here’s our breakdown of all you need to know about personal loan repayments.

On this page:

• How do personal loan repayments work?
• How much are personal loan repayments?
• What are the average personal loan repayments?
• What are the average personal loan fees?
• How do I repay my personal loan?
• What happens if I miss a repayment?
• Can I repay my personal loan earlier?
• Jacaranda Finance Personal Loans

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How do personal loan repayments work? 

When you borrow money through a personal loan, you repay it in regular instalments with interest. These instalments are usually structured at the start of the loan and 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? 

Personal loan interest rates can be fixed or variable, depending on the loan and the lender. 

A fixed-rate loan guarantees a fixed interest rate for a set period, known as the fixed term. For personal loans, this fixed period will often be the entire duration of the loan term, meaning your minimum repayments won’t change from what’s set out in your loan contract.

A variable-rate loan, on the other hand, does not have one set interest rate for the duration of the loan. Instead, the interest rate can change due to a number of factors, including the Reserve Bank of Australia’s (RBA) official cash rate decisions, the lender’s market position, competitor movements and the economy as a whole.

At Jacaranda, we charge fixed interest rates on our personal loans, which can help provide more certainty in your monthly budget.

How much are personal loan repayments?

Personal loan repayment sizes are influenced by a range of factors, with the main ones being:

• Your interest rate
• How much you borrow
• How long the term is
• Any associated fees on the loan
• Whether you make any extra repayments on top of your minimum.

Generally, the more you borrow, and the longer you borrow it for, the more you’ll end up paying overall. Smaller ongoing loan repayments can sometimes be deceiving, as they can add up to a more significant overall cost compared to a shorter loan with larger monthly payments.

Use our loan repayment calculator to see the difference these factors can make to your estimated personal loan repayments.

What are the average personal loan repayments?

There aren’t many statistics available on the average personal loan repayments, as plenty of factors determine their cost. However, we can make a rough estimate based on the average amounts borrowed and some average interest rates.

According to Finder's Consumer Sentiment Tracker for July 2024, NSW residents had the highest average personal loan debt of $10,255, compared to $2,982 in the ACT, which was the lowest. 

On average, this is equal to just over $5,810 per personal loan.

State	Average Personal Loan Debt
NSW	$10,255
VIC	$7,460
QLD	$4,918
ACT	$2,982
TAS	$3,210
WA	$5,261
SA	$6,588

Interest rates on personal loans can vary widely depending on the person and the lender, but the average fixed-term rate in 2024 is 11.05% p.a., according to the RBA. According to Money.com.au, this can be higher for new loans funded, at 13.87% p.a.

Assuming no upfront or ongoing fees, here’s what the monthly repayments would be on a $5,810 loan at 11.05% p.a:

Loan Term	Monthly Repayments	Total Interest Paid
2 Years	$270.93	$692.23
3 Years	$190.35	$1,042.58
5 Years	$126.47	$1,778.10

What are the average personal loan fees?

Generally, personal loans can come with a range of additional fees and charges, which can include:

• Establishment fees;
• Ongoing fees (monthly, annual, or other);
• Extra repayment fees
• Early repayment fees;
• Missed repayment fees;
• Documentation fees;
• Encumbrance/REVV check fees;
• Risk fees
• Early exit fees;

According to our Guide to Personal Loan Fees, here are the average, minimum and maximum amounts you could expect to pay for some of the above:

Fee	Average	Minimum	Maximum
Establishment fee	$270	$0	$600 - $1,800
Annual fees	$1	$0	$110
Monthly fees	$2	$0	$15
Other ongoing fees	$5	$0	$400
Extra repayment fees	$10	$0	$25
Early repayment fees	$100	$0	$300
Missed repayment fees	$25	$0	$50
Documentation fees	$5	$0	$100
Encumbrance/REV check fees	$5	$0	$100

How do I repay my Jacaranda Finance personal loan?

With Jacaranda Finance, making loan repayments 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 aligns 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.

You can view your repayments from either the Better Credit app or online portal and contact our friendly customer service team to request any necessary changes.

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. As the table above shows, these missed payment fees can be around $25 on average, often more. 

While missed payment fees are bad, the potential long-term impacts are worse, particularly for your credit score. A third of your credit score is made up of late payments, and if you’re not keeping up with them, it can cause significant issues. 

According to Equifax, if you make a payment on a credit card or loan more than 14 days late and it is not remedied within the same calendar month, it may be recorded on your credit report as part of your repayment history information.

Experian, another major credit reporting body in Australia, says that missing just one repayment could drop your credit score by 22%, even if it’s just a one-off fluke. This increases to 26% for two missed payments and a whopping 42% for three or more! 

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Contact us before you miss a repayment

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. 

You can also get in touch with us yourself as soon as possible.

Neglecting to contact us as soon as you know you have missed a repayment could result in additional charges. 

If you think you’ll miss a future repayment, also contact our customer service team at least 24 hours before the repayment date. We offer several options to help you keep your loan on track.

Financial hardship explained

If you’re struggling to repay your loans or debts, you could be eligible for financial hardship assistance.

Financial hardship is an unexpected expense or event that may prevent you from maintaining your regular repayments. If this happens, your bank or lender may be able to offer you a temporary or permanent alternative arrangement to help you get back on track. 

While banks and lenders are not obligated to accept hardship requests, they are required to respond to requests for hardship and be fair and reasonable when considering a financial hardship claim.

Learn more about how financial hardship works here, or get in touch with Jacaranda to find out more about our own hardship assistance options.

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, but you recently got a nice tax return and want to pay an extra $500 into your loan.

In some cases, it may be beneficial for you to make additional repayments towards your loan, as your balance will drop faster and you will end up paying less in interest overall.

Some loan providers charge an early repayment fee for this and 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 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;
• Log into your client portal or
• Download our Better Credit app

Our Better Credit app is the easiest way to manage your Jacaranda Finance loan.

Consider a Jacaranda Finance Personal Loan

Every year, banks fail millions of Aussies who need to borrow money. They tend to have very rigid processes for assessing applications and don’t think outside the box.

We at Jacaranda Finance think this is unfair, as we know things like your credit score don’t define you. So when the banks say no, give us a go. We’re here to be your backup when you need us.

Our Personal Loan is a fast finance solution for everyday working Australians. It is available from $3,000 to $25,000, with loan terms ranging from 25 months to 36 months. We also offer Car Loans starting from $10,000.

You could apply for one of our loans in as little as 5-12 minutes¹, with same-day approvals² and 60-second transfers available once approved³.

Check if you qualify today without impacting your credit score at all!