Personal Loan Interest Rates

In a nutshell, a personal loan lets you borrow a set amount of money from a financial institution. You repay the borrowed amount of money with interest over an agreed fixed term. Personal loans can be used for a variety of personal expenses.

When you take out a personal loan or generally any loan, you’ll have to pay back both the amount you borrowed and the interest on top of it. It is a fee that you are charged for borrowing the money over an agreed-upon term.

With Jacaranda, our personal loans ranging between $2,500 and $15,000 have a starting rate from 11.42% p.a. and a comparison rate from 14.49% p.a. For example:

Based on a loan of $10,000 over 36 months a borrower with an excellent credit history can expect to pay a total of $12,389.76.

Remember, this comparison rate is true only for this specific example given and therefore, may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.

A comparison rate is designed to help you understand the overall cost of a loan based on several relevant factors, rather than just the interest rate. Each comparison rate accounts for the:

• Amount of the loan
• Loan term
• Repayment frequency
• Interest rate
• Fees and charges

It’s important to keep in mind that the loan with the lowest interest rate isn’t always the cheapest option. When researching products offered by different providers, you can use comparison rates as a more accurate indicator of the cost of a loan. This can help you make a better informed decision about which option might suit your needs.

Choosing between a fixed rate personal loan and a variable rate personal loan will largely depend on your personal situation and needs. This is why it helps to know the difference between the two personal loan rates.

A fixed personal loan has an interest rate that stays the same for the whole loan term. A variable personal loan has an interest rate that is subject to change, based on the market. At Jacaranda, our personal loan interest rates are fixed. Here’s a quick breakdown of some of the key benefits of each interest rate:

Fixed interest rates:

Fixed repayments: Your repayments stay the same each month, which can give you more certainty throughout your loan, as well as making it easier to budget.

Automatic repayments: You can choose to set up automatic repayments for the life of the loan, giving you one less worry to think about.

Variable interest rates:

Fewer repayment costs: You can make early repayments or pay off your loan sooner without having to pay any exit fees or break costs.

More flexibility: Some variable personal loans act as a continuous line of credit. Meaning, you can access your available funds if you need money for an emergency. However, there may be fees for doing this.

Unsecured loans

Unsecured personal loans are personal loans that don’t require collateral to be attached to the loan as security. What this means is that you can get the cash you need without using your car or vehicle as collateral. It can also be easier to qualify for an unsecured loan because it doesn’t have as many eligibility requirements.

Ultimately, these types of loans are usually only available for smaller amounts, since they do hold a much higher risk for lenders. Unsecured personal loan rates are also often higher as a result of this increased risk

Secured loans

A secured loan is a method of borrowing money that requires you to attach an asset to your loan agreement as security. This means that if you’re unable to repay your loan the lender can take possession of your asset to cover the cost. Given the lower risk to the lender, a secured loan allows you to borrow a larger sum of money than an unsecured loan. You can often get better interest rates on secured loans as well.