A Variable Interest Rate Personal Loan has an interest rate that may change during the loan term. Accordingly your personal loan repayment may change throughout the life of the loan. With Variable Interest Rate Personal Loans you can make early or additional repayments without incurring any penalties.
Fixed interest rate
A Fixed Interest Rate Personal Loan has an interest rate that stays the same for the full loan term. The loan repayment should not change due to interest rate changes throughout the full term of the loan. With a Fixed Interest Rate Personal Loan you cannot pay extra to get ahead in your repayments. The repayment amount specified in your loan contract needs to be paid each week, fortnight or month as per the arrangement until the loan is paid in full. If additional payments are made, charges may be incurred.
Secured
A secured personal loan is a loan in which the borrower pledges an asset eg a car or property as collateral for the loan. The debt is then secured against the collateral so in the event that the borrower defaults the lender can take possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.
Unsecured
An unsecured personal loan requires no collateral or security. This type of loan is supported only by the borrowers creditworthiness, rather than an item of collateral.
