Secured personal loans let you borrow against your car or other asset in return for a lower interest rate. Compare secured loans in Australia with Mozo and find a loan to fit your borrowing needs.Read more
A secured loan is a loan when an asset owned by you is put up as security for the loan. In return for putting up the asset as security you generally pay a lower interest rate as their is less risk to a lender. An unsecured loan is where you don’t have to put up any collateral for the loan but because there is higher risk, you generally have to pay a higher interest rate. For more info, check out our guide on types of personal loans.
Most lenders will have a choice between a fixed interest rate and a variable interest rate. Variable rate secured loans often have more flexibility such as extra repayment options and redraws but rates are usually higher than fixed rates. Fixed rate loans are lower but you don’t have the ability to change your repayments.
Yes, but you may have to pay a fee and/or it will depend on how much time is left on the personal loan. Some lenders will waive fees if there is less than 6 months left. Variable rate loans generally also have more flexibility with early payouts. With fixed rate personal loans, you’ll generally have to pay break costs on top of an early penalty fee so this is a more expensive option.
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