Your selected personal loans
A secured personal loan allows you to leverage an asset, like a car, as collateral for borrowing funds. Explore a wide array of loan options at Mozo to find your match!
Get a secured personal loan with competitive low rates for borrowers with excellent credit. A simple fixed interest rate that can be repaid weekly, fortnightly or monthly, over 1 to 7 years (10 years for Green Loans). Managed entirely online, at any time. No monthly account keeping fees, no exit fees and no early repayment fees. Quick and easy, 100% online application. Establishment fees apply.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
Read our Mozo Review to learn more about the OurMoneyMarket Secured Personal Loan
Your selected personal loans
Secured
Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.
Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.
Read our Mozo Review to learn more about the Jacaranda Finance Express Personal Loan
Your selected personal loans
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Personal loans aren’t a one size fits all product.
Today, they come in many forms to suit the needs of each borrower. Finding the right loan is important, potentially saving you big bucks in interest or even gaining you some much-needed flexibility.
One of the main things you’ll hear when it comes to loans is the distinction between secured and unsecured loans. It can be a little daunting if you’re new to personal finance or not familiar with loans.
If you’ve heard the word "secured" thrown around while looking at loans and are wondering what you’re dealing with, we’re here to help break things down for you.
Think of security on a loan like collateral on a poker game. If you have something to bring to the table, it can be used for its monetary value.
Likewise, if you have a secured loan, a valuable possession (like a car or property) might mean a better interest rate and lower fees.
Secured loans aren't only available for your current assets. Secured loans are very common when it comes to car loans, which are often secured against the car you’re purchasing with the loan. Motorcycle loans and caravan loans operate similarly - vehicles are often used as security on the loans used to purchase them, and can also be used as collateral on other loans due to their high monetary value.
If you’re feeling the weight of multiple debts accruing, you can also use a secured loan to consolidate your current debt. This means bringing together debts like a credit card, store debt and car loan into one singular loan, making it easier to manage. This is referred to as a debt consolidation loan.
If you don't have any assets to secure a loan with and aren’t planning on using it to buy any large value assets, you'll need to look for an unsecured loan. These don’t require collateral to take out the loan and as a result, often have higher interest rates.
This might all have you thinking “Better interest rates? Lower fees? Now then...where do I sign up?” In fact, there’s a little more to secure personal loans than that. It’s important to make sure you factor in all the pros and cons before deciding to take out a secured personal loan:
To avoid putting your assets at risk, it’s extremely important to make sure you can afford the amount you want to borrow. Use Mozo’s personal loan repayments calculator to work out how much you can afford to borrow, and find loans that meet your requirements.
For example: If you crunch the numbers and find you can afford to pay $500 each month, you'll need to make sure the loan amount and term you choose don't exceed this amount each month.
A secured loan requires you to put an asset up as security against the loan. However, this means that the lender can repossess this asset to make up for their losses if you miss repayments and default on the loan.
On the flip side, with less risk involved for the lender, secured loans generally offer better interest rates.
Unsecured loans don’t require collateral, so you won’t have to worry about potentially losing an asset if you ever default on the loan.
However, the trade-off for this is usually higher interest rates because there’s more at stake for the lender without security at play.
Learn more about the different types of personal loans with our guide.
When it comes to secured personal loans, most lenders generally offer both a fixed and variable rate option.
Variable rate secured loans usually offer lower interest rates than fixed rate loans, but they can change at any time. Depending on your financial situation, these may be a good choice for you.
Fixed rate loans generally come with higher rates, but the interest rate (and with that, your loan repayments) won’t change once you're locked in.
Yes, you can pay off secured personal loans early. However, depending on the lender you’re with and the loan you have selected, there might be fees involved in doing so. There also might be restrictions based on the amount of time you have left on your loan term.
Keep in mind, variable rate loans tend to offer more flexible features, like early repayments. Fixed rate loans can be stricter on this sort of thing and often there are additional fees involved, like break costs and/or early payment penalty fees.
If you’re unable to meet your repayments and default on a secured personal loan, then the lender has the right to repossess and sell your asset to recover the loss. This is unfortunate, but it’s also the risk that comes with the lower interest rates of a secured loan.
If this happens, not only will you lose that sweet new car you took a loan out on, but your credit score will also take a hit. This will in turn impact your future ability to borrow and any rates you qualify for at a later date.
If you feel like you could be in danger of defaulting on a loan, you may be able to reach an agreement with your lender due to financial hardship. You may also want to consider seeking financial assistance.
If your asset is repossessed, there is a set course of events that must take place. Within 14 days of the repossession, your lender must send you a written notice informing you of:
The estimated value of the goods
Repossession costs
And any other ongoing costs
They must also provide you with a statement outlining your rights and obligations under the National Consumer Credit Code.
Your lender cannot sell your asset within 21 days of this written notice.
If you pay off the outstanding amount as well as any repossession or other costs within this 21 day period, the lender must return the goods to you.
If you don’t pay off any outstanding payments within 21 days, the lender can sell the asset.
If your asset has been repossessed and you’re seeking help to get it back or resolve the issue, here are some of the different options available:
The first thing you should do before applying for a secured personal loan is determine whether you can afford to pay it back. Like with any loan type, there are always some risks involved when taking out a loan. A secured loan raises the stakes a bit higher.
If you default on a secured loan, the lender has the right to repossess your asset to recoup its losses, so it’s super important to shop around first and only apply for a loan once you’re certain you’ll be able to meet the repayments.
You should also make sure that you’re choosing the right type of loan for your needs - whether this is a debt consolidation loan or a car loan, the options continue to expand and it’s important to end up with the right fit for you.
You can use our secured personal loan comparison table to compare secured personal loan products and lenders until you’ve found one that best suits your financial needs and budget. We have also compiled Mozo’s picks for the best personal loans.
Most lenders will have a choice between a fixed interest rate and a variable interest rate.
Potentially, but you may have to pay a fee and/or it depends on how much time is left on the personal loan. Some lenders will waive fees if there are less than 6 months left on the term.
When taking out a secured loan, you'll usually be given the option between a variable rate that can change with the market or a fixed interest rate that is locked in for the life of your loan.
Other than interest rates, there are also a few features that could come in handy down the track:
Possibly! Here are some you may need to budget for:
Application fee: Some providers charge a one-off fee to process your application and cover costs like general administration and accessing your credit report. This could be anywhere between $200-$500.
Ongoing fee: Usually charged monthly, an ongoing fee will generally be much lower than the application fee. However, keep in mind that it could end up costing you far more if you take out a loan over a long period. For instance, over 10 years, a $10 monthly fee will add up to a whopping $1,200.
Break cost fee: While exit fees on variable rate loans were banned in 2011, did you know you could still be charged for paying off your fixed-rate loan early? So make sure you sign up with a loan that offers fee-free extra repayments and doesn't charge a penalty for exiting your loan before the agreed timeframe.
Late payment fee: If you can't keep up with your repayments, you could be hit up with a late payment fee. The nasty thing about these fees is you'll continue to be charged until you're back on track with your repayments. So make sure before you take out a loan, you can reasonably afford the repayments by drawing up a budget.
It depends on your circumstances. Here are some ways you can find a secured personal loan deal to suit your situation:
Your credit rating can be damaged without you even knowing it. For instance, if you start applying for multiple loans in a short period of time, each provider will run a credit check on you, leaving their fingerprint on your report each time. The more times a provider runs a credit check (or worse, rejects you for a loan), the worse your credit history will look.
So before you apply for a secured loan, we recommend you use sites like mycreditfile.com.au or checkyourcredit.com.au to check your credit report. Check to make sure everything's correct. If they've got you listed in the red, or some of your details are wrong, then this could affect your chances of being approved for a loan.
Another reason you'll want to ensure your credit rating is in tip-top shape because some providers use a tier-based pricing system, which means the better your credit rating, the better the rate you'll be offered.
Does a secured loan get your tick of approval? Head up to the top of this page to kick off your comparison!
Great Southern Bank’s fixed personal loan offers competitive rates, flexible terms, and excellent customer service. Pros include stable rates and responsive support. Cons are potential early repayment fees and fewer online features compared to some competitors.
Read full reviewGreat Southern Bank’s fixed personal loan offers competitive rates, flexible terms, and excellent customer service. Pros include stable rates and responsive support. Cons are potential early repayment fees and fewer online features compared to some competitors.
The tax office gave us the largest taxi bill of our lives when we’re not even rich and I cried for about a week before having to sort out 2 personal loans to pay for it. Westpac were so lovely in helping us work out the best method. This was so upsetting so they helped us work it All out.
Read full reviewThe tax office gave us the largest taxi bill of our lives when we’re not even rich and I cried for about a week before having to sort out 2 personal loans to pay for it. Westpac were so lovely in helping us work out the best method. This was so upsetting so they helped us work it All out.
I think the com bank is a great bank good rates and friendly staff
Read full reviewI think the com bank is a great bank good rates and friendly staff
Your selected personal loans