Your guide to shopping for a personal loan

Personal loans can be a game-changer when you need quick funds for big ideas.

Whether you're planning a dream wedding, renovating your home, or managing debt, a personal loan could help you cover the upfront costs.

With different types of personal loans available, it's about finding one that works for you.

Here’s a guide to help you shop with confidence.

Should I choose a secured or unsecured personal loan?

A secured personal loan requires you to offer an asset, such as a car, as collateral. Since the lender has security if you can’t repay the loan, they tend to offer lower interest rates.

As unsecured personal loans don’t require collateral, interest rates are usually higher with the lender taking on more risk. This could be a good choice for borrowers with strong credit histories without an asset to put forward.

How do I compare personal loans?

When comparing personal loans, the comparison rate is a great place to start. It combines the interest rate with other fees and charges to give you a better understanding of the loan’s true cost.

While comparison rates are helpful, it’s also important to consider other factors such as the loan amount, loan term, and repayment options.

What is the best loan term?

Your loan term will impact how much you pay each month and how quickly you repay the loan in full.

A shorter loan term typically means higher repayments, so this could be best if it fits your budget, and you want to pay the loan off faster.

On the other hand, a longer term may lower your regular repayments, offering more affordability upfront. However, you could pay more interest overall.

What will my personal loan repayments be?

Your repayments will depend on things like the loan amount, interest rate, and loan term chosen. Some lenders also offer a choice of monthly, fortnightly, or weekly repayments, which can help make budgeting easier.

Before applying for a personal loan, consider using a loan repayment calculator to see how different terms and features could work for you.

Is it easy to apply for a personal loan?

The process of applying for a personal loan differs from lender to the lender. While some may ask for extra paperwork or require you to visit in person, others make the process nice and easy.

With Liberty, you can complete your online application quickly. If you accept your personal loan offer 3pm, you’ll have the funds in your account the same day.

Can I see my interest rate before applying?

Some lenders offer tools to give you an idea of your personal loan interest rate before applying. With Liberty's online rate estimate tool, you can find your personalised rate without impacting your credit score and it only takes a few minutes.

How do I get started?

If you’ve been thinking about applying for a personal loan, it could be easier and faster than you think.

Explore our flexible personal loan options today, and when you’re ready, apply online in just a few minutes.

Approved applicants only. Lending criteria apply. Fees and charges are payable. Liberty Financial Pty Ltd ACN 077 248 983 and Secure Funding Pty Ltd ABN 25 081 982 872 Australian Credit Licence 388133, together trading as Liberty Financial.