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How do personal loan repayments work?

Whether you’ve got your heart set on a Hawaiian holiday or the wedding of your dreams, a personal loan could be a way of funding your idea without dipping into your savings.

The way personal loans are usually structured means that you’ll have a clear idea of how much repayments will be, as well as the loan’s length and end-date, right from the outset so you can always see where you stand.

This can be helpful when figuring out how to budget for a big project, but could also help if you want to refinance existing debts into a new loan with a lower interest rate to help you save on interest and repayments.

Repayments for each loan are based on a few factors, including the amount borrowed, the term of the loan and whether the interest rate is fixed or variable.

How much can I borrow?

The amount of money you could access may depend on the type of loan. If you take up an Unsecured Personal Loan (which isn’t secured with something you own, like your car or home), you can typically borrow around $4,000 to $50,000. A secured personal loan, such as the Westpac Car Loan, often allows you to borrow more ($10,000 to $100,000), but that’s because it’s secured over an asset such as a car.

What’s the interest rate?

The rate you pay on a personal loan varies depending on the loan and the bank it’s from. As a secured personal loan uses an asset of yours as security, the interest rate may be lower than on an unsecured personal loan as the risk is lower for the lender. Nevertheless, many unsecured personal loans still have competitive rates that can be lower than some credit cards, so you may want to consider one if you would like to access extra cash or consolidate more expensive debts.

Are you considering debt consolidation? Learn more.

Is it fixed or variable?

Both secured and unsecured personal loans often allow you to choose between a fixed rate that doesn’t change for the loan’s term and a variable rate, which can change. Westpac personal loans are always fixed, so you know exactly how much you’ll need to pay over the loan term.

Another option is something referred to as a line of credit loan. This loan type allows you to use funds as and when needed up to an agreed credit limit and offers more flexible payment options than fixed term loans. The Westpac Flexi Loan is a line of credit loan with a variable rate, which means the amount of interest you pay on what you’ve used might change over time.

How often are the repayments?

While most personal loan repayments are monthly, you may also get a choice to pay them weekly or fortnightly.

How long’s the term?

Many banks offer you a loan term from 1 to 7 years, so you can choose the length of time that lets you pay it back comfortably.

See how a personal loan would work for you

If you’re wondering whether a personal loan could be a good option for you, the Westpac Personal Loan Repayment Calculator lets you put in the amount you’d like to borrow to see what your repayments would be. This can be a handy way to work out whether it would fit within your budget.

If you’re ready to get started, read more about Westpac personal loans.


Things you should know

Online Banking Terms and Conditions (PDF 236KB)

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice. Please consider your individual circumstances before applying for a Westpac Personal Loan. Credit criteria, fees, charges, terms and conditions apply. Information correct as of 19 May 2022. 

^Comparison rates: Comparison rates help you understand the true cost of a loan. All comparison rate examples shown are for a personal loan amount of $30,000 and a term of 5 years. WARNING: Comparison rates apply only to the example or examples given and may not include all fees and charges. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

  • Unsecured Personal Loan repayment terms range from 1 to 7 years. Interest rate ranges and representative examples are based on an unsecured loan of $30,000 borrowed for 5 years with the interest rate of 7.99% p.a. (comparison rate 9.18% p.a.), the estimated total amount payable including fees is $37,513. The actual rate offered may be higher or lower than the comparison example above. Rates currently range from 7.99% p.a. to 17.49% p.a. (comparison rate from 9.18% p.a. to 18.62% p.a.)
  • Car Loan repayment terms range from 1 to 7 years. Interest rate ranges and representative examples are based on a personal loan of $30,000 borrowed for 5 years with the interest rate of 6.49% p.a. (comparison rate 7.69% p.a.), the estimated total amount payable including fees is $36,224.