Secured Personal Loans – Interest Rates and Offers Available in Australia
Secured personal loans are loans that require some sort of collateral in order to guarantee the loan.
These loans are becoming more and more common as lenders become increasingly risk averse. It’s a good idea to educate yourself about secured loans and how they benefit you and the lenders before you make your decision.
Benefits of Secured Personal Loans for Lenders
Secured personal loans offer security to lenders that the borrower will make a Herculean effort to repay the loan. Why is that? The short answer is because the borrower must present item(s) of worth as a “guarantee” of repayment. This is known as a “securing” the loan. If the borrower defaults on the loan then he or she must forfeit the item used to secure the loan in the first place.
The lending agency feels more confident when lending money on a secured loan that they will indeed receive repayment for the loan as well as the corresponding interest. They are more willing to lend to borrowers who present greater risk of loan default as a result because they know they will gain something of value to help cover their losses is the loan is defaulted on.
Benefits of Loans that are “Secured” to Borrowers
Borrowers benefit from these loans in two different ways. First, borrowers with questionable credit histories are often able to benefit from secured personal loans. In fact, many borrowers trying to improve credit scores will take out one of these loans for the purpose of rebuilding credit alone. If you have a need for a personal loan and fear that you will be turned down based on past credit problems, consider going the route of a secured loan instead and see if that doesn’t improve your odds.
The second benefit to borrowers is that it can serve to guarantee lower interest rates. The interest rate on the loan is the amount of money you will ultimately pay for the loan. Reducing the interest rate, depending on the size and duration of the loan, can have a huge impact on the amount of money you ultimately pay for the privilege of borrowing the money in the first place.
If you need money for one of life’s little emergencies, want to re-establish your credit, or just want need a little help to make a special purchase, secured personal loans may be the right solution for you.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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