Quick guide to taking out a personal loan

Quick guide to taking out a personal loan

A personal loan can be a fast and straightforward way to help you reach your goals sooner.

Whether it’s for a holiday, car or wedding, there will likely be a time in your life when you need to borrow money. There are several different options available to you for this, including a credit card, personal loan or personal overdraft.

If you’ve done your research and decided that a personal loan is your best option, it’s usually simple and straightforward to set up. There are just a few things you need to consider before you apply.

How much do you need and what can you afford?

If you’re making a purchase like a new car or just looking to consolidate your debts, figure out exactly how much you’ll need to borrow. CommBank offers unsecured personal loans between $5,000 and $50,000, while for CommBank Secured Car Loans you can borrow from $10,000 with no maximum amount.

The interest rate will determine how much your repayments will be on the amount you choose. A personal loan that is secured with an asset like a car typically has a lower interest rate, because in the event that you stop repaying the loan the lender can sell the car to cover the cost of the loan. With our borrowing calculator you can estimate how much you can borrow without compromising your lifestyle.

Choose your type of loan

There are three types of CommBank personal loans:

A Fixed Rate Personal Loan

With this type of loan you can lock in an interest rate and set your repayments for the term of the loan. It can be suitable if you want to know exactly what your repayments will be and how much you’ll repay in total, and you’ll also be protected should interest rates rise in the future.

A Variable Rate Personal Loan

This loan gives you flexibility to make extra repayments without incurring any fees for repaying early. By doing this you can minimise the debt you’re paying interest on quickly, and even redraw additional payments if you need extra money.

A Secured Car Loan

In exchange for using your car as security for your loan you can borrow at a lower interest rate than an unsecured loan, making the repayments more affordable. It can be suitable if you’re borrowing to buy a car that’s less than five years old and are looking for fixed repayments for the life of the loan.

Choose your terms

Once you know how much you need and what type of loan you’d like, think about the timing:

  • How long will you need to pay off your loan? You can choose a term between one and seven years for Variable Rate and Fixed Rate personal loans, and between one and five years for Secured Car Loans
  • How often would you like to make repayments? You can choose to repay weekly, fortnightly or monthly.

Make sure you’re familiar with the fees and charges that may apply. Typically, there will be fees to establish and to service the loan, and if you have a fixed rate loan there will also be a fee if you want to pay off your loan early.

How do you apply?

You can apply online anytime. There are just a couple of things like your driver’s licence to have on hand when you’re ready to apply – find out what you’ll need

You can also call us on 13 14 31 or visit your nearest branch.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. You should consider seeking financial advice before making any decision based on this information. Applications are subject to credit approval. Full terms and conditions will be included in our loan offer. Fees and charges apply. Commonwealth Bank of Australia ABN 48 123 123 124. Australian Credit Licence 234945.