Compare Personal Loans

A secured personal loan requires you to back the borrowed funds by offering one of your assets (such as a car) as collateral. If you fall behind on repayments, the lender could seize the asset put up as collateral to recover the resulting loss. Since these loans pose less risk to the lender, they're often issued with lower interest charges, offering you the flexibility to borrow a larger amount.

An unsecured personal loan doesn’t require you to put up an asset as collateral. Since these loans pose a greater risk to the lender, they could come with relatively higher interest rates. However, the upside of it is that you don't have to fear the loss of your assets if you fail to make timely repayments.

In a fixed rate personal loan, the interest rate stays constant throughout the loan term. In other words, you’ll consistently repay the same fixed amount over the loan’s life. That keeps the concerns about unexpected rate hikes at bay, thus helping you budget better for your expenses.

The interest rate here is subject to fluctuations at any moment throughout the loan term. While you might benefit from lower repayments when rates drop, there’s also the risk of higher repayments when rates spike. However, to help you make the most of dropping interest rates, these loans often provide you with the convenience of making early or extra repayments without any penalty fee.

A line of credit loan lets you draw funds up to your predetermined credit limit as needed. Interest is only charged on the portion of funds that you utilize, not on your total credit limit. As you can see, it operates quite similarly to credit cards. The end goal is to provide you with easier access to funds and greater financial flexibility than that typically offered in traditional loans.

A debt consolidation personal loan allows you to consolidate or combine all your outstanding dues into a single loan. The idea is to simplify your finances with a single repayment, interest rate, and due date to manage in place of multiple ones. What’s more, it often costs you relatively less in interest and fees (especially if you go for a short-term loan).

The rate charged on the outstanding balance of your personal loan is termed as interest rate. It is calculated based on a variety of factors such as the loan amount, loan type (secured/unsecured), loan term, your credit score, and overall risk profile. A high interest rate could significantly increase your minimum repayments and vice versa. Hence, the obvious trick while comparing is to try and find the lowest interest rates available.

The cost of the loan is more than what you pay in interest. When you compare personal loan options, it is equally important to factor in any fees and charges that you might pay for sign-up, early payout, late payment, extra repayment, loan redraw, etc.

A comparison rate, in true terms, reflects the total cost of the loan per year. That’s because apart from the interest rate, it also takes any additional fees and charges that may apply into account. A careful comparison of these rates can keep you from going for a loan that advertises a lower interest rate than others but turns out to be more expensive once selected.

You can either apply for a secured or unsecured loan type. Opting for a secured loan may work for you if your goal is to secure a lower interest rate by offering one of your assets as collateral. Unsecured loans, on the other hand, might charge a higher interest rate but don’t pose any risk to your assets even if you default on repayments.

The interest rate that you pay on the loan can either be fixed or variable, and the choice can greatly influence your total repayments over the loan’s term. A fixed interest rate gives you a clear picture of what your repayments would look like over time. That is not the case with a variable interest loan wherein the interest rate varies as per market conditions.

A loan term refers to the set period within which you’re supposed to repay the loan. Short-term loans may charge you a relatively higher rate, but you’ll also be paying them off sooner, costing you less interest in total over the life of the loan. In contrast, long-term loans tend to have lower monthly repayments but accumulate more interest over time.

Some loans simply offer better flexibility than the rest. Consider additional features such as the freedom of making extra/early repayments without incurring any penalty fee, withdrawing any extra repayments made above the minimum amount due, or even having flexible repayment options available (weekly, fortnightly, or monthly).