What is a Personal Loan?

A personal loan is an amount of money borrowed from a lender, between $2,000 and $100,000, which is repaid in regular instalments for a period of between one and seven years. Personal loans can be secured or unsecured, and are used to finance a holiday, pay sudden bills or expenses, consolidate debt, or for any other personal expense. 

If you are applying for a secured personal loan, you will need to provide the lender with proof of your assets and details of any assets you wish to use as collateral.

To help you compare personal loans, we’ll look at the two main types offered in Australia:

• Secured Personal Loans 

• Unsecured Personal Loans

Understanding how these two types work will also help you compare other types of personal loan that may be available to you.