Loan products / Personal loans
A personal loan is a fixed-term loan with a fixed repayment, used for a stated purpose. What changes between purposes is not the product so much as the lender policy behind it. We compare 130+ lenders and charge a $0 broker fee.
Personal loans are one of the most flexible finance products in Australia. Unlike a car loan or a home loan, which must be used for a specific purchase, a personal loan can fund almost anything, from consolidating high-interest credit card debt to a renovation, a medical procedure or a tax debt.
The loan runs for a fixed term with a fixed repayment, which is what makes it predictable: there is a date on which the debt is gone, and you know it before you sign. How much you can borrow, and what it costs, depends on your income, your existing commitments, your credit history and whether the loan is secured against an asset. Those figures differ substantially between lenders, so the useful question is not what a rate table says but which lender’s policy fits your situation.
NIK Finance brokers compare 130+ lenders to find the right structure for your purpose, at a $0 broker fee. Lenders pay us a commission when a loan settles, and we disclose that in writing before you proceed.
Every purpose has its own lender policy. These are the most common.
Combine credit cards, store cards and existing personal loans into one repayment. It only saves money if the new rate beats the weighted average of what you are paying and you keep the repayment level.
Buying a vehicle, where secured car finance is usually cheaper than an unsecured personal loan. A personal loan can still suit an older vehicle that lenders will not take as security.
Car PurchaseRenovating, where the real choice is between an unsecured loan, a construction home loan and equity release. Whether the work is structural decides which one applies.
Home RenovationsElective surgery, dental work, IVF or an unexpected medical bill. Lender attitude varies by procedure type, and the clinic’s own payment plan is worth comparing before you borrow.
Medical & DentalPaying out a balance owed to the ATO so the debt sits with a lender instead. Since 1 July 2025 ATO interest charges are no longer deductible, which changed the arithmetic.
ATO Tax DebtA trip has no resale value and produces no income, so the loan should never outlive the trip. Borrowing is more defensible for a family emergency or a genuinely fixed date.
Venue and supplier deposits fall due long before the balances do, so the timing of the drawdown matters as much as the amount. Borrow the gap, not the budget.
Courses and certifications outside the HELP system. If you are eligible for HECS-HELP or FEE-HELP, exhaust that first, because repayments there are income-contingent.
Every purpose has its own lender policy. These pages cover what changes for each.
Understanding the difference helps you choose the right loan type for your situation
| Feature | Secured Loan | Unsecured Loan |
|---|---|---|
| Security | An asset backs the loan, commonly a vehicle, term deposit or property | Nothing is held as security |
| Interest rate | Generally lower, because the lender has recourse to an asset | Generally higher, because the lender carries more risk |
| Maximum amount | Generally higher, and shaped by what the asset is worth | Generally lower, and shaped by your income and commitments |
| Speed | Slower. The asset usually has to be valued and registered | Faster. No valuation and no security to register |
| Credit profile needed | More forgiving, since the security reduces the lender’s exposure | Assessed more heavily on credit history and conduct |
| If you fall behind | The lender can repossess and sell the asset to recover the debt | No asset is repossessed, but the debt is enforceable and default is recorded |
How much you need, what it is for, and your financial situation. The purpose matters, because it changes which lenders will look at you.
A NIK Finance broker compares 130+ lenders and identifies which ones will approve your situation, before anything is lodged.
We submit to the lender whose policy fits. Applying to several yourself leaves several enquiries on your file and makes each one harder.
We search banks, credit unions and specialist lenders, rather than the one panel a single bank can show you.
Defaults, bankruptcies or a low credit score narrow the lender pool but do not always close it. Approval is never guaranteed.
You pay nothing. Lenders pay us a commission when your loan settles, and we disclose it in writing before you proceed.
Two lenders with near-identical rates can take opposite views on your purpose or your income type. Matching policy is what determines approval.
If borrowing is the wrong call for your situation, we will tell you that instead of writing a loan that fails.
The Kreddi Score shows where you stand and which lenders you qualify with, before any application.
Common questions about personal loans in Australia
Almost anything. Common purposes include consolidating debt, renovations, medical and dental costs, a vehicle, a wedding, travel, education and paying out a tax debt. Lenders ask the purpose because it changes how the application is assessed, and several purposes have their own products and their own policy.
A secured personal loan is backed by an asset such as a car or term deposit, which lowers the lender’s risk and generally means a lower rate and a higher maximum amount. An unsecured loan takes no security, so it is faster to arrange but priced higher, and no asset is repossessed if you fall behind.
That depends on your income, living expenses, existing commitments, credit history and, for a secured loan, the value of the asset. Maximum amounts differ substantially between lenders, and the amount you qualify for is usually lower than the maximum advertised. A borrowing power estimate is the sensible starting point.
Some lenders consider applicants with defaults or missed repayments, usually with more documentation and at a higher rate. Approval is never guaranteed and depends on your income, current commitments and how recent the credit events are. Checking which lenders would consider you first avoids adding enquiries to your file.
A personal loan gives a fixed repayment and a fixed end date, so the balance clears on a known day. A credit card offers only a minimum repayment, which is designed to keep the balance alive. The loan usually wins on certainty. Whether it wins on cost depends on the rates you are actually offered.
It varies by lender and depends heavily on how complete your application is. Having identification, recent payslips and bank statements ready is the single biggest factor. Secured loans take longer because the asset needs valuing. No lender can guarantee a timeframe, so treat advertised speeds as best cases.
Whether you need to consolidate debt, fund a renovation, cover a medical cost or pay out a tax debt, NIK Finance brokers compare 130+ lenders to find the lender whose policy fits your situation.
Start with a free quote. It has no impact on your credit score, and you will get a straight answer on whether borrowing is the right move.
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