How do personal loans work?

A personal loan allows you to borrow money and pay it back in instalments over a fixed term. You’ll be charged a fixed rate of interest, which will be added to your repayments. Paying back the exact same amount each month helps to manage your outgoings and ensures you’re borrowing within your budget.

Personal loans give you access to money quickly so you can achieve a variety of goals. Whether you want to buy a carconvert your loft or go all out for the wedding of your dreams, a personal loan is a great way to spread the cost of a big purchase.

Our personal loans guide is the place to go if you want to find out more.


What happens if you fail to repay a loan?

If you’re unable to repay your loan, we’re here to help. Once we understand your current circumstances, we’ll be able to advise the most suitable option or establish a payment arrangement that is affordable for you. We may ask for information about your financial situation to ensure we put the most suitable arrangement in place.

*Disclaimer & Example: For our Small Loans of $2,000 or less, an APR (Annual Percentage Rate) doesn't apply. These loans are fee-based only with a term between 62 and 180 days, and so the APR is 0%. The establishment fee is 20% of the amount borrowed and the monthly fee is 4% of the amount borrowed. Representative example: a loan of $1,000 repaid over 3 months equates to a total amount payable of $1,320 comprised of $1,000 principal (amount borrowed), $200 establishment fee and $120 in monthly fees. The maximum comparison rate on loans between $300 and $2000 is 199.43%.
For our Medium Loans between $2,100 and $5,000, with a term between 2 months and 12 months, the maximum Annual Percentage Rate (APR) is 48% (Comparison rate 65.6597% p.a.) and there is a $400 Establishment Fee. A Medium Loan of $3,000 borrowed over 1 year would equate to a total amount payable of $4,289 (including a $400 establishment fee).

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR %). The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

© 2023 Owned by Australian Synergy Finance Pty Ltd, ABN 54 613 655 646. Australian Credit Licence 490422. The information on this webpage is general information only and does not take into account your objectives, financial situation or needs.