Fixed Rate Personal Loan

What is a fixed rate personal loan?

In a nutshell, a fixed rate personal loan entails paying the same interest rate until you finish your loan term. This means your rate won't be affected when the market interest rate fluctuates. The great thing about this loan option is you will know exactly how much the interest rate will be the entire term of your cash loan.

Is it better to get a variable or fixed rate personal loan?

Compared with a variable rate personal loan, a fixed rate personal loan has its pros and cons. You will need to weigh the benefits and determine which loan option is best for you.

A clear advantage of having a fixed rate loan is that you'll always know the exact amount of your repayments until the end of your loan term since the interest rate is unchanging. This helps reduce stress, knowing that even if the market interest rate changes, your fixed interest rate will not. That said, interest rates and fees on fixed rate personal loans tend to be higher. There are fixed rate loans that charge a fee if you decide to pay out the loan early, which may keep you from making extra repayments or possibly put a cap on your repayments. We highly recommend looking at the specific conditions on your personal loan. However, flexibility is usually not a feature offered by fixed rate personal loans compared to variable loans.

If you're looking to apply for a debt consolidation loan, having a fixed rate personal loan could mean consistent repayments. Budgeting is usually more difficult with a variable rate personal loan, especially if you're already struggling with repayments.

How is a fixed rate personal loan calculated?

We have a handy online personal loan calculator that you can use for free if you want to get a clear idea of what monthly repayments will be like before you officially apply for a fixed rate personal loan. To use it, just enter the loan term beginning at 12 months and adjust accordingly. Also, mention the amount of loan you’re looking to get. Try modifying the pre-filled interest rates to see the costs you'll likely get with higher and lower rates. The total loan and repayment cost suggested by our calculator are only meant to be guides for budgeting.

Can you refinance a fixed rate personal loan?

Refinancing a personal loan can be a smart move in some cases. It is wise to take a lower interest loan if the fixed personal loan interest rates have been reduced since your first loan. You can bring your interest rate down by refinancing, given that your credit score has gone up significantly since the first loan you took out. However, it's important to note that your credit score will possibly go down slightly every time you opt to refinance. It's ultimately up to you to weigh the pros against the cons.

Ozzie Loans is a trusted lender that has helped many borrowers across Australia. If you need more information on our fixed rate personal loan service or have any questions about our services, our support team is here to help. To reach out to us, you may call us during our business hours, send us an email, or talk to us via LiveChat. Easily apply for a fixed rate personal loan with us today by completing our online application form and be part of a growing list of happy and satisfied Ozzie Loans customers.

If you’ve been considering getting a quick loan for some time now but wondering where all we serve, you’ll find us all across Australia, including major cities like Sydney and Brisbane. If you’re still on the fence, we highly recommend checking our personal loan comparison Australia for more information. Apply online today!