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CommBank Personal Loan Review

Looking at CommBank personal loans? Find out all there is to know about them and compare your options with Savvy.

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, updated on October 4th, 2023       

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Commonwealth Bank stands as one of Australia’s four biggest banks and isn’t short on services on offer, with a myriad of banking products available on top of home loans, insurance, business and international offers.

One such product is a personal loan, which you may be drawn towards if you already bank with them, but you should always take more time to consider the vast number of options at your disposal.

That’s why Savvy is here to help. With lending partners around Australia, we break down offers from them and other financiers so you can find out quickly and effectively whether they’re right for you.

*Please note that Savvy does not represent Commonwealth Bank for their personal loan product.

The features and benefits of personal loans with CommBank

Interest rates from 6.99% p.a.

You can secure a rate as low as 6.99% p.a. (7.69% p.a. comparison) on your personal loan, potentially allowing you to save on interest and fees over the life of your loan.

Choose between fixed or variable interest

There’s no need to be stuck with one or the other, as CommBank allows you to choose from personal loan products which allow you to either lock in your rate or keep it open to movement.

Borrow up to $100,000

Depending on the type of loan you choose to apply for, you’ll be able to borrow as little as $4,000 up to a maximum of $100,00, making them suitable for needs big and small.

Fee-free additional payments

You’ll be able to make extra contributions towards your loan debt, with additional payments above the minimum amount cutting down on the interest you’ll pay overall.

Access a redraw facility

In some cases, you can even withdraw from the extra payments you’ve already made to add even more flexibility and save you from applying for another loan.

Choose your loan term up to seven years

You should always be as comfortable as possible when repaying your loan debt, so being able to select your ideal term from one to seven years allows you to do that.

CommBank personal loan pros and cons

PROS

Both secured and unsecured loans

If you own a valuable asset which you want to use as collateral for your personal loan, you’ll be free to do so with a secured finance deal as an option on top of unsecured loans.

Use funds however you like

The beauty of personal loans lies in their flexibility, as they’re designed to be able to be used for just about any purpose, from consolidating outstanding debts to funding your next getaway.

Set your preferred payment schedule

As with most other personal loans, you can customise your repayment schedule to reflect a frequency which best suits you, with monthly, fortnightly or weekly payments available.

CONS

Required to pay ongoing and establishment fees

CommBank charges customers an ongoing fee of $10 throughout their loan term, as well as an establishment fee of $250 upon the commencement of your personal loan.

Capped extra repayments on some loans

On CommBank’s fixed rate personal loans, you’ll only be able to contribute a maximum of $1,000 in extra payments each year of your loan, restricting your ability to save.

Not available to bad credit borrowers

You won’t be able to apply here if you’ve struggled with your credit in the past, as big lenders like CommBank don’t tend to work with borrowers in this position.

More about CommBank personal loans

Which personal loan products does CommBank offer?

You have three main personal loan products to choose from when applying with CommBank. It’s important to know which is the right one for you before applying, as each offer comes with distinct differences. However, above all else, it’s crucial to compare your options with Savvy. We’re partnered with flexible lenders who offer some of the cheapest and best loan deals on the market, so you can put yourself in the best position to select the best one for your needs.

Secured Personal Loan

As the name suggests, this is a loan which requires an asset to be put up as security. This can be used both as a personal loan and a car loan, as your vehicle is required as collateral for this finance deal. Your car will need to be five years old at most and covered by a comprehensive insurance policy, as well as being free from any outstanding finance. Under this loan, you can access the minimum 6.99% p.a. fixed rate if your profile is suitable and borrow from $4,000 to $100,000, accessing up to 120% of your loan’s value.

Fixed Rate Personal Loan

This unsecured personal loan comes with a fixed interest rate, meaning you won’t need to worry about security if your car isn’t eligible. While you’ll still be able to take up to seven years to repay your debt, your borrowing range is limited to $4,000 to $50,000, rather than $100,000. Fixed interest makes budgeting more accurate across your loan term, as you’ll know exactly how much you’ll be setting aside each month into the future. These loans start from interest rates of 11.50% p.a. (12.38% p.a. comparison).

Variable Rate Personal Loan

You’ll also have the choice to leave your unsecured personal loan’s interest rate open to fluctuation with a variable rate. This means that your loan’s interest rate can rise or fall throughout your term every month, potentially enabling you to save but also running the risk of costing you more. This loan is essentially the same as the fixed rate loan, except there aren’t any restrictions on the number of additional repayments you’ll be able to make in a given year. This opens the door further for savings on your finance deal.

How do I apply for a personal loan with CommBank?

The application process is simple when applying for your personal loan. The key steps to follow are:

Gather your documents

It’s important to have all the documents you need at your disposal before you start your application with CommBank. These include:

  • Your two most recent payslips or a tax return or Notice of Assessment from within the last 18 months if you’re self-employed
  • One month of bank statements for CommBank customers and three for non-CommBank customers
  • One of your passport, driver’s licence or proof of age card or two of your birth or citizenship certificate, pension or healthcare card, council rates notice, ATO assessment notice, utility bill or overseas driver’s licence

Apply online

Fill out their online form to tell them about yourself, your finances and the type of loan you’re after and submit it.

Receive an outcome and supply documents

CommBank will be in touch with you within 60 seconds with a conditional outcome and, if approved, will ask you to supply your supporting documentation.

Sign your contract

You’ll also be forwarded a loan agreement to sign confirming the details of the agreement, which you can return and have your funds advanced on approval.

Common personal loan queries

Can I use a secured personal loan for multiple purposes with CommBank?

Yes – even with your car as security, you can use the loan for whatever private purposes you like. However, if you’re using this secured to purchase a car, with said car serving as collateral for your loan, you can only use your funds for that purpose.

How does personal loan refinancing work?

Refinancing your personal loan can help you save on your finance deal by accessing a loan with better rates, fees or features. You essentially apply for a new loan for the express purpose of paying out your remaining loan debt and take on the new repayments for the rest of the scheduled term.

How can I make sure my loan is affordable for me?

Locking in an affordable finance deal is crucial when seeking out a loan. One of the key ways to find out which loan sizes and terms are manageable for you is by using our personal loan calculator to crunch the numbers. You can also use our borrowing power calculator to provide an estimate of what you might be approved for based on your profile.

Will I be able to apply in-branch instead?

Yes – CommBank allows applications to be made in your local branch or over the phone in addition to the online process, although the latter is far and away the most common and typically the most convenient for people.

How long does it take for the funds to hit my account?

This may vary depending on your application. There are many factors which can impact the speed a personal loan application takes, such as the applicant’s income, credit score, loan amount, loan term, employment history and more. In most cases, lenders can approve and fund your application within 24 hours, in some cases on the same day you apply.

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