Secured Personal Loans

Find the ideal secured personal loan for your needs here with Savvy and lock in a lower rate on your financing deal.

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on July 4th, 2024       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Personal Loans Banner

The features and benefits of secured personal loans

Competitive interest rates

You can trim potentially lock in a lower interest rate by adding security to your loan, saving a substantial amount over your repayment term.

Borrow up to $100,000

With security, you can borrow any amount from as little as $15,000 up to $100,000, making them suitable for a wide range of potential uses.

Repay over up to seven years

You’ll get to choose the length of time you take to repay your personal loan, with terms available from as little as 18 months all the way up to seven years.

Flexible security options

You’ll have several different choices when it comes to what you utilise as collateral on your loan, such as your car, van, motorbike, boat or caravan.

Low- and no-fee options

We’re partnered with lenders who can offer you personal loans with no ongoing or establishment fees, saving you hundreds of dollars overall.

Set your repayment schedule

You’ll not only be able to choose your repayment term, but your schedule too. You can make contributions on a monthly, fortnightly or weekly basis, depending on your preference.

Available to self-employed workers

Personal loans aren’t limited to applicants who can prove their income via PAYG payslips: you’re eligible to receive the same loan if you run your own business.

Simple application process

The process from start to finish is a simple one, with easy steps to follow and few documents to supply, and can be turned around in a matter of days.

Types of personal loan

Why compare personal loans through Savvy?

How to apply for a personal loan

Our Process

Compare your options with Savvy

Consider a range of offers from lenders across Australia with Savvy to help you decide on which is the most suitable for you before applying.

Prepare and submit your application

Prepare all the required documentation and fill out your lender’s form via their website to get the wheels in motion on your application.

Get approved and receive your funds

If they’re satisfied with your application, your lender will approve you and send a loan contract to sign, which you can return before receiving your money.

Common secured personal loan queries

Who’s eligible to apply for a secured personal loan?

The eligibility criteria enforced by lenders will vary depending on who you choose to apply with, but the main points you’ll be required to meet are:

  • You must be an Australian citizen or permanent resident (or eligible visa holder)
  • You must be at least 18 years of age
  • You must be employed and earning at least $20,000 annually from stable income sources
  • You mustn’t have a history of defaults or bankruptcy
Am I able to apply with my partner?

Yes – if you can’t afford to take on a loan by yourself or are sharing the funds for a combined purpose, you can apply for a personal loan jointly with your partner. The asset you use can belong to one or both of you. Adding a co-borrower to your loan can be a highly effective way of maximising your borrowing power and lowering your interest rate, as two income streams are considered safer by lenders than one. 

Do secured loans come with fixed or variable interest?

In most cases, these loans come with fixed interest. These are locked in from the start of your loan, protecting you from rate increases and facilitating more accurate budgeting for the future. You may also be able to access variable interest, which is left open to fluctuation and can lead to savings if rates fall during your term.

Am I more likely to be approved for a secured loan?

Most likely, yes – with an asset in tow, lenders are likely to feel more confident in their ability to receive their payment in full by the end of the loan agreement compared to an unsecured finance deal, which comes with fewer safety nets. However, this doesn’t mean approval is guaranteed, as the amount you apply for should still correspond to the value of your asset and what you can afford to comfortably repay.

Which documents will I need for my application?

The documents you'll need to submit as part of your application include:

  • Your last two payslips
  • Your photo ID (such as your driver's licence and/or passport)
  • Proof of address (via a recent utility bill)
  • Record of any liabilities (such as outstanding loan debts)
  • 90 days of bank statements and your employment contract may be requested also 

More about secured personal loans

What are secured personal loans?

A secured personal loan is a type of finance which is available to Australian borrowers. This loan requires applicants to supply a valuable asset to serve as collateral for the agreement, which is known as the loan’s security. Security is put in place to provide lenders with the ability to recoup lost funds in the event the borrower is unable to pay out the entirety of their loan, enabling them to sell the asset to cover potential losses. In most cases, this would be your car, but some lenders will also accept other vehicles such as a motorcycle, caravan or boat, as well as other valuable assets such as jewellery, artwork and savings.

Because lenders require your asset to be valuable enough to be sold for a price which covers them for most, if not all, of their losses, there are requirements put in place to ensure it’s suitable to serve as loan security. The main criteria revolve around age, such as your car being no more than five to ten years old at the time you take out your loan, and condition, such as its repair history.

Aside from this, though, these loans are essentially the same as any other personal loan in the way they work. You can apply online and get approved for a lump sum, which you repay with interest over a set term until your outstanding balance hits $0. They can also generally be used however you like, enabling you to utilise them for any private purpose you may need. In some cases, you may also use the loan funds to purchase the asset you’re using as security for the loan.

What are some of the main benefits of secured personal loans?

There are two significant benefits which stem from secured personal loans. The first of these is that interest rates and fees on these products are lower than other types of personal finance, owing to the safety blanket your collateral provides your lender. This means you could end up saving hundreds of dollars compared to taking out another type of loan with a higher rate and fees.

Secondly, your borrowing power is expanded when you add security to your loan. While the loan size you’re approved for will vary depending on the value of the asset you’ve attached, you can potentially be approved for up to $100,000 (as mentioned above), compared to the lower caps placed on other types of personal finance. This enables you to access more funds to use for larger purposes, such as conducting expansive renovations around your home or consolidating significant ongoing debts into one payment.

How are they different from unsecured personal loans?

Unsecured loans, on the other hand, require no form of collateral as part of their financing agreements. This makes them more accessible to a wider range of borrowers who may not have an asset eligible to be used as collateral, as well as the fact that there are more lenders in the market offering unsecured loans than those who offer secured finance (namely smaller private lenders). Also, because these loans come without any requirement to assess the suitability of security, they can often be processed more quickly and deliver the funds you need in less time.

However, these loans have more limitations due to their lack of asset collateral. The interest rates which are offered on these loans are routinely 1% p.a. or more higher than secured finance, as well as often charging greater fees, which can mean the difference between paying or saving hundreds of dollars, if not more. This is down to the fact that lenders are inherently taking a greater risk in approving these loans, placing their trust in the borrower to fulfil their loan obligations and not having any fallback option for receiving the money they’re owed.

How do I compare secured personal loan offers?

By comparing personal loans with Savvy, you can put yourself in the best position to capitalise on comprehensive comparison information and make an educated call on which loan is best for your needs. Some of the main factors to consider when choosing between secured finance options include:

Interest and fees

As mentioned above, getting the right interest rate on your loan could result in significant savings. For example, on a $35,000 personal loan repaid over five years at 9% p.a., you’d pay almost $8,600 in interest alone. However, by opting for a rate of 7.5% p.a. instead, you can save more than $1,500 throughout your repayments. The same applies to fees, with application ($0 up to $595) and monthly ongoing charges ($0 to $10) potentially setting you back a significant amount across your term.

The most effective way of encompassing both of these figures in your decision-making is to contrast offers based on their comparison rates. This is a percentage which includes both the interest and cost of fees across your loan into one calculation, giving you a more accurate indication of the cost of your loan. This doesn’t include conditional charges such as early or late repayment fees, as they won’t always apply to every loan.

Available loan amounts

Of course, the lender you choose should be able to accommodate the size of loan you’re after. This won’t generally be an issue for most borrowers, but for those looking to get approved for an amount on the higher or lower end of the scale, it’s a relevant consideration. For example, some lenders won’t allow borrowers to access an amount as great as $100,000, while others will impose minimums as high as $15,000. If you find yourself in either position, you should compare your lending options carefully to ensure you can comfortably apply for the sum you need.

Potential loan terms

You’ll also need to make sure you can repay your loan at a pace which suits you. Not all lenders will offer the full range of one to seven years (although seven is more common for these loans), so you should try to make sure wherever possible that your preferred term is offered. If you want to repay your loan over just one year, for instance, you can immediately rule out lenders who enforce a minimum of two to three years.

Repayment flexibility and other key added features

Having the ability to freely repay your loan ahead of schedule without incurring any penalties for doing so. The less time you take to repay your loan, the less interest you’ll pay overall, so it’s important to not compromise on this point. For instance, a $30,000 loan repaid over four years at 7.5% p.a. would cost $4,818 in interest overall but paying an additional $100 each month would save you $679 and shorten your loan term by six months.

It's not just extra repayments which can apply to your loan, though. You may look for an offer which includes a redraw facility, which enables you to withdraw from additional payments made towards your loan principal instead of applying for another loan. Also, loans which enable you to choose between weekly, fortnightly and monthly payment cycles are sought after by borrowers who wish to further tailor their repayments to suit their individual needs.

Helpful personal loan guides

Still looking for the right personal loan?

Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.