Personal loan types compared
Fixed, variable, secured, unsecured, small amount, medium amount, buy now pay later and line-of-credit options side by side.
This table compares types of consumer credit commonly used in Australia for personal spending, not individual lenders. Each row shows how the product works, when it can suit, and what to watch for. Rate and fee rules referred to are those in the National Credit Code and the National Consumer Credit Protection Act 2009 as at October 2026; actual pricing varies by lender and borrower. Use it alongside the overview guide and the repayment calculator.
Select a column header to sort.
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Fixed-rate unsecured personal loan | Set interest rate and repayment for the whole term, typically 1 to 7 years, no asset as security | Budget certainty for a known expense | Early repayment or break fees; extra repayments may be limited |
| Variable-rate unsecured personal loan | Rate can move during the term; repayments change with it | Paying off early or making extra repayments | Repayments can rise; budget for a higher rate |
| Secured personal or car loan | Loan secured over the car or another asset, usually at a lower rate than unsecured | Buying a newer vehicle with a lower rate | The asset can be repossessed after default; age limits on the security |
| Line of credit or overdraft | Approved limit you draw and repay as needed; interest on the drawn balance | Irregular costs and short-term buffers | No fixed end date; easy to stay in debt; ongoing fees |
| Credit card | Revolving limit with an interest-free period on purchases if paid in full | Short-term purchases repaid within the interest-free period | High purchase and cash advance rates; minimum repayments stretch debt out |
| Small amount credit contract (payday loan) | Up to $2,000 over 16 days to 1 year; fees capped at 20% establishment plus 4% a month | Rarely the best option; consider Centrelink advances or no-interest loans first | Very high effective cost; default fees capped at twice the loan amount |
| Medium amount credit contract | $2,001 to $5,000 over 16 days to 2 years; up to $400 establishment fee plus a 48% annual cost rate cap | Small purchases when cheaper credit is refused | Cost far above a standard personal loan; check the lender's licence |
| Buy now pay later | Purchase split into instalments; regulated credit since 10 June 2025, many as low cost credit contracts | Small purchases paid on time | Late fees, multiple accounts and repayments reported on credit files |
| No Interest Loan Scheme (NILS) | Community-based loans with no interest or fees for eligible people on lower incomes | Essential goods and services | Eligibility rules and limits; apply through a community provider |
Rates and fees vary by lender and change often; figures in this table are rules or caps, not quotes. A comparison rate in an advertisement applies only to the benchmark amount and term shown. Check rules and products with ASIC's Moneysmart, the Federal Register of Legislation and the lender's key facts sheet and credit contract. For free advice call the National Debt Helpline on 1800 007 007. This is general information, not financial advice.