Secured Personal Loans

Lock in a lower rate by guaranteeing your loan with an asset.

If you are looking for a personal loan to help you take the next step – towards a holiday, a new car, a used car or another large purchase – you might want to consider the benefits of a secured loan. While you might associate these loans with the purchase of a new vehicle, they are about so much more than just cars.

Admiral Finance Personal Loans

Admiral Finance Personal Loans

From

13.95 % p.a.

rate

  • Borrow from $1,000
  • Flexible payment options
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100% confidential application

Admiral Finance Personal Loans

Apply today to get approved within 60 minutes for up to $50,000.

  • Max. loan amount: $50,000
  • Loan term: Up to 60 months
  • Turnaround time: 60 minutes response during business hours. Funds released within 24 hours upon approval
  • Fees: $12 Monthly Fee, $125-595 Application Fee depending on loan size
  • Quick 5-minute application
  • Flexible options catered to all financial situations
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Compare secured personal loans

Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Turnaround Time Monthly Service Fee Application Fee
13.95% to 23.95%
$1,000
$50,000
Up to 60 months
60 minutes response during business hours. Funds released within 24 hours upon approval
$12
$125-595 depending on loan size
Borrow $1,000 to $50,000 and apply online in 5 minutes.
14.95% to 23.95%
$1,000
$20,000
Up to 60 months
60 min. response, money available when docs signed (usually same day)
$12
$125-595 depending on loan size
Personal loans up to $20,000 and approved within 60 minutes regardless of your credit score.

Compare up to 4 providers

* The offers compared on this page are chosen from a range of products finder.com/nz has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms “Best” and “Top” are not product ratings and are subject to our disclaimer. The star ratings indicated on this page are from real finder.com/nz users based on their feedback about the quality of this page. It is not representative of any product’s star ratings and should not be taken as a recommendation of any form of credit. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

What is a secured personal loan?

A secured personal loan is a line of credit that is guaranteed against an asset you own or one you buy with the loan. You can usually apply for an amount up to $100,000 for terms up to seven years, although the line of credit can be ongoing. The security can come in the form of a number of different items, including a car; equity in your home; high-priced items such as jewellery; or monetary accounts such as term deposits.

Is a secured loan the right option for you?

It is important to determine whether any type of financial product is right for you before you apply. When it comes to secured personal loans, here are some points to keep in mind:

  • You can manage your repayments. If you find yourself unable to repay your secured loan the lender is able to repossess the asset you offered as a guarantee to cover its losses.
  • You have an asset to guarantee or are looking to buy one. Lenders will require you to either be looking to buy an asset with your loan (such as a car or home renovations) or you already have an asset that meets its criteria.
  • You meet the requirements set by the lender. Lenders will have requirements for the guaranteed asset, such as its age or value. For example, if you are using a vehicle as security, it may need to be under a certain age; or if you are using a term deposit you may need to have a certain amount in the account.

The pros and cons of secured personal loans

As with any type of personal loan, there are benefits and drawbacks to consider.

  • Lower rate. These loans are less of a risk for the lender and so come with lower interest rates.
  • Flexible. Unlike car loans, where you have to purchase the vehicle you are securing to the loan, you can generally purchase whatever you need to with a secured personal loan as long as the amount doesn’t exceed your secured asset’s value.
  • Can help you get approved. Offering an asset to secure a personal loan can help you be approved for loans you may previously have been refused. This is because the loan is deemed less risky for a lender to take on when there is an asset attached to it.
  • Risk to your asset. When you take out a secured loan you are “guaranteeing” your loan with it. While this gives you a lower rate, it also means you can lose the asset if you default on the loan.
  • Loan amount is tied to your asset’s value. When you attach your asset to a secured loan it needs to be valued. This value will then be used to determine the loan amount you are offered by the amount.

What assets can you secure to a personal loan?

There is a range of different secured personal loans available, but you can find lenders who let you use the following assets as security for a loan:

  • New car. If you are buying a new car or you have a car that is less than two years old, you can generally use it as a guarantee for a secured loan. Secured motorbike and caravan loans are also available.
  • Used car. Lenders may let you purchase a used car with a secured loan. Other vehicles such as motorbikes or caravans may also be allowed. The vehicle will generally need to be less than seven years old, although some lenders will accept cars up to 10 years old. Cars may need to be of a certain condition.
  • Equity in your home. If you own a mortgaged property, you can draw against any equity you have in the property to finance a purchase. Common uses for home equity loans are home renovations. You can find out if a home equity loan is right for you.
  • High-cost assets. Some lenders are more flexible with the assets they let you use. If you own expensive jewellery, fine art, precious metals, prestige cars or even certain antiques, you can secure it against your loan.
  • Term deposits. This is a more common type of loan available from some banks and credit unions. How much you have available in your term deposit is how much you are able to borrow with that same institution. The amount of your term deposit works as the security in case you default on the loan.

The secured personal loan options that are available

You have a few options when it comes to secured personal loans:

  • Car loans. These secured loans can be for new or used cars. You can find car loans from most banks and credit unions, as well as dealerships and standalone car loan lenders.
  • Home equity loans. If you are looking to renovate; invest in property; go on a holiday or buy a new car, you can consider a home equity loan. Also called a line of credit, as it can be drawn on continually based on the equity held in your property, this is a flexible way to access funds.
  • Term deposit secured loans. This is a loan offered by banks and credit unions to customers who hold term deposits with them. You are able to borrow as much as you hold in your term deposit, with the term deposit acting as the security.
  • Personal asset secured loans. High-priced assets such as boats, motorbikes and jewellery are accepted by some lenders as a guarantee. Your item or collection of items is valued and then used as security, allowing you to take out the loan you need. You generally won’t find these loans at major banks.

How can you compare secured personal loans?

  • Loan amounts. Find out what loan amounts the lender is offering and if it matches your loan purpose.
  • Loan terms. Generally, loans are available for terms of between six months and seven years. Loan terms may only extend up to five years for fixed rate loans or peer-to-peer loans, so make sure you find a loan with terms that meet your needs.
  • Assets you can secure to the loan. Lenders have different requirements when it comes to secured loans. You may not be able to secure the asset you are planning to, so check this before you apply.
  • Fees. Check upfront fees such as application or establishment fees as well as ongoing fees such as annual or monthly fees. These will add to your costs for the loan.
  • Interest rate. How competitive is the interest rate? Compare the rate to other lenders and make sure to check the comparison rate which will give you a better idea of the true cost of the loan.
  • Repayment flexibility. Are you able to repay the loan early without penalty? Can you make additional repayments without being charged? Check this before you apply.

Is there anything to consider before applying?

Before applying for any type of secured loan, it is important to establish whether you can afford the repayments. If you default on the loan, the asset you have used as the guarantee can be taken by the lender and sold to cover the loss.

Compare lenders to find the most competitive options in terms of terms, rates and fees, as this will help find the right option for your budget and needs. Make sure you have done a proper search before submitting your application.

Have more questions about secured personal loans?

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