Five-year fixed rate personal loans
A locked rate for a generous term. Find out if five-year fixed rate personal loans could be right for you.
Fixed rate personal loans offer you the benefit of the same repayments no matter what happens in the market. Whether you’re looking for a secured loan to buy a car or an unsecured loan to pay for a holiday, a fixed rate loan could be one to consider. This page is a guide on fixed-rate personal loans with five-year terms.
Compare a range of fixed-rate personal loans
How does a five-year fixed rate personal loan work?
When you apply for a fixed rate personal loan, the rate that is stated in your loan contract will be locked in place for the duration of your five-year term. Taking into account any other ongoing fees, this rate will be used to calculate your repayments. Your weekly, fortnightly or monthly repayment will stay the same for the entire five-year term. At the end of the term, your debt will be repaid.
What are the types of fixed-rate personal loans?
A few different types of fixed rate personal loans exist, each suited to different loan purposes and for borrowers in varying situations. Depending on what you need, either of the following might be suitable:
- Secured fixed rate personal loan. If you’re looking to purchase a car, draw on your home equity or even use a high-priced asset as a guarantee, you could consider a secured fixed rate loan.
- Unsecured fixed rate personal loan. Unsecured personal loans may be more suited to you if you aren’t looking to buy a vehicle, your vehicle isn’t eligible to be used as a guarantee, or you‘re looking to pay for a holiday or consolidate debt.
How to compare your fixed rate personal loan options
If you’re wondering which fixed rate loan is right for you, compare your options to find the best fit. Keep the following features in mind:
- Interest rates. These loans all come with fixed interest rates, but compare them with loans that have similar features to see how competitive the rate is.
- Upfront and ongoing fees. Will you be charged an establishment fee? Are there any monthly or annual fees? These can add up over a period of five years, so check before you apply.
- Loan suitability. This is mainly true for secured personal loans, but check that you will be able to finance what you need with the loan. Ensure that the loan amount is sufficient and you will receive the loan when you need it.
- Eligibility. Lenders set the minimum age, income, employment, credit and financial criteria that must be met in order for you to be eligible for the loan. Ensure that you meet these before you submit your application.
Benefits and drawbacks of five-year fixed rate personal loans
- You’ll have a generous repayment term to repay your loan, making the loan suitable for higher amounts
- Your repayments will remain the same during the loan term
- Secured personal loan options are available, so you have the option of locking in a low rate for this period
- Longer repayment terms, while keeping your repayments lower, will result in you paying more interest in total
- Your circumstances may change during the five years, which could make it challenging to meet your repayments
Frequently asked questions