Fixed Rate Personal Loans Personal Loans

Related Categories: Personal Loans, Variable Rate Personal Loans, Secured Personal Loans, Unsecured Personal Loans, Student Loans

Fixed Rate Personal Loans

When it comes to getting personal loans, Australians have a choice when it comes to the type of interest rates they want to pay. The interest rates are generally what lenders charge for the length of the loan, so the longer the time set for a personal loan, the more payments on the interest rate will have to be made.

In most cases, borrowers will have to pay what is known as a fixed interest rate on the personal loans that they receive from lenders. To understand what a fixed rate is and the benefits or potential pitfalls that may apply is important when making the most informed choice about which type of personal loan to receive.

What are Fixed Personal Loans?

There are two types of interest rates that can be applied to a personal loan, variable and fixed. A variable interest means that the interest rate will change according to current market conditions. A fixed rate however will stay with the loan for its entire lifetime no matter what happens in the marketplace.

For example, if you take out a fixed personal loan with an interest rate that is set at 10% for example, then it will not matter how the market changes in terms of the new interest rates that may become the norm. Whether they rise or fall, you will continue to pay the same interest rate for your loan regardless of the current lending rate.

Advantages and Disadvantages of Fixed Rate Home Loans

Of course, there are times in which you will want to have a fixed personal loan as it will be advantageous to your particular needs.

Arguably the best reason to take out such a loan is its predictability. Since the interest rate will never change, you can better budget a fixed personal loan than you can one with a variable interest rate. This works very well for individuals or families on a tight budget who cannot afford to have the interest levels rise by any appreciable amount.

A fixed personal loan also counters the effects of an uncertain market where interest rates may rise or fall with little in the way of warning. During uncertain economic times, a fixed personal loan is one that offers a considerable benefit that you can trust. A volatile market means that interest rates can rise or fall quickly and having a fixed personal loan may be the best answer.

The biggest disadvantage of a fixed personal loan is that if interest rates should drop you will wind up paying more than a variable personal loan. In fact, studies have shown that more people who take out variable personal loans will wind up paying less than those who received a fixed personal loan.

Of course, there is a big difference between being more likely to pay less money and actually having it work out that way. For Australians who live on a tight budget, a fixed personal loan may be the best option thanks to its predictable nature and hedge against uncertain times.

Search within these results:

Results

MyState Bank

144 Collins Street
Hobart, Tasmania 7000
Australia

MyState Bank Limited is an Australian financial institution with its headquarters in Hobart, Tasmania and predominately operates through the state of

National Australia Bank

800 Bourke Street
Docklands, Victoria 3008
Australia

NAB - National Australia Bank head office featuired in the Australian Financial Services Directory

P&N Bank

130 Stirling Street
Level 7
Perth, Western Australia 6000
Australia

P&N Bank provides financial products and services, including transaction accounts, saving accounts, home and personal loans, financial planning,

Rural Bank

77 Grenfell Street
Shop 2
Adelaide, South Australia 5000
Australia

The wide variety of financial products and services offered by Rural bank, includes Visa debit cards, cheque accounts, direct debit and credit

G&C Mutual Bank

201 Elizabeth Street
Level 25
Sydney, New South Wales 2000
Australia

G&C Mutual Bank (SGE Mutual Limited) offers Home Loans, Personal Loans, Credit Cards, Insurance and more peronal finance products.

Victoria Teachers Mutual Bank

117 Camberwell Road
Hawthorn East, Victoria 3123
Australia

Victoria Teachers Mutual Bank offer wide range of banking products, including transaction and saving accounts, term deposits, credit cards, personal

Arab Bank Australia Limited

Level 7, 20 Bridge Street
Exchange Centre
Sydney, New South Wales 2000
Australia

Arab Bank Australia offer transaction accounts, investment accounts, cash management accounts, online savings accounts, personal loans, home loans,

Citigroup Pty Limited

2 Park Street
Citigroup Centre
Sydney, New South Wales 2000
Australia

Global Consumer Group – This group consist of Citibank and Diners Club brands combined offering consumer banking services, including transaction and

Rabobank Australia Limited

201 Sussex Street
Darling Park Tower 3 Level 13
Sydney, New South Wales 2000
Australia

Rabobank Australia is Australia’s largest rural lenders and plays an important role in corporate financial services to the food and agribusiness

Agricultural Bank of China Limited

2 Chifley Square
Sydney, New South Wales 2000
Australia

Agricultural Bank of China Sydney Branch got its license to carry out banking business from the Australian Prudential Regulation Authority on 25th

Featured Listings

  • Credit Union SA Ltd

    400 King William Street
    Adelaide, South Australia 5000
    Australia

    Credit Union SA - Find loans, credit cards, insurance

  • McKinley Plowman

    Level 2, 5 Davidson Terrace
    Joondalup, Western Australia 6027
    Australia

    McKinley Plowman is a leading firm of accountants in Perth.

  • Westpac Bank

    150 Collins St
    Melbourne, Victoria 3000
    Australia

    Westpac transaction accounts, debit, credit and travel cards

  • Barry Lynam Home Loans and Financial Services

    22 Old Shoal Point Rd
    Bucasia, Queensland 4750
    Australia

    Barry Lynam Home Loans and Financial Services offers a wide

  • Amani Finance

    1 Hobsons Gate
    Suite 10, Level 1
    Currambine, Western Australia 6028
    Australia

    Amani Finance is one of the leading mortgage brokers in