Not everyone wants their repayments left open to the ups and downs of the market. Some borrowers would rather know exactly what they're paying from the very first repayment to the last. Fortunately, opting for a fixed interest rate on your personal loan gives you the peace of mind to budget around your instalments with confidence.
Fixed personal loan interest rates
Rates correct as of August 2026.
What is a fixed rate personal loan?
A fixed rate personal loan is a type of personal loan where your interest rate is locked in from the moment you sign your contract and stays the same for the life of your loan. This means your repayments won't change, regardless of what happens to interest rates in the broader market.
Fixed interest rates tend to be the default option for personal loans, with a wider range of options available to borrowers compared to variable rate loans. As is the case with any other personal loan, you can borrow from $5,000 to $75,000 if you choose an unsecured loan, with borrowing ranges reaching as high as $100,000 if you decide to attach security to your agreement.
How much will my fixed rate personal loan cost?
Just because your interest rate is locked in from the start doesn’t mean there aren’t still a range of variables that’ll impact the cost of your personal loan. Here are the main factors to keep an eye on when comparing your personal loan options:
- Interest rate: the rate you lock in from the outset determines your cost for the entire loan, so it's worth comparing thoroughly before you commit.
- Fees: most lenders charge a one-off establishment fee and an ongoing monthly fee for the life of the loan, though some may exclude one or both from your agreement.
- Loan term: a longer term lowers your monthly repayments but increases the total interest you'll pay over the life of the loan, with the reverse being true of shorter terms.
- Loan amount: the more you borrow, the more interest you'll accrue at the same rate and term.
- Early payout or break fees: unlike a variable rate loan, paying out a fixed rate loan ahead of schedule may come with a fee, so it's worth factoring this in if there's a chance you'll want to clear your debt early.
One of the clearest ways to see just how much your interest bill can change is by looking at loans over different terms:
| Loan amount | Interest rate | Loan term | Monthly repayment | Total interest |
|---|---|---|---|---|
| $20,000 | 8.50% p.a. | 3 years | $631 | $2,729 |
| $20,000 | 8.50% p.a. | 4 years | $493 | $3,662 |
| $20,000 | 8.50% p.a. | 5 years | $410 | $4,620 |
| $20,000 | 8.50% p.a. | 6 years | $356 | $5,601 |
| Calculations are for illustrative purposes only and do not include loan fees. | ||||
As you can see, stretching the same loan out over five years instead of three reduces your monthly outlay by over $200 but increases your interest bill by almost $2,000 overall. Picking the right loan term is about striking the right balance between the two: minimising your interest paid wherever possible but not overburdening yourself with repayments that are too high.
Case study: comparing fixed rate offers
Gavin is looking to consolidate a couple of smaller debts into a single $30,000 personal loan, repaid over five years. Since his rate will be locked in for the life of the loan, he takes the time to get quotes from a handful of lenders before committing to one.
| Loan amount | Loan term | Interest rate | Monthly repayment | Total interest |
|---|---|---|---|---|
| $30,000 | 5 years | 12.00% p.a. | $667 | $10,040 |
| $30,000 | 5 years | 13.50% p.a. | $690 | $11,418 |
| $30,000 | 5 years | 15.00% p.a. | $714 | $12,822 |
| $30,000 | 5 years | 17.00% p.a. | $746 | $14,735 |
| Calculations are for illustrative purposes only and do not include loan fees. | ||||
Gavin notices that the difference between the lowest and highest quote he receives comes to around $80 a month, but almost $4,700 in total interest over the life of the loan. He decides to go with the 12.00% p.a. loan, content in the knowledge that he saved himself a massive amount on interest down the track.
Personal Loan Repayment Calculator
It’s important to have an idea of what your loan might cost you overall before you apply. Fortunately, Savvy’s personal loan calculator is simple to use and lets you know how much your repayments could be.
Your estimated repayments
$98.62
| Total interest paid: | Total amount to pay: |
| $1233.43 | $5,143.99 |
Fixed rate personal loan pros and cons
Pros
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Certainty with your repayments
Since your rate is locked in, your repayments stay the same for the life of your loan, making it easier to budget with confidence.
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Protection against rate rises
If interest rates go up during your loan term, you won't feel any impact, since your rate is fixed regardless of what happens in the broader market.
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Wide range of options available
Fixed rate loans are widely offered across the personal loan market, giving you plenty of choice when comparing lenders.
Cons
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No benefit from rate drops
If interest rates fall during your term, you'll miss out on the savings a variable rate loan could have offered you instead.
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Early payout or break fees may apply
Paying out your loan ahead of schedule, or refinancing to a better deal, can come with a fee that a variable rate loan typically wouldn't charge, though this isn’t always the case.
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May be higher if rates are expected to rise
If you’re borrowing at a time when rates are expected to rise, you may have to pay more to fix your interest.
How to apply for a variable rate personal loan
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Apply online
Complete your initial online application form with details about yourself and the loan you want.
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Submit your documents
Send through all the required docs so we can verify your identity and finances.
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Speak to your broker
Your Savvy broker will call you and talk through your available loan options.
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Have your application prepared
We’ll put together your application and submit it to your lender on your behalf.
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Receive formal approval
You can be approved soon after, so we’ll handle loan settlement and you can receive your funds!
Why apply for a personal loan with Savvy?
Personal loan eligibility and documentation
Eligibility
- You must be at least 18 years of age
- You must be an Australian citizen, permanent resident or eligible visa holder
- You must be employed and earning a consistent income from one or more eligible sources (this can start from as little as $480 per week)
- You must meet your lender’s requirements relating to credit score
Documentation
- You must be at least 18 years of age
- You must be an Australian citizen, permanent resident or eligible visa holder
- You must be employed and earning a consistent income from one or more eligible sources (this can start from as little as $480 per week)
- You must meet your lender’s requirements relating to credit score
Top tips for locking in the lowest available fixed rate personal loan
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Compare rates before you apply
Since your rate won't change once you sign, it's worth comparing multiple lenders upfront rather than settling for the first offer you receive. Your Savvy broker will conduct this process for you.
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Work on your credit score
A stronger credit profile can help you access a lower fixed rate, so continuing to pay your bills on time, cutting back unnecessary credit limits and paying off outstanding debts can all help. Even if your score is good already, every little bit counts.
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Display a strong repayment track record
Showing a lender you've successfully repaid a comparable loan or debt in the past can work in your favour when it comes to the rate you're offered.
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Don’t apply for more than one loan at a time
Every time you apply for a loan, a mark is left on your credit file. The more of these you have, the less likely you are to be approved with a competitive rate.
Fixed or variable personal loan: which is best for me?
Choosing between the two comes down to how much you value certainty versus flexibility. A few questions worth asking yourself:
- How important is repayment certainty? If you'd rather know exactly what you're paying every month for the life of your loan, a fixed rate is likely the better fit. If you're comfortable with some movement in exchange for potential savings, a variable rate could suit you better.
- Do you expect to make extra repayments or pay out your loan early? Variable rate loans generally offer more freedom here, often without any fees attached. Fixed rate loans can come with limits or break fees if you want to pay more than the minimum or clear your loan ahead of schedule.
- Are interest rates going up or down? No one can predict this with certainty, but if you believe rates are more likely to rise, locking in a fixed rate could protect you. If you think they're more likely to fall, a variable rate gives you the chance to benefit directly.
- How would you handle your repayments changing? A variable rate means your repayments aren't guaranteed to stay the same. If that uncertainty would make budgeting difficult for you, a fixed rate offers more stability.
There's no right or wrong answer here: it depends entirely on your circumstances and preferences as a borrower. If you're still unsure, it's worth speaking to a Savvy broker, who can talk you through your options based on your specific situation.
