The term “personal loans” covers a broad spectrum of products. Essentially, if it’s for something that you’re using in your private life and not for business purposes (at least not a majority of the time), it can be bought with a personal loan from vehicles, to renovations even through to holidays and weddings Aussies are borrowing money for them.
Because they’re so common across the country, there are plenty of valuable insights that can be drawn from digging into the data. Find out how much people are borrowing, how personal loans are being used and more.
How many personal loans are there in Australia?
While it’s hard to answer exactly how many personal loans are currently being repaid in Australia, what is clear is that the number is rising. The Australian Bureau of Statistics (ABS) revealed in its lending indicators for the September Quarter of 2025 that the value of new personal fixed term loan commitments had reached an all-time high of $9.307 billion, eclipsing the $9.052 billion borrowed in the previous quarter. The value of new loans for road vehicles also hit an all-time high of $4.919 billion last quarter.
According to the latest Quarterly Consumer Credit Insights Report from Equifax, the demand for unsecured personal loans went up by 11.6% in the September Quarter of 2025 compared to the same period last year. This came amid a surge in overall unsecured credit demand of 18% more than last year’s September Quarter.
The overall number of accounts has grown by 2.4% year-on-year, per Equifax’s latest Report. However, the value of delinquent personal loans 90 or more days past due (DPD) has increased significantly, rising by 13% year-on-year. This follows an observation made by APRA in its Monthly Authorised Deposit-taking Institutions Statistics (MADIS) for June, where it cited a “sharp jump” in the number of personal loans in Australia.
The Consumer Price Index (CPI) has also recorded significant change in the years since the onset of the COVID-19 pandemic, having gone from an annual change of -0.3% in the June Quarter of 2020 to a peak of 7.8% in the December Quarter of 2022. Although annual CPI change reached a low of 1.9% in June 2025, it has crept up quickly in the months since, with October reaching 3.8%. This, in turn, leads to personal loans in greater volumes and for larger sums, as we’re seeing at the moment.
It’s clear that cost of living pressures have played a major role in driving up the number of personal loan applications. Between November 2020 and January 2024, the number of people who reported that it was either “difficult” or “very difficult” to get by on their income rose from 17.1% to 34.6%, according to the National Mental Health Commission’s National Report Card for 2024.
What is the average personal loan interest rate?
According to the RBA, the average fixed, variable and overall interest rates for outstanding personal loans are:
The first thing likely to draw your eye about the average rates on existing personal loans up to November 2025 is the fact that variable rates are going down and fixed rates have only just begun to level out. The former is easy to explain: as the RBA cuts the national cash rate, lenders have followed suit with their variable loan products. Fixed rates, on the other hand, are still high because they haven’t been impacted by these rate cuts yet. You can see how the cuts impacted new loans in the first half of 2025 in the second table.
However, the downward trajectory of lending rates started to reverse once again in the second half of 2025, as lenders began to change tack in the wake of news that inflation had increased beyond the RBA's expectations. Rates are expected to be raised as soon as February as a result, so you can expect the new loan graph to continue in that direction throughout the early stages of 2026.
What do Australians take out personal loans for?
Personal loans are flexible by design. They’re able to be used for a variety of purposes, from consolidating debt to funding your next holiday or even funding the purchase of your next car (we’ve broken down car loan stats in a separate page).
The average personal loan amount approved through Savvy during 2025 was $27,238. You can see how this breaks down by loan type in the following graph:
However, the following graph shows the average amount requested on personal loan applications for each general category through Savvy:
As you can see, covering car expenses was the most popular reason for requesting a personal loan through Savvy over this period at more than 37% of all approved loans. This covers anything from repairs to maintenance, modifications and other on-road costs. Loans for recreational vehicles, such as motorbikes, jet skis and camper vans, were the second-most popular (18.0%), ahead of bill or debt coverage like debt consolidation, rent, bond and more.
However, for the purposes of this page, we’re going to explore the four most popular personal loan assets: caravan loans, motorbike loans, boat loans and jet ski loans.
Caravan loan statistics
The average caravan loan taken out through Savvy in 2025 was $52,925 over 6 years at an interest rate of 10.81% p.a. However, you can dig deeper into the numbers to see how it all comes out in the wash for new and used models.
Caravan loans: new vs used
Over two thirds of all caravans financed through Savvy in 2025 were used, with the average model year being 2020 and the median model year being 2023.
There are clear reasons for this, as the average new caravan loan approved through Savvy across the aforementioned period was over $20,000 more than the average used caravan loan.
These numbers come against the backdrop of a boom in caravan demand since the COVID-19 pandemic. According to Tourism Research Australia, caravan registrations in Australia reached an all-time high of 901,000 as of January 2024, which is 27% higher than in 2019 (pre-COVID-19). There were 15.2 million caravan and camping trips in 2024, which resulted in an overall spend of $14 billion.
Average caravan loan repayment
The average repayment on a caravan loan is based on three main factors: the purchase price of the caravan (or, more specifically, the size of the loan), the length of the loan term and the interest rate. You can see the difference between the average new and used model here:
| Caravan | Loan amount | Loan term | Interest rate | Monthly repayment | Interest payable |
|---|---|---|---|---|---|
| New caravan | $67,172 | 6 years | 8.65% p.a. | $1,199 | $19,169 |
| Used caravan | $46,162 | 6 years | 11.93% p.a. | $901 | $18,695 |
| Loan amounts and interest rates based on average loan amount approved for both new and used caravans through Savvy in 2025. | |||||
Motorbike loan statistics
In 2025, the average motorbike loan approved through a Savvy broker was $17,852 over 4.6 years with an interest rate of 13.17% p.a.
Motorbike loans: new vs used
Unlike the growth seen in the caravanning industry, motorbike sales have remained relatively consistent, albeit trailing last year's figures slightly.
The Federal Chamber of Automotive Industries (FCAI) reported 92,967 new motorbike registrations across 2025, which is just over 1,250 units (-1.3%) behind the numbers recorded throughout 2024. This is despite 2025's sales being eight units ahead of 2024 as of the end of June.
Off-road bikes were the most popular type of motorcycle sold last year and were remarkably consistent, surpassing 2024's total by 12 units. Road bikes were next despite experiencing a dip of 3.6%, ahead of off-highway vehicles (OHVs), which also fell away by 1.4%. Scooters were the only segment that saw growth, experiencing a 3.8% bump.
Average motorbike loan repayment
With the average loan amount, loan term and interest rate in mind, the average monthly repayment and overall interest paid for both new and used models are as follows:
| Motorbike | Loan amount | Loan term | Interest rate | Monthly repayment | Interest payable |
|---|---|---|---|---|---|
| New motorbike | $19,322 | 5 years | 11.69% p.a. | $427 | $6,285 |
| Used motorbike | $17,743 | 5 years | 14.11% p.a. | $414 | $7,089 |
| Loan amounts and interest rates based on average loan amount approved for both new and used motorbikes through Savvy in the 2024-25 financial year. | |||||
The above table is a good example of the difference interest rates can make across your loan term. Although the used model is just under $1,600 cheaper than the new model, its increased rate means that you’re paying around $800 in interest throughout your term compared to the more expensive new motorcycle.
Most popular motorbike makes: 2025
Yamaha proved to be the most popular motorbike make financed through Savvy in 2025, as was also the case across Australia, according to the FCAI.
However, Harley-Davidson finished a close second, despite not featuring in the top three new best-sellers per the FCAI. This is in large part due to the strength and popularity of used Harleys: 81.3% of their models financed through Savvy were used.
This is greater than the proportion of used models from other brands like Yamaha (68.8%), CFMOTO (15.6%), Honda (66.7%) and Kawasaki (51.5%).
Boat loan statistics
The average size of a boat loan approved and settled through Savvy in 2025 was $77,751 with an interest rate of 13.44% p.a. The average age of boats purchased was 14 years, while the average loan term was 5.4 years.
At the top end, boats are by far the most expensive leisure vehicle you can buy. They can range from as little as $10,000 or less for a small tinny or dinghy to well over $1 million for yachts and other luxury cruisers.
As a result of this, there’s a far greater variance in the sizes of loans approved.
Across the 2025 calendar year, the smallest boat loan approved through Savvy was just under $9,800, while the largest was well over $950,000.
Average boat loan repayment
| Boat | Loan amount | Loan term | Interest rate | Monthly repayment | Interest payable |
|---|---|---|---|---|---|
| All boats | $77,751 | 5 years | 13.44% p.a. | $1,787 | $29,447 |
| Loan amounts and interest rates based on average boat loan amount approved through Savvy in 2025. | |||||
Most popular boat makes: 2025
Quintrex is the leading boat brand in Australia in terms of sales, which is reflected in its clear popularity among Savvy customers.
One in five boats financed through Savvy was a Quintrex in 2025, well ahead of Stacer, Stessco, Mastercraft and all other makes.
Jet ski loan statistics
The average jet ski loan taken out through Savvy in 2025 was $23,776 over a five-year term at 13.93%, with the average model age being three years.
Jet ski loans: new vs used
Of the four leisure assets discussed, jet skis are the only type that are predominantly purchased new.
After all, jet skis tend to have a shorter lifespan at around ten years of use (based on about 30 hours of usage per year).
However, interestingly, over three quarters of jet skis financed through Savvy in 2025 were used, bucking the recent trend seen among all sales.
Average boat loan repayment
| Boat | Loan amount | Loan term | Interest rate | Monthly repayment | Interest payable |
|---|---|---|---|---|---|
| New jet ski | $25,038 | 5 years | 13.82% p.a. | $580 | $9,777 |
| Used jet ski | $23,415 | 5 years | 13.96% p.a. | $544 | $9,245 |
| Loan amounts and interest rates based on average loan amount approved for both new and used jet skis through Savvy in 2025. | |||||
Most popular jet ski makes: 2025
Yamaha was the clear winner for most popular jet ski financed through Savvy over the last 12 months, accounting for 55.6% of all models. However, Sea-Doo remains far and away the most popular jet ski Australia-wide, according to sales data obtained by Watercraft Zone. It held a market share of 75% or more every year between 2021 and 2024.
What other types of personal debts do Australians carry?
Credit card debt
One of the most common forms of debt in Australia comes from credit cards. As of November 2025, the Reserve Bank of Australia (RBA) reported that the total credit and charge card balances accruing interest from larger Australian card issuers were $22.2 billion, which rose sharply from the $20.8 billion recorded in October.
It’s important to note, though, that this only makes up 47.6% of the total credit card balance in Australia, which sits at $43.6 billion as of September 2025. That means that 52.4% (or $22.8 billion) of all credit card debt isn’t accruing interest by virtue of being paid off within an interest-free period.
It’s important to note that this only makes up just under 50% of the total credit card balance in Australia (49.8%), which sits at $44.6 billion as of November 2025. That means that approximately $22.3 billion of all credit card debt isn’t accruing interest by virtue of being paid off within an interest-free period. We could soon see interest-accruing debt eclipse 50%, though, as it sat at 47.7% as recently as October.
With just under 12.30 million credit cards currently active in Australia, according to Finder, this would put the average debt accruing interest at $1,806, compared to the overall average of $3,624.
Balances accruing interest plummeted from a high of $32.7 billion in February 2018 to $18.1 billion in May 2022. Although it was already on the decline, the sharp drop can be attributed in large part to the slashing of rates during the COVID-19 pandemic.
However, as rates started to increase again in May 2022, we’ve seen a gradual rise in card balances garnering interest. The same trend can be seen in the value of personal card purchases, which fell through the floor to a ten-year low of $15.7 billion in April 2020 as the pandemic set in but has since risen to an all-time high of $29.9 billion in November 2025.
This reflects a number of key factors: increased rates and heightened cost-of-living pressures are undoubtedly present, but people are simply not using cash as much anymore. The RBA revealed in 2023 that the number of cash payments fell from 32% of all transactions in 2019 to 16% in 2022. Although it was already declining, the drop-off in cash use has also partly been caused by the change in behaviours resulting from the COVID-19 pandemic.
Buy now, pay later (BNPL) services have also grown in popularity and eaten into credit cards’ slice of the market pie. A 2022 RBA survey found that BNPL users were less likely to own a credit card, with over 40% of respondents aged between 18 and 39 years old having used a BNPL service in the previous 12 months.
HECS-HELP debt
Another common debt that hangs over the heads of millions of Australians is HELP or HECS-HELP study loan debt. According to the Australian Government, the average HELP debt was $27,600 as of November 2024 across close to three million people. You can see the breakdown of the different HELP balances and how many people they impact here:
However, with the Government’s 2025 election promise to cut student debt by 20% now having passed as a bill through parliament, more than $16 billion in outstanding HELP and other student debt is currently being wiped out. The projected savings for each debt range are:
| Range of outstanding HELP debt | Range in debt reduction |
|---|---|
| $0–$10,000 | $0–$2,000 |
| $10,000–$20,000 | $2,000–$4,000 |
| $20,000–$30,000 | $4,000–$6,000 |
| $30,000–$40,000 | $6,000–$8,000 |
| $40,000–$50,000 | $8,000–$10,000 |
| $50,000–$60,000 | $10,000–$12,000 |
| $60,000+ | $12,000+ |
| Source: Albanese Labor Government to cut a further 20 per cent off all student loans debt, Ministers of the Education Portfolio | |
On top of that, the additional change that tied indexation to the lower of CPI or Wage Price Index (WPI) are set to save debt holders a further $3 billion.
Small loan debt
Small loans are those for $5,000 or less, which include payday loans. These loans are structured differently compared to standard personal loans, with amounts $2,000 or less based on fixed, capped fees and those above $2,000 having a capped fee and interest.
The following chart shows the most common purposes for these funds for loans requested through Savvy in 2025:
