Key stats: 2025-26 financial year
- Average personal loan size: $27,701
- Average personal loan interest rate: 14.71% p.a.
- Average personal loan repayment: $655 per month
- Value of new personal loans in Australia: $9.807 billion (Q1 2026)
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, holidays and even weddings, it’s worth taking the time to consider how much Aussies are borrowing and what they’re using it for.
How many personal loans are there in Australia?
- The value of new personal fixed term loan commitments reached an all-time high of $9.807 billion in Q1 2026
- Loans nominated as “other” (such as for travel and holidays, household goods and personal investment) eclipsed those for road vehicles in Q4 2025 and widened the gap in Q1 2026
While it’s hard to answer exactly how many personal loans are currently being repaid in Australia, what’s clear is that the amount people are borrowing is rising.
The value of new personal fixed term loan commitments reached an all-time high of $9.807 billion in the March quarter of 2026, according to the Australian Bureau of Statistics (ABS). That eclipses the $9.496 billion borrowed in the previous quarter and is the 12th quarter in a row that the record has been broken, dating back to the June quarter of 2023.
Equifax also reported a rise in unsecured credit demand across the quarter, with personal loan applications increasing by 7.9% compared to the March quarter of 2025.
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 repayment?
- Personal loan applicants approved through Savvy borrowed an average of $27,701 in the 2025-26 financial year
- The average loan term was five years and the average interest rate was 14.71% p.a.
- The average monthly loan repayment on these terms was $655
- SA ($29,710) and ACT ($29,602) residents borrowed the most on average
| Personal loan | Loan amount | Loan term | Interest rate | Monthly repayment | Interest payable |
|---|---|---|---|---|---|
| All personal loans | $27,701 | 5 years | 14.71% p.a. | $655 | $11,587 |
| Bad credit personal loans | $25,065 | 5 years | 18.34% p.a. | $641 | $13,403 |
| Interest rates based on average rate available for each profile type through Savvy in the 2025-26 financial year. These aren’t necessarily reflective of the rates you’ll receive on your personal loan. Calculations are for illustrative purposes only and don’t include loan fees. | |||||
Throughout the 2025-26 financial year, the average borrower who was approved for a personal loan through Savvy took out a five-year, $27,701 loan at 14.71% p.a. Of course, that figure captures a vast range of loans, with amounts ranging from $5,000 or less to as much as $100,000 or more.
For borrowers with bad credit, the average loan amount remained similar, but interest rates were notably higher, as is consistent with lender assessments of those with credit issues.
Average personal loan interest rates: 2026
- The average rate for outstanding personal loans in May 2026 is 8.83% p.a., which is nearing its peak (8.88% p.a. in January 2025) over the last seven years
- The average rate offered on new personal loans is 9.24% p.a.
- The average variable rate on an outstanding personal loan has reached its highest point in over a year, rising to 7.69% p.a. in May 2026 after starting at 7.10% p.a. in January
Both new and existing borrowers have been hit by the RBA’s three rate hikes between February and May of this year, with the average rate for each going up by 0.18% p.a. and 0.21% p.a., respectively, over that period. Existing variable rate personal loans have been smashed the hardest, having jumped from 7.10% p.a. in January to 7.69% p.a. in May.
What do Australians take out personal loans for?
- Bills/debt coverage was the most popular personal loan purpose through Savvy in 2025-26 at 31.9% of all loans, just ahead of car expenses (29.9%)
- Work/business expenses was the purpose that attracted the highest average loan amount ($35,546), ahead of home improvement expenses ($29,225) and bill/debt coverage ($28,054)
There are two clear standouts when it comes to how Aussies are using their personal loans: covering bills and debts and paying for car-related costs. Those two loan purposes accounted for close to two thirds (61.8%) of all of Savvy’s personal loans approved across the 2025-26 financial year.
The purchase of recreational vehicles, such as boats, caravans and motorbikes, remained popular (16.5%), while home improvement expenses (7.3%) was the only other nominated reason for borrowing above 5%.
Although “Other” was the reason that attracted the highest average loan amount, that can be put down to borrowers combining multiple expenses into one over a smaller market share (4.3%). Beyond that, those taking out personal loans on behalf of their business borrowed the most on average ($35,546).
Leisure loan statistics
Another category of personal loan is secured finance for leisure assets. We’ve broken down all the data for caravans, motorbikes, boats and motorbikes for the last financial year:
What other types of personal debts do Australians carry?
Credit card debt
- As of May 2026, the number of credit card accounts in Australia sat at 12,167,785
- The total value of credit and charge card balances reached $44.24 billion in May, behind only November 2025 ($44.60 billion) for a single month’s total since March 2020
- 48.7% of all credit card balances are accruing interest
One of the most common forms of debt in Australia comes from credit cards. As of May 2026, the Reserve Bank of Australia (RBA) reported that the total credit and charge card balances accruing interest from larger Australian card issuers were $21.53 billion, which represents a decrease from the peak of $22.12 billion in November but still up sharply from the $19.77 billion recorded in July.
It’s important to note, though, that this only makes up 48.7% of the total credit card balance in Australia, which sits at $43.54 billion as of January 2026. That means that the other 51.3% (or $22.71 billion) of all credit card debt isn’t accruing interest by virtue of being paid off within an interest-free period or being on an interest-free transfer card.
With just under 12.17 million credit cards currently active in Australia, according to Finder, this would put the average debt accruing interest at $1,770, compared to the overall average of $3,636.
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 has been 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.
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 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.
- Average personal loan amount: $25,389
- Average interest rate: 15.51% p.a.
- Average loan payment: $611
- Median personal loan amount: $21,515
- Median interest rate:14.45% p.a.
- Average bad credit personal loan amount: $21,097
- Average bad credit interest rate: 18.88% p.a.
- Most common personal loan purposes:
- Car expenses
- Recreational vehicle expenses
- Bill/debt coverage
- Work/business expenses
- Other
- Largest average loan amount by purpose:
- Other ($42,431)
- Bill/debt coverage ($34,806)
- Work/business expenses ($34,441)
- Home improvement expenses ($25,446)
- Car expenses ($24,422)
- Average caravan loan amount: $52,207
- Average caravan loan interest rate: 11.72% p.a.
- Average caravan loan payment: $1,013 (six-year term)
- Median caravan loan amount: $49,794
- Median caravan interest rate: 10.99% p.a.
- Most popular makes:
- Jayco
- MDC
- Ezytrail
- Average motorbike loan amount: $18,182
- Average motorbike loan interest rate: 15.02% p.a.
- Average motorbike loan payment: $433 (five-year term)
- Median motorbike loan amount: $15,700
- Median motorbike interest rate: 13.69% p.a.
- Most popular makes:
- Yamaha
- Harley-Davidson
- Honda
- Kawasaki
- KTM
- Average boat loan amount: $53,486
- Average boat loan interest rate: 14.02% p.a.
- Average boat loan payment: $1,245 (five-year term)
- Median boat loan amount: $35,799
- Median boat interest rate: 11.95% p.a.
- Average jet ski loan amount: $26,931
- Average jet ski loan interest rate: 15.87% p.a.
- Average jet ski loan payment: $653 (five-year term)
- Median jet ski loan amount: $26,931
- Median jet ski interest rate: 15.87% p.a.
- Average personal loan amount: $26,668
- Average interest rate: 15.17% p.a.
- Average loan payment: $637
- Median personal loan amount: $22,085
- Median interest rate: 13.94% p.a.
- Average bad credit personal loan amount: $21,846
- Average bad credit interest rate: 20.25% p.a.
- Most common personal loan purposes:
- Car expenses
- Recreational vehicle expenses
- Work/business expenses
- Bill/debt coverage
- Other
- Largest average loan amount by purpose:
- Other ($48,693)
- Work/business expenses ($41,576)
- Bill/debt coverage ($27,896)
- Car expenses ($26,502)
- Recreational vehicle expenses ($23,923)
- Average caravan loan amount: $60,663
- Average caravan loan interest rate: 11.11% p.a.
- Average caravan loan payment: $1,158 (six-year term)
- Median caravan loan amount: $50,605
- Median caravan interest rate: 10.19% p.a.
- Most popular makes:
- Jayco
- MDC
- Ezytrail
- Average motorbike loan amount: $17,307
- Average motorbike loan interest rate: 14.66% p.a.
- Average motorbike loan payment: $409 (five-year term)
- Median motorbike loan amount: $14,345
- Median motorbike interest rate: 13.24% p.a.
- Most popular makes:
- Harley-Davidson
- Yamaha
- Honda
- Kawasaki
- Suzuki
- Average boat loan amount: $42,582
- Average boat loan interest rate: 14.59% p.a.
- Average boat loan payment: $1,004 (five-year term)
- Median boat loan amount: $35,901
- Median boat interest rate: 11.64% p.a.
- Average jet ski loan amount: $20,995
- Average jet ski loan interest rate: 12.83% p.a.
- Average jet ski loan payment: $476 (five-year term)
- Median jet ski loan amount: $19,999
- Median jet ski interest rate: 12.89% p.a.
- Average personal loan amount: $25,581
- Average interest rate: 13.71% p.a.
- Average loan payment: $591
- Median personal loan amount: $21,385
- Median interest rate: 12.99% p.a.
- Average bad credit personal loan amount: $21,708
- Average bad credit interest rate: 19.37% p.a.
- Most common personal loan purposes:
- Car expenses
- Recreational vehicle expenses
- Bill/debt coverage
- Work/business expenses
- Other
- Largest average loan amount by purpose:
- Work/business expenses ($44,810)
- Medical expenses ($31,650)
- Home improvement expenses ($26,970)
- Car expenses ($25,658)
- Bill/debt coverage ($24,605)
- Average caravan loan amount: $46,124
- Average caravan loan interest rate: 10.92% p.a.
- Average caravan loan payment: $876 (six-year term)
- Median caravan loan amount: $36,503
- Median caravan interest rate: 8.64% p.a.
- Most popular makes:
- Jayco
- MDC
- Stoney Creek Campers
- Average motorbike loan amount: $17,885
- Average motorbike loan interest rate: 12.33% p.a.
- Average motorbike loan payment: $401 (five-year term)
- Median motorbike loan amount: $14,454
- Median motorbike interest rate: 9.99% p.a.
- Most popular makes:
- Yamaha
- Harley-Davidson
- Suzuki
- Kawasaki
- Honda
- Average boat loan amount: $47,469
- Average boat loan interest rate: 11.64% p.a.
- Average boat loan payment: $1,047 (five-year term)
- Median boat loan amount: $40,000
- Median boat interest rate: 9.95% p.a.
- Average jet ski loan amount: $22,744
- Average jet ski loan interest rate: 9.88% p.a.
- Average jet ski loan payment: $482 (five-year term)
- Median jet ski loan amount: $26,404
- Median jet ski interest rate: 9.97% p.a.
- Average personal loan amount: $23,183
- Average interest rate: 13.64% p.a.
- Average loan payment: $535
- Median personal loan amount: $19,124
- Median interest rate: 12.85% p.a.
- Most common personal loan purposes:
- Car expenses
- Bill/debt coverage
- Recreational vehicle expenses
- Home improvement expenses
- Work/business expenses
- Largest average loan amount by purpose:
- Other ($36,594)
- Work/business expenses ($26,945)
- Car expenses ($25,007)
- Bill/debt coverage ($23,386)
- Recreational vehicle expenses ($21,889)
- Average caravan loan amount: $47,450
- Average caravan loan interest rate: 9.81% p.a.
- Average caravan loan payment: $875 (six-year term)
- Median caravan loan amount: $40,366
- Median caravan interest rate: 7.99% p.a.
- Most popular makes:
- Jayco
- MDC
- Opus
- Average motorbike loan amount: $19,794
- Average motorbike loan interest rate: 10.49% p.a.
- Average motorbike loan payment: $425 (five-year term)
- Median motorbike loan amount: $15,740
- Median motorbike interest rate: 8.49% p.a.
- Most popular makes:
- Harley-Davidson
- Yamaha
- Honda
- KTM
- Kawasaki
- Average boat loan amount: $46,044
- Average boat loan interest rate: 10.96% p.a.
- Average boat loan payment: $1,000 (five-year term)
- Median boat loan amount: $36,410
- Median boat interest rate: 9.19% p.a.
- Average jet ski loan amount: $23,081
- Average jet ski loan interest rate: 8.87% p.a.
- Average jet ski loan payment: $478 (five-year term)
- Median jet ski loan amount: $23,677
- Median jet ski interest rate: 8.49% p.a.
