Private personal loans provide fast, flexible funding for personal needs when traditional banks decline or move too slowly.
What Are Private Personal Loans?
Private personal loans are personal finance from non-bank private lenders, available as:
- Secured: Backed by property or assets (lower rates)
- Unsecured: No security required (higher rates)
Types of Private Personal Loans
1. Property-Secured Personal Loans
Security: Your home or investment property Rates: 8-14% p.a. Amount: $10,000 - $500,000+ Term: 1-5 years
Best for:
- Larger amounts ($50k+)
- Credit issues
- Best rates for private lending
2. Unsecured Private Personal Loans
Security: None (personal guarantee only) Rates: 12-25% p.a. Amount: $5,000 - $50,000 Term: 1-5 years
Best for:
- Smaller amounts
- No property to secure
- Fast approval (no valuation)
3. Private Lines of Credit
Revolving credit: Draw as needed Rates: 12-20% p.a. Amount: $10,000 - $100,000
Why Use Private Personal Loans?
Banks decline personal loans for:
- Bad credit (defaults, bankruptcy)
- Too many existing debts
- Self-employed income
- Recent job changes
- Casual/contract employment
- High expenses vs income
Private lenders offer: ✅ Flexible credit assessment ✅ Fast approval (3-7 days) ✅ Asset-based lending (property security) ✅ Individual review (not just credit score) ✅ Complex situations accepted
Common Uses
Top 10 uses for private personal loans:
- Debt consolidation - Pay off credit cards, store cards
- Medical expenses - Surgery, dental, treatments
- Home renovations - Kitchen, bathroom, extensions
- Weddings - Wedding costs
- Holidays/Travel - Dream trip funding
- Education - Course fees, living expenses
- Car purchase - Vehicle buying
- Emergency expenses - Unexpected costs
- Legal fees - Divorce, litigation
- Tax debts - ATO payment
Private Personal Loan Rates
Secured (Property):
- Good credit: 8-11% p.a.
- Fair credit: 10-14% p.a.
- Bad credit: 12-18% p.a.
Unsecured:
- Good credit: 12-18% p.a.
- Fair credit: 15-20% p.a.
- Bad credit: 18-25% p.a.
Example: $30,000 Loan, 5 Years
Secured @ 10% p.a.:
- Monthly: $637
- Total interest: $8,220
- Total: $38,220
Unsecured @ 15% p.a.:
- Monthly: $714
- Total interest: $12,840
- Total: $42,840
Difference: $4,620 over 5 years
Requirements
Secured Personal Loans: ✅ Property equity (25%+ available) ✅ Some form of income ✅ Valid purpose ✅ Ability to make repayments
Unsecured Personal Loans: ✅ Regular income ✅ Australian residency ✅ Over 18 years old ✅ Bank account
Credit: Flexible - bad credit accepted
Debt Consolidation Strategy
Common scenario:
Your Debts:
- Credit card 1: $15,000 @ 19% = $2,850/year interest
- Credit card 2: $10,000 @ 21% = $2,100/year interest
- Personal loan: $20,000 @ 16% = $3,200/year interest
- Total: $45,000 owing, $8,150/year interest
Private Secured Loan Solution:
- $45,000 @ 11% p.a. = $4,950/year interest
- Save: $3,200/year
- Single monthly payment (easier to manage)
- Fixed term (debt-free date)
Secured vs Unsecured Decision
Choose Secured If: ✅ You own property ✅ Want best rate (8-14% vs 15-25%) ✅ Larger amount ($50k+) ✅ Longer term preferred
Choose Unsecured If: ✅ Don't own property ✅ Smaller amount (under $30k) ✅ Don't want property at risk ✅ Very fast approval needed
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