Secured personal loan

Why?
Rates
Security
Key fees
How to apply

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Why choose a secured personal loan?

Get a lower interest rate

By offering your car as security for the loan, you can access a lower rate than our unsecured personal loan.

Borrow between $3k-$80k

Borrow up to $80,000 to spend on anything from a car to renovations.

Redraw facility on variable rate loans

Redraw money from the amount you're repaid if you need to, provided you're at least $500 ahead on your repayments. Each request is subject to approval and a fee.

Fixed rate

7.49% p.a. fixed interest rate
8.60% p.a. comparison rate^{^}
1-5 years flexible loan term
Set repayments for simpler budgeting

Variable rate

12.74% p.a. variable interest rate
13.81% p.a. comparison rate^{^}
Pay your loan off earlier with fewer fees
1-7 years flexible loan term

Is your car eligible as security?

The car you offer as security for the loan must be:

Registered in the applicant’s name once purchased.

A four-wheel vehicle that has never been extensively damaged or written off.

12 years old or less at the end of the loan term to qualify for a lower interest rate.

Covered for one year’s full comprehensive car insurance when you access the funds.

Repayment calculator

This calculator helps you estimate how much your personal loan repayments could be^#.

I'm interested in the following type of rate

Fixed Variable

I would like to borrow You can borrow between $3,000 - $80,000

I would like to borrow $

Over a loan term of (years) You can select a loan term between 1 and 5 years

Over a loan term of (years) You can select a loan term between 1 and 7 years

With an interest rate of

With an interest rate of % p.a.

Comparison rate of ^{^}

Comparison rate of ^{^} % p.a.

Calculate Calculate

Key fees

$12 Monthly administration fee
$10 Per redraw on variable loans
$195 Establishment fee (added to your loan amount). Excludes all government charges such as stamp duty, search fees, fees to register security interest with the Personal Property Securities Register
$150 Early repayment fee if you fully repay the loan within the first 12 months
$100 Early repayment fee if you fully repay the loan after the first 12 months and before the end of the loan term
Break costs If you choose to repay your fixed rate loan early in full or prepay at least $5,000 in any 12 month period or if your fixed rate loan is in default - break costs may apply. These costs are equal to the reasonable estimate of our loss for breaking a fixed loan term. Please refer to the Personal Loan Terms and Conditions for more details.

Prep for application success

COVID-19 has impacted the time it takes to process and follow up on incomplete applications. To ensure we assess your application in a timely manner, please read the following sections carefully before applying

For starters, make sure you meet our eligibility basics

Be aged 18 years or over
Have a regular permanent income before tax of at least $35,000 p.a.
Be an Australian citizen or have a permanent residency visa
If you’re a non-resident, have confirmed employment in Australia.

Some things that could help

Check your credit report

As part of reviewing your application we look at the information on your credit report, which is produced by an independent credit bureau. This report shows a snapshot of your liabilities, available credit, and your repayment behaviour for these accounts. To learn more about credit reporting in Australia visit www.bankofmelbourne.com.au/ccr.

It’s a good idea to view your own credit report and check your details are correct before starting your application. You can do this for free by visiting the credit bureau website directly, or via CreditSmart.org.au. We work with three bureaus: Equifax, illion and Experian, so you might like to check the report produced by each of them.

Get your documents and information ready

Before starting your application, make sure you have everything in the list below:

Current employer’s name, address and phone number
Your income information from the last 3 months, such as including payslips, bank statements and rental income (you won’t need this if your pay already goes into a Bank of Melbourne bank account)
Recent tax information if you're self-employed
Asset, savings and investment details
Details of all existing liabilities that are in your name (e.g. personal loans, other credit or store cards, ‘interest-free’ instalment purchases, home loan)
All your regular monthly expenses (including school fees, insurance, utilities etc.)

If you are an existing Bank of Melbourne customer, you will also need to:

Apply as an Existing Customer in the application form and log in to your account
Once logged in, double-check that your personal details (name, address etc) are up-to-date. If not, log in to internet banking to update them. Allow 24 hours for records to update.

Double-check your application before pressing ‘Submit’

Don’t make multiple applications

How to apply for a loan

Apply online in 10 minutes – 5 minutes for existing customers – depending on your internet connection.

We’ll then review your application and may ask you for more details to verify your income and learn about the car you’re offering as security.

When you’re ready, provide us with information about your car and we’ll review it to make sure the vehicle is suitable for your secured loan.

Once your application has been approved, visit a branch with proof of comprehensive insurance to review and accept the contract. We’ll then credit the funds into your account or give you a cheque payable to the car seller.

The Detail

Before making a decision, please read these documents to ensure you’re aware of all fees, charges and interest rates.

Terms and conditions

General details of our personal loan products

Fees and charges

All costs for specific personal loan services and accounts

Not right? Try these

Unsecured personal loan

A personal loan that
doesn’t require security

Personal Overdraft

Be ready to cover
unexpected expenses

View all personal loans

The Detail

Credit criteria, fees, charges, terms and conditions apply.

The advice on our website is prepared without knowing your personal objectives, financial situation or needs. Before you act on this or any advice, please consider if it's right for you. Read the above product disclosure documents as well as the Internet and Phone Banking Terms and Conditions (PDF 576KB) before making a decision and consider whether the product is appropriate for you. If you need help, call 13 22 66.

*$200 Visa eGift card offer: This offer is only available to customers who apply and are approved for a new Unsecured or Secured Personal Loan and sign the loan contract via e-contract between 10 November 2020 and 19 January 2021. You must provide your email address at the time of application to receive the eGift Card. Applicants can apply by calling 13 22 66, visiting a branch or via the online ‘Apply now’ application button. This offer is available to single applicants only and cannot be used in conjunction with any other offer and may be varied or withdrawn at any time. Limit of one eGift Card per customer. Read the product Terms and Conditions before deciding and consider whether a Personal Loan is appropriate for you. If you need help, call 13 22 66.

You will be sent a unique redemption code via email along with instructions on how to redeem your Visa eGift card, within 12 – 15 weeks of signing your new loan contract. You must follow the redemption instructions and activate your redemption code within 85 days of receiving your code. After this point, the code to redeem will expire and you will not be able to redeem the Visa eGift Card. Once you have activated the redemption code, your Visa eGift card is valid for 36 months. Please check your Visa eGift Card for usage instructions and expiry date. Terms and Conditions of the Visa eGift Card will be available on the website. Visa eGift Cards are non-refundable and not redeemable for cash. Expired eGift Cards cannot be extended or replaced.

The interest rate may vary based on the value of the car you offer as security.

Secured Personal Loan Repayment terms range from 1 to 7 years. Interest rate ranges and representative examples are based on a secured loan of $30,000 borrowed for 5 years:

with the minimum interest rate of 7.49% p.a. (comparison rate 8.60% p.a.), the estimated total amount payable including fees is $37,014
with the maximum interest rate of 12.74% p.a. (comparison rate 13.81% p.a.), the estimated total amount payable including fees is $41,701.

^ Comparison rates help you understand the true cost of a loan. The comparison rate is based on a Secured Personal Loan with a loan amount of $30,000 and a term of 5 years. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

# Repayment Calculator assumptions

Length of month
All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days' interest dependent on the number of days in the particular month.

Number of weeks & fortnights in a year
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.

Rounding of amount of each repayment
In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts.

Interest Rate
The interest rates represented on this page are Bank of Melbourne's standard interest rates and exclude any package or promotional discounts and are subject to change.

Please note – For secured loans, if the loan to value ratio of your loan is greater than 150%, then an extra 1% p.a. may be added to the interest rate for your loan. For unsecured loans, your actual interest rate applicable to the loan will be based on the information you provide at the time of your application and our credit assessment.

Any calculation made by you using this calculator is intended as a guide only. It is for illustrative purposes only and is based on the accuracy of the information provided. The calculator does not take stamp duty or other government charges into account. The calculations does not constitute an offer from Bank of Melbourne.