Interest Rates

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What is an Interest Rate?

If you have been looking for a personal loan online, you have come across the term “interest rate.” The interest rate is the rate at which, usually expressed as a percentage per annum (per year), is the additional charge you must pay back a lender when you borrow a sum of money. Your interest rate is the way you “pay” for the loan. The interest is calculated on the sum you borrow, known as the principal. Your personal interest rate is calculated according to your ability to pay back your loans. This is determined in part by your credit score, employment status, residential history, and other measures of risk. Borrowers who have lower risk profiles generally pay lower interest rates.

Interest Rates vs. Comparison Rates

If you have already asked for your personalised interest rate or have seen the term “comparison rate” while looking for personal loans, a comparison rate is your interest rate plus any additional fees or charges associated with the loan. These may be account keeping fees, for example. This gives you the true cost of the loan, giving you an opportunity to directly compare other similar loans with comparison rates.

Fixed vs. Variable interest rates

NOW Finance only offers fixed interest rate personal loans. Even so, some lenders may offer a choice between fixed and variable interest rates. Fixed interest means an interest rate is “locked in” for the duration of the loan term, or for a set period. This means your repayments will be the same throughout the term. A variable interest rate means your rate might rise or fall in line with market rates. This means your repayments can also go up or down depending on how the market is faring.

Choosing a Personal Loan

When deciding on applying for a personal loan, you should factor in all the different aspects of a loan including comparison rates, fixed or variable rates, and loan terms. Longer loan terms means paying more interest over time, however it also means lower weekly or fortnightly repayments.

Please look at our kNOWledge base for more, or call a Personal Loan Advisor who can answer your questions.


Category: Interest Rates, Personal Loans IQ

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New loans only. Applications for finance are subject to NOW Finance’s lending and approval criteria. Terms and conditions may apply. No fees apply however if you do not comply with the terms of your loan, we may pass on to you any third party enforcement or recovery costs incurred by us. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years. For unsecured loans you can borrow between $5,000 to $50,000 with interest rates ranging from 5.95% p.a. (5.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*). For secured loans you can borrow between $15,000 to $100,000 with interest rates ranging from 4.45%p.a. (4.45% comparison rate*) to 15.45% p.a. (15.45% p.a. comparison rate*).  


The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the NOW Finance loans are based on a loan of $30,000 over 5 years. WARNING: The comparison rates given are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. NOW Finance does not charge any fees therefore the true cost of the loan or Comparison Rate will always equal the interest rate quoted.


An unsecured personal loan of $30,000 borrowed for 5 years with the interest rate of 5.95% p.a. (5.95% p.a. comparison rate), would estimate to a minimum total amount payable of $34,686.60 via the weekly payment option. Rates are subject to change.


Our confirmed guaranteed personalised rate may change if you provide NOW Finance with incorrect personal information or security details. In some circumstances, NOW Finance may require further information from you in order to provide you with your guaranteed personalised rate.

NOW Finance is a trademark of Now Finance Group Pty Ltd ACN 158 703 612 Australian Credit Licence number 425142, as agent for NF Finco 2 Pty Ltd ACN 164 213 030