• A secured loan is backed by the asset you're financing (a car, boat, caravan, motorbike, or similar) — the lender can repossess it if repayments aren't met

• A personal loan is unsecured — no asset is tied to the loan, but rates are typically higher to offset the lender's added risk

• Best for: financing a specific asset — cars, boats, caravans, motorhomes, motorbikes, trucks, and similar

• Indicative rate range: 6.95%–27.95% p.a.

• Indicative loan amount: $5,000–$500,000

• Typical term: 1–5 years (some lenders offer up to 7)

• Generally lower rates and higher borrowing limits, because the asset secures the loan

• Best for: costs without a financeable asset — debt consolidation, home improvements, travel, weddings, medical or dental costs, moving costs

• Indicative rate range: 10.95%–29.95% p.a.

• Indicative loan amount: $2,000–$75,000

• Typical term: 1–5 years

• No asset required, but rates tend to be higher than secured loans

• Buying a car, boat, caravan, or motorbike? A secured loan against that asset will usually get you a lower rate.

• Consolidating debt, funding a wedding, or covering a medical bill? A personal loan is the more common fit, since there's no asset to secure against.

• Want a lower rate and already own an asset outright? Some lenders allow you to secure a personal-style loan against an asset you already own — worth asking about.

• Need funds fast with minimal paperwork? Personal loans are usually quicker to arrange, since there's no asset valuation involved.

If you're financing a $30,000 boat, a secured loan against that boat would typically come with a lower indicative rate than an unsecured personal loan for the same amount — because the lender has the asset as security if things go wrong. The exact rate and repayment will depend on your credit profile, deposit, and the lender's criteria at the time.

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It depends on the lender — Simplify compares across a panel of lenders, some of whom specialise in a wider range of credit profiles.

Generally yes, because there's no asset backing the loan. However, the actual rate you're offered depends on your individual circumstances, not just the loan type.

The lender may repossess the secured asset. It's worth discussing Payment Protection Insurance with your Loan Expert if you're concerned about unexpected changes to your income.

Yes — secured loans can apply to a range of assets beyond cars, including boats, caravans, motorhomes, and some commercial equipment, depending on the lender.

Not sure which loan type suits your situation? 👉 Contact a Loan Expert