Personal Loan Rates and Fees
The whole cost, explained first.
Three numbers decide what a loan really costs: the rate, the fees, and the term. Here is how each works, and what realistic examples look like end to end.
The three numbers that matter
Interest rate
Charged per year on what you still owe, and fixed for the term on the loans we arrange. Your rate is personal: it is priced off your credit file, not the billboard.
Establishment fee
A one-off lender fee to set the loan up, usually financed into the loan. Always shown in dollars on your offer, never buried in a percentage.
Total payable
Every repayment added up: the amount you borrowed, plus all interest, plus all fees. It is the only number that tells you what a loan truly costs.
Worked repayment examples1
Fortnightly repayments with a $240 establishment fee financed into the loan. These are illustrations, not offers: your rate depends on your credit file and the lender.
| Borrowed | Establishment fee | Rate, fixed | Term | Fortnightly repayment | Total payable |
|---|---|---|---|---|---|
| $10,000 | $240 | 9.95% p.a. | 3 years | $152 | $11,864 |
| $20,000 | $240 | 12.50% p.a. | 4 years | $248 | $25,792 |
| $30,000 | $240 | 15.95% p.a. | 5 years | $338 | $43,979 |
| $8,000 | $240 | 19.95% p.a. | 2 years | $193 | $10,026 |
Questions? We've got answers
What rate will I actually get?
The honest answer: it depends on your credit file, your income and outgoings, the amount, and the term. Lenders price in tiers, so two people borrowing the same amount can pay very different rates.
That is exactly why advertised "from" rates mean so little, and why every BorrowClub offer shows your actual rate with the total payable, before you sign.
What is an establishment fee?
A one-off fee the lender charges to set up the loan, usually added to the amount you borrow. It is shown in dollars on your offer, and it is included in the total payable so you never have to do the maths yourself.
Does BorrowClub add a fee on top?
No. BorrowClub never charges you a fee. We are paid a one-off introduction fee by the broker or lender we introduce you to, and we tell you that up front because you would find out anyway.
Can I pay my loan off early?
Usually yes, and if you can, it is often worth doing: less time means less interest. Some lenders charge an early repayment recovery amount, and whether one applies is stated on your offer. Ask your adviser to point it out before you sign.
What if I am struggling to make a repayment?
Contact your lender as soon as you know, because every NZ lender must consider a hardship application and the earlier you ask, the more options exist. Free, independent help is also available from MoneyTalks on 0800 345 123.
Visit the guides library for the longer answers.