Skip to navigation Skip to content

Secured vs Unsecured Loans

Secured vs Unsecured Loans – What’s the Difference?

Anybody searching for a personal loan is bound to come across secured and unsecured loan options, but many people don’t know what this actually means. If you want to make the right choice for yourself and your situation, you’ll need to know the difference between these two important loan types.

Sul image 2

What Are Secured Loans?

A secured loan is a type of loan where you use an asset you own, such as a car or a property, as collateral for the loan. As a result, secured personal loans typically have lower interest rates than unsecured personal loans, given that the lender has less risk.

However, it’s important to remember that this means if you are unable to repay the loan, the lender has the right to take possession of the asset and sell it to recover their money. At Handy Finance we’ll make sure that you have a repayment plan that suits your budget and lifestyle, so you can enjoy your loan without any stress.

Sul image 1

What About Unsecured Loans?

Unlike secured loans, unsecured loans don’t require you to provide an asset for security purposes. The lender takes a calculated risk, based on factors such as your income and credit score. This can make it difficult to borrow large amounts of money, as the risk to the lender increases with the more you borrow.

It is worth noting that without an asset needing to be provided, the loan process is generally much quicker for unsecured loans, meaning you have the money you need sooner.

Sul image 3

Which Loan Should I Choose?

The loan type that is best for your circumstances will likely depend on what you need it for. Getting a mortgage for property will almost always involve a secured loan, with the asset used as collateral being the property itself. This can also be the case with car purchases, although unsecured loans are a viable option there too.

When you need a loan for something such as a wedding, holiday or medical expenses, you may not have an asset you can offer as security, meaning an unsecured loan is the way to go.

Handy loans can either be secured or unsecured, meaning you can choose the option that best suits your circumstances. Depending on a variety of factors, you can borrow up to $75,000 with Handy Finance and pay it off over one to seven years, with weekly, fortnightly or monthly repayment options.

This information is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, we recommend that you consider whether it is appropriate for your circumstances and you obtain independent advice.

Sul image 4

Handy personal

Handy Finance is all about helping Australians get where they are going in life, which is why our loan approval process is quick and simple. With low rates and flexible repayments, you can have what you need now, rather than later, without any of the stress often associated with finance.

To get started with a Handy loan, find out your personal rate today, without affecting your credit score. From there, the process is easy – you’ll be pre-approved in minutes on well on your way to having the funds you need.

Get started

Frequently asked questions

Loan Terms and Conditions

Secured car loans can have a lower interest rate. By providing your car as security for the loan, lenders will face less risk if you cannot make your repayments. This may lead to a more competitive interest rate being offered.

At Handy Finance, we have a $0 early repayment fee on all our loans, including our secured car loans. You can pay off your secured car loan early without incurring extra fees.

You can always sell a car. If you sell a car and the sum you receive doesn’t cover the loan in full, contact us. We can help you to refinance the loan so that you can continue to pay it off in installments that meet your new financial situation.

You can! At Handy Finance, we can help you refinance your secured car loan, even if it was taken out with another lender. Give our loan experts a call today to find out more information on how refinancing works.

With a secured car loan from Handy Finance, you can borrow between $2,001 and $75,000. The final amount you borrow will be based on your financial circumstances: your credit score, income and the cost of the car you want to purchase.

At Handy Finance, we offer pre-approval for secured car loans. Pre-approval can help you get a better idea of how much you can borrow before you start car shopping. You can easily apply for pre-approval – just submit all the relevant documentation online. Once received, our loan experts will review your financial situation and share an indicative sum with you. Pre-approval with Handy Finance lasts for one month. Once this has passed, our credit experts will need to reassess your application to see if your financial circumstances have changed.

There are no vehicle age limits on the car you can purchase with a secured car loan from Handy Finance. There are no restrictions on the make or model you want to buy either.

You can purchase other motorised vehicles with your secured car loan, however one of our other loan products may be more suitable. At Handy Finance, we offer a range of other secured vehicle loans, including motorcycle loans and caravan loans. Contact our team today to discuss the right option for you.

Loan Application and Approval

To be eligible for a secured car loan with Handy Finance, you need to be at least 18 years of age, an Australian citizen or permanent resident and have a regular source of income from employment (including self-employment). You must also have no outstanding or unpaid defaults with other lenders, and you must have no history of bankruptcy or be a party to a current court judgment.

When you apply for a secured car loan with Handy Finance, you’ll need to provide documentation that verifies your identity and gives our loan experts an indication of your financial circumstances. This includes documents like your driver’s licence and bank statements.

You can! At Handy Finance, one of the eligibility criteria you must meet before applying for a personal loan is being currently employed. This includes self-employment. You will need to provide bank statements to support your application.

Fast, flexible finance is our motto at Handy Finance. Applying for a secured car loan online only takes a few minutes, and you’ll have an indicative decision soon after. Once your application has been approved, the final funds will be released into your account within 24 hours.

You can use the Handy Finance Car Loan Calculator to get a more complete picture of your buying power. By plugging in essential information – such as loan amount, loan term, repayment frequency and credit rating – the calculator can show you an estimated repayment sum, interest rate and comparison rate. While this information is only an estimate, it can prove helpful in deciding budget and what to request in your final loan application. 

For a more precise figure, you can also receive a personalised quote by filling out the application form online and submitting it along with your ID and bank statements. Your personalised quote is based on the information you provide to our credit team, so it can be considered more accurate than using the car loan calculator.

Financial Implications and Obligations

Yes, if you can’t make your repayments on time, this will be noted on your credit report. If you are not able to make your regular payments, contact the Handy Finance team as soon as possible, to see how we can work together towards a solution for you.

You can! At Handy Finance, we have a $0 early repayment fee, so you are free to pay off your loan early if your circumstances allow. We understand that financial situations can change – that is why we also allow you to adjust the frequency of your repayments as needed. Get in touch with our loan team to update your repayment schedule.