Secured Personal Loans – Best Online Credit in Australia

When it comes to personal loans in Australia, secured personal loans are typically easier to get approval for than other types of loans. Why? Because there’s some form of collateral involved. Imagine being able to get the money you need without being held hostage by a poor credit rating or the fact that you get your income from sources other than a regular job. Now you don’t have to imagine it because you can apply for quick and easy secured personal loans at Pronto Paydays!

What Are Secured Personal Loans

If you had to think of an example of a secured personal loan, it would be applying for a loan to buy a car where the car serves as the security (collateral) for that loan. If you default on your loan, the lender can seize the car and sell it to cover costs. Much the same, a secured personal loan can be providing your existing car, property, jewellery or expensive professional camera equipment as security on a cash loan.

Other types of secured personal loans include short-term loans up to $50,000, using your current assets such as your home or machinery, equipment, stocks and bonds, or similar collateral. At Pronto Paydays, we offer loans of up to $10,000.

Common reasons to apply for a secured personal loan:

  • Consolidate debt
  • Home renovations
  • Studies/education
  • Buy a new car/motorbike or other types of vehicle
  • Equipment
  • Vacations
  • Cover medical costs

And much more.

Using collateral to borrow money is beneficial because the low risk to the lender means you get a better interest rate than with a regular loan.

Acceptable forms of collateral include:

  • Vehicles (car, motorbike, boat)
  • Certificates of deposit
  • Savings
  • Stocks and bonds
  • Real estate
  • Jewellery
  • Expensive equipment

Types of Secured Personal Loans

The following types of loans fall into the secured personal loans category:

  • Secured Personal Loans
  • Home Loans (mortgage loans) and Vehicle Loans
  • Bad Credit Loans
  • Guarantor Loans
  • Car Title Loans and Pawnshop Loans
  • Share-Secured and Savings-Secured Loans

Features Of an Instant Secured Personal Loan

All secured personal loans share the following features:

Loan Amount

Most personal loans range from $2,000 to $50,000 or more. If you want a higher loan amount, you will need to have an asset worth the same or more than the amount you’re requesting. For example, if you are taking out a car loan and plan to use the car as collateral, the loan amount must reflect the value of the car. On the other hand, if you need $30,000 for home renovations, you may use your home as collateral, as this will more than cover the loan amount. At Pronto Paydays, we specialise in small short term loans of up to $2,000, but some of our lenders do offer larger secured loan amounts of up to $10,000.

Term Of Loan

The repayment term of a secured personal loan is set according to the borrower’s affordability and choice. Most of our loans are repaid over 30 days to 24 months, but longer loan terms can be arranged on larger amounts.  

Repayment Schedule

Repayments on a secured personal loan are often scheduled monthly, although there are options for weekly and fortnightly payments, too. Lenders have become more flexible over the years, gearing repayment schedules to borrowers’ paydays and specific financial situations. Take the time to read through the expected repayment schedule before signing your loan agreement.

Fees Charged

ASIC (Australian Securities and Investments Commission) guidelines dictate the fees and interest rates lenders can charge on short term loans.  This helps the borrower and the lender. According to ASIC, “The law does not allow the total amount of fees on loans to exceed 48%. This rule applies to loans of more than $2,000, loans with terms of more than two years; and all continuing credit contracts (such as credit cards).” This rule is good news for you – it means the fees on smaller loans ($2,000 and below) come with no interest rate attached. In addition, such small loans only have a 20% establishment fee and a 4% monthly service/maintenance fee.

Other fees to be aware of include:

  • Early settlement fees
  • Late payment fees
  • Debt collection fees (should the lender have to recoup costs from you)

Lender Reputation – Choosing the Best Secured Personal Loans

Lenders with a good reputation have nothing to hide and are readily available to their customers. A reputable lender has a credit license, has good online reviews, and clearly advertises its contact details. Transparency is important to Pronto Paydays and the lenders we work with. Therefore, we recommend investigating the lender’s reputation before signing your agreement.

Disbursement Time

No one likes to wait around for their money, especially when a financial emergency is looming.  Secured loan applicants usually need the money now, not next week! To put your mind at ease, the lenders we work with typically approve and payout loans within one hour – they give the name Pronto Paydays meaning! In the event of a delay, you can expect to receive the funds the next day. Of curse, keep in mind that applying for a loan on the weekend or on holiday can result in approval and payout delays.

Examples of Secured Personal Loans

Check out the table below for a summary of just some of the secured personal loans available. Of course, these are just examples and the figures are subject to change without prior notice.

Lender Interest Rate Amount Est Fee Total to Pay Back
Swoosh 47% APR $5,000 $416 $6,888
Clear Cash 48% APR $10,000   $11,303

Secured Loans vs Unsecured Loans

How do secured personal loans and unsecured personal loans differ? The two loan types differ in the following ways.

Secured Loans – The Need for Collateral

If you apply for a secured loan, you need to have collateral whereas unsecured loans do not need collateral at all. Of course, this means unsecured loans are riskier for lenders, and secured loans are riskier for borrowers. The amount of interest charged on a loan amount typically indicates just how risky the lender deems the transaction. In general, unsecured loans come with higher interest rates than secured loans.

Credit Profile Scrutiny

Credit scores come into play, regardless of what type of loan you apply for. However, some lenders place less emphasis on your credit score if you can afford the loan and are gainfully employed.  Borrowers who have a poor credit rating will find it easier to apply for a secured personal loan while struggling to get approval for an unsecured loan, they are more likely to get approved for a no credit check loan, like the secured personal loans. On the flip side, borrowers with an excellent credit score generally have no problem applying and getting approval for unsecured loans.

Risk to the Lender

Secured loans present far less risk to the lender; that’s why they are typically easier to achieve than unsecured loans. If you don’t pay your loan off, the lender will take possession of your asset. The risk lies with the borrower.  With an unsecured loan, the risk lies with the lender.

Advantages and Disadvantages of Fast Online Loans


· Lower Interest Rates

Secured personal loans are the lowest risk to lenders, and therefore they can offer lower interest rates, saving you substantial money.

· Higher Loan Amount

Due to the collateral securing your loan, lenders can offer you higher amounts to borrow. This can be beneficial to both you and the lender. At you can apply for secured personal loans of varying amounts.

· Improving Your Credit Score

With the benefit of borrowing higher amounts at a lower cost, you put yourself in an ideal position to improve your credit score. This improvement means you will be able to borrow even more in the future if the need arises.


· Risk to Your Property

If you are unable to repay the loan or make your payments on time, the lender can take the asset(s) you put up against the loan and sell them to recoup costs. It is essential to ensure you are paying your loan down as per the agreed terms. If you find yourself plunged into debt and need advice, it’s recommended to call the National Debt Helpline.

Eligibility Criteria

If you want to apply for a personal loan, make sure you’re eligible. You can apply with Pronto Paydays if:

  • You’re an Australian citizen or registered permanent resident
  • You’re at least 18 years old
  • You earn $350 or more each week
  • You have collateral to secure the loan
  • Your Centrelink payments or government benefits amount to less than 50% of your income

Application Process for a Small Secured Loan

Applying for a bad credit secured loan or fast online loan will take just five minutes of your day. You can complete all of these steps from the comfort of your home.

Follow these quick and easy steps.

Step 1: Get Your Documents in Order

To support the information you provide in your loan application, you will need documentation. Therefore, have the following on hand before you fill out the online application form.

  • Your ID (you can use your  driver’s license or Medicare card)
  • Digital bank statements
  • Proof of address (you must have lived there for three months)
  • Proof of regular earnings (more than $350 per week)

Step 2: Fill Out the Online Application Form

By filling out our application form just one, Australia’s leading short term lenders get the opportunity to assess your loan request and make a decision. Then, when one of the lenders extends a loan offer (which usually takes a few minutes), you will be immediately notified and directed to their website for the next step.

What’s included on the application form? We will need the following information:

  • Your personal particulars
  • Contact details
  • Employment details
  • Financial information

Before you click “Apply”, make sure that you read the privacy policy and terms and conditions.

Step 3: Sign the Loan Agreement

Once the lender pre-approves your loan request, they will ask for additional supporting documents and forward you a copy of your loan agreement. Read through it to make sure you’re happy with the repayment schedule and terms and conditions. If you’re eager to get your loan and find the agreement acceptable, sign it and send it back to the lender. That’s it – there’s nothing left for you to do!

Step 4: Get Your Money

Approved loans are typically honoured within an hour, but just in case there is a delay, it can take up to 24 hours (excluding weekends and holidays).


Do Secured Personal Loan Providers Accept Borrowers with a Bad Credit Rating?

Yes, most secured personal lenders are comfortable lending money to the right candidate with sufficient collateral. Your credit score is less important than the value of your collateral and the outcome of your affordability assessment. You can apply for a bad credit secured personal loan at Pronto Paydays.

Can I Make an Early Payment on My Secured Personal Loan?

Yes, online loan providers allow early settlement of accounts, however, some will charge an early settlement or early exit fee. Check with the lender before trying to settle the account early.

How Long Will it Take for My Pronto Paydays Secured Personal Loan to be Approved?

After completing the loan application form, you should receive an outcome in just a few minutes.

How Quickly Will I Receive the Secured Personal Loan Funds?

The lenders that we work with at Pronto Paydays offer same day payout. In most instances, payment is made within one hour of approval. However, there are times when the payment can take up to 24 hours, and there may be slight delays if you apply on a weekend or holiday.

Who Can Apply for a Secured Personal Loan?

If you earn a regular income, have a permanent Australian address, and have suitable collateral – you can apply for a secured personal loan at Pronto Paydays. While being employed is not always a requirement with secured personal loans, some lenders do stipulate it as a requirement.