Personal Loan Fees Explained: Your Guide

When comparing personal loans, interest rates often get the most attention, but fees can significantly affect how much you repay overall. Some loan fees are unavoidable, while others depend on the lender, loan structure, or how you manage repayments.

Understanding personal loan fees can help you compare loans more accurately, avoid unnecessary charges, and budget for the real cost of borrowing. In this guide, you’ll learn about common personal loan fees in Australia, how they work, and what to look out for when reviewing loan offers. We’ll also explain, in general terms, how Credit24 approaches fee transparency so borrowers can make more informed decisions.

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Why look at personal loan fees?

An interest rate alone doesn’t reflect the full cost of a loan. Two loans with the same rate can have very different total repayment amounts once fees are included.

Some fees apply upfront, others are ongoing, and some are only charged in specific situations, such as late or missed payments. Understanding these costs can help with:

• Making clearer loan comparisons
• Identifying avoidable or unnecessary charges
• Budgeting for repayments more accurately
• Spotting poor-value or high-risk loan structures

In Australia, lenders are required to disclose a comparison rate that includes interest and most mandatory fees. However, not all fees are captured, which is why reviewing individual charges still matters.

Common personal loan fees in Australia

Below is an overview of the most common personal loan fees you may encounter and what they mean in practice.

Establishment fee (setup fee)

What it is
A one-off fee charged when a loan is approved and set up. It may also be called an application, origination, or setup fee and generally covers administrative and assessment costs.

Typical costs

• $0 to around $990
• Often charged as a fixed amount or a percentage of the loan

Key considerations

• May be deducted from the loan amount or added to the balance
• Interest may apply if added to the loan
• Usually non-refundable
• A higher fee does not necessarily mean better loan features

Comparing total loan cost is more useful than focusing on this fee alone.

Loan service fee (account keeping fee)

What it is
An ongoing fee charged monthly or annually to maintain the loan account.

Typical costs

• $0 to around $15 per month

Key considerations

• Can add up significantly over longer loan terms
• Charged regardless of extra repayments
• Included in the comparison rate

Small monthly fees can have a large impact over time.

Early repayment fee

What it is
A fee charged if you repay your loan before the end of the agreed term.

Typical costs

• $0 to several hundred dollars

Key considerations

• More common with fixed-rate loans
• May reduce the benefit of paying off a loan early
• Some lenders allow limited extra repayments without charge

This fee is important if you expect to repay ahead of schedule.

Late payment fee

What it is
Charged when a scheduled repayment is missed or paid late.

Typical costs

• Around $15 to $35 per missed payment

Key considerations

• May affect your credit file
• Can trigger additional penalties
• Often avoidable with automatic payments

Dishonour fee

What it is
Charged when a payment fails due to insufficient funds.

Typical costs

• Around $10 to $50 per failed payment

Key considerations

• May apply alongside a late payment fee
• Bank fees may also apply
• Maintaining a buffer in your account can help avoid this

Payment processing fee

What it is
A fee for using certain repayment methods.

Typical costs

• Credit card payments may attract a percentage fee
• BPAY or direct debit is often free or low cost

Key considerations

• Not included in comparison rates
• Easily avoided by choosing low-cost payment methods

Repayments made via OSKO-enabled transfers are often treated similarly to standard bank transfers, depending on the lender and your bank.

Redraw fee

What it is
A fee for accessing extra repayments you’ve already made.

Typical costs

• $0 to $50 per redraw

Key considerations

• Only relevant if your loan offers a redraw facility
• Reduces the flexibility benefit of extra repayments

Variation fee

What it is
Charged when you change loan terms such as repayment amount or frequency.

Typical costs

• Around $50 to $300 per change

Key considerations

• Sometimes negotiable
• Multiple changes can add up
• Refinancing may be a lower-cost alternative

Settlement fee

What it is
A fee charged when the loan is fully repaid and closed.

Typical costs

• $0 to around $400

Key considerations

• Separate from early repayment fees
• Not included in comparison rates

Loan protection insurance

What it is
Optional insurance designed to cover repayments in certain circumstances.

Typical costs

• Often calculated as a percentage of the loan

Key considerations

• Never mandatory
• May include exclusions and waiting periods
• Alternative insurance options may offer different value

Want to avoid most of these fees? Meet Credit24

Some borrowers prefer lenders with simpler fee structures and clear upfront disclosure.

Credit24 generally offers:

• Fixed interest rates
• A clearly disclosed establishment fee
• Late payment fees only if repayments are missed

Credit24 generally does not charge:

• Monthly loan service fees
• Early repayment penalties
• Fees for extra repayments
• Redraw or settlement fees

Before applying, all fees are shown clearly so borrowers can understand the total cost upfront. No add-ons or insurance products are required.

Funds may be paid to eligible bank accounts using OSKO, depending on your bank.

This information is general only and does not consider your personal financial situation. Credit is subject to eligibility criteria, fees, and terms and conditions.

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Disclaimer

IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839.

The information in this article is general in nature and does not consider your objectives, financial situation, or needs. Lending criteria, fees, and charges apply. For product details, eligibility requirements, and full terms and conditions, visit www.credit24.com.au.