What are typical fees for personal loans?

Typical personal loan fees consist of upfront fees and ongoing or monthly fees which are paid throughout the life of your loan. Early repayment fees may apply if you decide to make additional payments outside of your contracted repayment amount or if you pay off your loan ahead of schedule. Penalty fees, such as late payment fees, will vary between lenders. To minimise the fees you are charged, make sure to read your lenders’ terms and conditions carefully.

Upfront Fees

Upfront fees, also known as establishment fees or credit assistance fees, are ‘once-off’ charges that are applied at the start of a personal loan. They can be a flat fee, a tiered fee based on the size of your loan, a percentage or even a hybrid of these. At Plenti, our establishment fee — also known as a credit assistance fee — is based on the size of your loan, however, it is not repaid at the beginning of your loan. Instead, this fee is broken down and included in your monthly repayment.

If you decide to use a broker to help with your loan application, you can also expect to pay a brokerage fee for their services. The amount charged will vary between brokers and is often charged as either a flat fee or a percentage of your loan amount. 

The fees might look small but remember, upfront fees are usually added to the amount you wish to borrow, so you’ll end up paying interest on those fees as well.

Ongoing or Monthly fees

Also known as account-keeping fees or loan management fees, these are fees that are paid every month across the life of the loan. These fees don’t reduce the amount you owe. For example, a $10 monthly fee on a 5-year loan adds up to $600 in ongoing fees across the life of the loan.

A lot of lenders may have low upfront fees, but their ongoing monthly fees end up costing the borrower more in the long run. The good news is, when you apply for a Plenti loan through our website, you won’t be charged any monthly or ongoing fees.

Early Repayment Fees

If you can manage it, repaying your loan as quickly as possible is a smart way to reduce the overall amount of interest you pay on your loan. However, the last thing you want is to be hit with an early repayment fee (also known as an early exit fee) that undoes all your hard work.

Late or missed payment fees

On the other side of the coin are fees for late or missed payments. While we know you’ll do your best to avoid them, sometimes life happens and you may miss a direct debit. Be prepared by knowing exactly what the fees are and when and why they’re charged. You’ll also want to ensure you make up that payment as soon as possible or you could risk paying a recurring arrears fee while your account shows failed payments. These are common fees and the exact amount charged will vary between lenders.