Secured Personal Loan Commonwealth Bank: See all the details and how to do it

06/12/2025 • Marcos Vinicius • Personal Finance

A secured personal loan from Commonwealth Bank is an innovative lending option that offers borrowers the ability to secure their loan against an asset, predominantly a car, which must be up to seven years old.

This structure not only makes it easier for those who may be credit-impaired (negativado) to access funds, but it also generally offers lower interest rates compared to unsecured loans, enhancing affordability for a wider range of customers.

Applicants can borrow amounts ranging from $4,000 to $120,000, making this loan suitable for a variety of needs, from purchasing a new vehicle to consolidating debts.

The comprehensive structure of this loan means that your car serves as collateral, providing the bank with an assurance, which translates to more favorable loan terms for you.

Borrowers who invest in energy-efficient vehicles may receive additional discounts, further enhancing the cost-effectiveness of this loan.

This not only supports environmentally conscious decisions but also results in financial savings over the loan period.

Lower interest rates compared to unsecured personal loans.
Flexibility to make additional repayments without any penalties.
Loan management through the CommBank app and NetBank.
Availability of energy-efficient vehicle discount.

Whether you are looking to finance a new car or need funds for another major purchase, the Secured Personal Loan from Commonwealth Bank could be a viable option, especially for borrowers who may have previous credit issues (negativado) and are seeking manageable terms.

Benefits of the Secured Personal Loan from Commonwealth Bank

Secured personal loans carry several advantages that make them appealing to various borrowers. Commonwealth Banks offering is distinguished by several key features that enhance its appeal.

Lower Interest Rates

With interest rates starting around 5.29% p.a. (comparison rate 6.72% p.a.), these loans typically offer lower rates than unsecured alternatives due to the security of collateral.

Flexible Repayment Options

Borrowers have the flexibility to choose weekly, fortnightly, or monthly repayments, as well as make additional repayments without incurring fees.

Energy-Efficient Discounts

Purchasers of eligible energy-efficient vehicles can enjoy further rate discounts, making environmentally friendly choices more financially viable.

Convenient Loan Management

Manage your loan conveniently through the CommBank app or NetBank, making tracking and repayments seamless and stress-free.

Who Should Consider a Secured Personal Loan?

Not every borrower needs a secured loan, but for some, it can be a strategic financial tool. Heres who might benefit most from this type of loan:

Individuals needing to finance a car purchase without the need for perfect credit history (negativado).
Borrowers seeking lower interest rates due to asset-backed security.
Customers interested in purchasing energy-efficient vehicles for reduced rates.
Those seeking flexible repayment schedules and the ability to make additional payments without penalties.

Ultimately, if you are considering significant expenditures and have access to a qualifying vehicle, a secured personal loan can offer you advantageous terms.

Pros and Cons of the Secured Personal Loan

Every loan product has its strengths and trade-offs. Understanding these is essential in making an informed decision.

Pros

Lower Interest Rates
Securing a loan with a car typically results in lower interest rates compared to unsecured personal loans.
Repayment Flexibility
Options for weekly, fortnightly, or monthly payments and additional repayments without fees offer flexibility.
Potential Rate Discounts
Purchasing an energy-efficient vehicle can lead to additional rate discounts.
Convenient Management
The ability to manage your loan online or through an app adds convenience to borrowers busy lives.

Cons

Risk of Losing the Asset
If repayments are missed, theres a risk that the bank will claim the car used as collateral.
Asset Requirement
Borrowers must have a suitable vehicle, limiting accessibility to those without existing assets.
Limited Vehicle Types
Only certain vehicles qualify, excluding options like motorbikes and commercial vehicles.
Loan Term Restriction
Loan terms are limited to under seven years, which may not suit all financial plans.

Why Livrus Recommends This Loan

At Livrus, we are committed to providing our readers with reliable, actionable financial advice, and the Secured Personal Loan from Commonwealth Bank aligns perfectly with our standards.

This loan product is designed with both the borrower and lender in mind, offering balanced features that cater to various needs.

Competitive interest rates make this loan more affordable for borrowers.
Repayment flexibility allows for personalized financial management.
The potential for additional rate discounts adds economic value, especially for environmentally conscious individuals.

How to Apply for a Secured Personal Loan from Commonwealth Bank

Applying for a secured personal loan at Commonwealth Bank is straightforward, with multiple channels available for convenience.

Access the official website

Phone: Reach out via the Commonwealth Bank general customer service number.
Online: Apply or inquire through the Commonwealth Bank website.
In person: Visit your nearest Commonwealth Bank branch.
Via App: Use the CommBank app for applications and management.

Frequently Asked Questions

What vehicles qualify for this loan?

Only cars can be used to secure the loan; other vehicle types like caravans and bikes do not qualify.

Can those with poor credit history (negativado) apply?

Yes, as long as you have a qualifying vehicle to use as security, poor credit history will not automatically disqualify you.

What happens if I miss repayments?

The bank may reclaim the vehicle used as collateral if repayments are not met.

Is there a penalty for extra repayments?

No, borrowers can make additional repayments without any penalties.

Final Considerations

The Secured Personal Loan from Commonwealth Bank offers a blend of competitive interest rates, flexible repayment options, and the opportunity for savings with energy-efficient vehicle purchases.

For those with qualifying collateral, this loan offers a feasible and reliable financial solution. As always, Livrus encourages you to assess your financial situation thoroughly before committing to any loan product.