Interest on personal loans

When you take out a personal loan, you’ll repay the loan amount plus a fixed interest rate. We calculate interest each day on the unpaid balance of your loan.

Your loan term can be between six months and seven years. You’ll be charged interest on the loan amount and repay that amount, plus the interest, in fixed repayments over the loan’s term. Each repayment includes:

  • principal (the amount you borrowed)
  • interest (what the bank charges you when you borrow money).

Your loan term can be between six months and seven years. Your repayments depend on how you set up your loan, including how long you’re borrowing the money for and how frequently you’ll make repayments. 

What is interest?

Interest is what you pay to borrow money from a lender, such as a bank. The interest rate is set during the application process and is expressed as a percentage e.g. % per annum (p.a.). 

How interest works on personal loans

When you take out an ANZ Personal Loan, you’ll have a structured repayment plan and a fixed interest rate. This means you’ll know how much interest you’ll pay and when you’ll be debt-free.

How interest is calculated

Interest is calculated each day on the unpaid balance of your loan, and is charged to the loan on the last business day of the month. The interest rate applied each day is equal to your annual interest rate, divided by 365.

While your repayments are fixed, the interest charged to your loan may be different each month. The exact amount depends on factors such as:

  • Number of days in the month
  • Interest rate
  • How much you’ve paid off already.

Your loan documents

Personal loan summary letter

Your loan summary letter outlines the new personal loan you’ve taken out with ANZ. It includes important information about the money you’re borrowing, such as the interest rate, your repayment plan, and more. 

Personal loan statement 

Loan statements provide a summary of the payments you’ve made within the statement period – usually every six months – and the interest that has been charged.

You’ll also see your closing balance for the period. The closing balance is the remaining principal balance (loan amount) still to be paid off, excluding interest yet to be charged.

You’ll receive a loan statement every six months. You can view your online statements in ANZ Internet Banking or your ANZ goMoney app.

More support

Important information

This is for information purposes only, talk to us for financial advice and see our advice statement.

ANZ lending criteria, terms and conditions apply. Interest rates and fees are subject to change. Read more about our Rates, fees and agreements. And view the ANZ Personal Loan Terms and Conditions (PDF 104KB) for more information.