Finty
RACQ Bank

RACQ Bank Commercial Loan Interest Only

Term loan

Our Commercial Loan (IO) is a variable rate loan for commercial purposes.

Written byDavid Boyd
Interest rate a year, from
10.27%
Establishment fee
$1,100
Monthly fee
Not published
Borrow
From $20,000

Monthly repayment

$100,000 over 5 years

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What it would cost

At the lowest published rate of 10.27%. The rate you are offered depends on your business, and the establishment fee is not included.

Monthly repayment
$2,138
Total repayments
$128,281
Interest
$28,281

Loan details

Rates

Interest rate (a year)
10.27%–11.27%
Rate type
Variable
Security
Not published
Type of finance
Term loan

Limits and fees

Loan amount
From $20,000
Loan term
Not published
Establishment fee
$1,100
Monthly fee
Not published

How it compares

Against the other business loans we compare. Typical means the middle half of them.

Cost of $20,000 over 5 years

$6,756

Interest and fees at its starting rate. Typical is $4,473.

Setup fee

$1,100

A typical setup fee is $26.

Pros and cons

Pros

  • No early repayment fee listed. You can pay the loan off early, or refinance, without a penalty. Check the terms to be sure.

Cons

  • Your rate isn't known until you apply. It's set by your credit history and finances, anywhere from 10.27% to 11.27%, and only some people get the starting rate.
  • A higher setup fee. $1,100, above the typical $26. It's usually added to the loan, so you pay interest on it too.
  • A variable rate. Your repayments can rise if the lender lifts its rate, though they can also fall.

Similar loans

Business loans of the same kind from other lenders that start at a similar interest rate.