Your Zip Personal Loan rewards you with a 1% p.a. interest rate reduction each year when you make all your repayments on time.
How the rate drop works
You may be eligible for a 1% p.a. interest rate reduction on your Zip Personal Loan each year if you meet the repayment requirements during your loan’s anniversary year.
Your progress is shown in the app, where you’ll see whether you’re on track, at risk, or ineligible.
Eligibility
To qualify for the 1% annual rate drop:
- You must make all minimum repayments by the due date each month
- This applies to all Zip accounts you hold, including:
- Zip Personal Loan
- Zip Pay
- Zip Plus
- Zip Money
- These conditions must be met for the full anniversary year
Your anniversary year begins on the date your Personal Loan funds are disbursed.
If you meet these conditions, the 1% reduction is applied to your variable interest rate on your loan anniversary each year.
Example
If your minimum monthly repayment is $250, and your loan was funded on 3 March 2025 with a 12.5% p.a. variable interest rate, you’ll need to make all minimum repayments of $250 (or more) on time each month through to February 2026.
If all repayments are made on time:
- On 3 March 2026, your interest rate will reduce to 11.5% p.a¹.
- Your minimum monthly repayment will remain $250
You can choose to make repayments weekly or fortnightly, as long as your minimum monthly repayment is met by each due date.
¹The interest rate on the Zip Personal Loan ranges between 11.99%p.a. to 21.99%p.a. T&Cs and credit approval criteria apply. A monthly account fee of $9.95 and one-off establishment fee of $199 will apply. Interest, fees and charges subject to change. Credit provided by ZipMoney Payments Pty Ltd (ABN 58 164 440 993), Australian Credit Licence Number 441878.