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How We Calculate a Personalised
Interest Rate
For Your Student Loan

Your goals aren’t standard. Your course isn’t either. So why should your student loan be?

At Spark Finance, we personalise your interest rate based on who you are and where you’re headed. Unlike a standard personal loan from a bank, where a single rate is applied regardless of your circumstances, our education loan is structured around your individual financial situation, your chosen field of study, and your future career trajectory.

No one-size-fits-all offers – just fair, flexible student loans designed to support your journey, not hold you back.

Why We Offer Personalised Interest Rates

Every student’s path is different, which is why we base interest rates in your individual situation.

Your story matters

We look beyond your credit score to understand your full financial picture.

We’re future-focused

Your career goals play a role, not just your current financial and employment status.

We are flexible

Whether you’re local or international, we tailor rates to suit your needs.

Loans That Don’t require a Cosigner (if you meet the assessment criteria):

How Your Rate is Determined

At Spark Finance, your personalised interest rate is based on a complete picture of your personal and financial circumstances, study plans, and career aspirations. Unlike lenders who focus solely on credit scores, our unique underwriting model also considers your potential post-study employment outcomes and earning capacity – a forward looking approach that ensures you receive a rate tailored to your future success.

Students Profile

Cosigners Profile

Credit History

How you have managed borrowing and repayments in the past, including your credit score and any defaults.

Current Financial Situation

Income, expenses, liquid assets and debt are considered to determine repayment ability.

Future Earning Potential 

Expected occupation and income growth based on your educational program and career plan, to inform long-term risk and repayment ability.

How Interest Is Calculated on Your Education Loan

Interest works differently depending on your loan type and whether you’re studying or have finished your course.

For some loans, we offer a grace period of up to 2 years. During this window, students aren’t expected to make active repayments, giving you space to focus on your studies. Simple interest is charged on the original loan amount during this period to help minimise loan growth.

After you graduate and move into your active repayment phase, compound interest applies.

What Does This Mean?

  • Simple interest means that interest is calculated only on the original loan amount (the principal), not on any previously accrued interest. This means your loan balance grows more slowly over time and interest costs stay predictable and easier to manage.
  • Compound interest is calculated on your total loan balance – including any interest that has already accumulated. This means your loan balance can grow faster, particularly if repayments are low or paused. 

Sample Interest Rate Scenarios

The table below provides example scenarios that show how factors such as student type, degree level and cosigner can influence your overall loan assessment and personalised APR.

While these scenarios give an idea of what our rates may look like, they are only examples. We also consider factors such as your intended career path, and we support a wide range of degrees and institutions in many countries beyond those listed here in these scenarios. 

Please note: The interest rates shown are representative of our loan offers as at December 2025. Rates are indicative only and may change over time or following assessment of your application.

Borrowers Profile

Aussie Master’s Student Abroad

Aussie Bachelor’s Student Abroad

International Student Studying in Australia

Loan Type

ANZ Postgraduate Loan

ANZ Undergraduate Loan

International Student Loan (with Cosigner)

Loan Purpose

MSc in the UK

BSc in the US

MSc in Australia

Cosigner Requirement

Indicative APR*

14.73%

14.37%

15.92%

Grace Period

Up to 2 years (no active repayments)

Repayments begin at first loan drawdown (or first tuition payment).

Repayments begin at first loan drawdown (or first tuition payment).

Notes

Interest rate is primarily influenced by the student’s employment status, credit history, cash flow position, and chosen university and degree.

Interest rate is primarily influenced by the student’s chosen university and degree, along with the cosigner’s credit history and cash flow position

Interest rate is primarily influenced by the student’s chosen university and degree, along with the cosigner’s credit history and cash flow position.

How to Improve Your Rate

Taking these steps can improve your chances of securing a lower rate. This approach ensures rates stay fair and genuinely reflect your real circumstances.

Keep a strong credit record

Pay all bills and loan repayments on time. A history of reliable payments shows financial responsibility.

Submit complete documents

Ensure all financial and personal information is accurate, up to date and easy to read when you apply.

Show your capacity to repay

Provide proof of income, savings, or a simple budget. This helps demonstrate that you can comfortably manage the loan.

Apply with a strong cosigner

A cosigner with steady income and a good credit history can help you access a lower rate and increase your likelihood of approval.

When You’ll find Out Your Rate

We don’t display interest rates before you apply because your rate is personalised.

Your rate is calculated based on your individual personal and financial details.

After we review your application, we’ll send you a loan offer with your personalised rate.

You’re never locked in – you only accept the offer if it works for you.

Contact

info@sparkfinance.com.au

Sydney, Australia

Monday-Friday: 9am-5pm

(02) 8080 2104

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© Spark Finance Group Pty Ltd

Spark Finance Group Pty Ltd ACN 632 194 855 holds Australian Credit Licence (ACL) 520712 and is a member of the Australian Financial Complaints Authority (AFCA)

Disclaimer 

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. You must consider whether a Spark Finance Student Loan is appropriate for your circumstances and needs. If necessary, seek your own professional advice. Credit criteria, fees, charges, terms and conditions apply. Information correct as at December 2023