Customised Average Rate Loan (CARL)

A CARL is a tailored solution that’s designed to offer flexibility and convenience to manage your funding needs and interest rate risk. If your total lending is more than $1 million, a CARL might be suitable for you. 

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How a CARL works

A CARL can be viewed as many loans in one. It gives you the option to divide the principal (total) of your loan into portions. Each portion can be allocated a different interest rate, which helps you manage your risk.

Because these portions sit under one loan facility, you’ll only have one periodic interest payment. The payment amount will be the weighted average of your various interest rates for each portion. Drawdown and repayment dates are flexible and interest payment periods are usually monthly or quarterly and can be on dates that best suit your business cash flow cycles. 

A CARL can be made up of these interest rate portions:

  • Floating portion – the interest rate goes up or down as interest rates in the market change
  • Fixed portions – the interest rate remains the same of an agreed period.

About a CARL

You can view and manage your CARL online with Internet Banking for Business. Learn more about CARL’s features and how to manage your CARL online.

Work with a specialist

Our specialists have the latest market information on interest rates. They can work with you face-to-face or over the phone, to structure your CARL in a way that works best for you.