Division 7A example
$100,000 Division 7A Loan Repayment Example
Minimum yearly repayment on a $100,000 unsecured Division 7A loan for 2025-26, using the 8.37% benchmark rate and a 7-year term.
2025-26 Unsecured 7-year term
Full loan breakdown
| Loan amount | $100,000 |
|---|---|
| Loan type | Unsecured |
| Loan term | 7 years |
| Benchmark rate | 8.37% |
| Minimum yearly repayment | $19,451 |
| Interest component (year 1) | $8,370 |
| Principal component (year 1) | $11,081 |
| Closing balance after year 1 | $88,919 |
Why this example matters
Division 7A requires the minimum repayment to be made by 30 June each year. If the repayment is missed, the shortfall can be treated as an unfranked deemed dividend rather than a simple loan shortfall.
Compare nearby loan sizes: $50,000, $100,000, $200,000, and $500,000. Need a custom result? Use the Division 7A Calculator to change the loan amount, loan type, and financial year.