A host of smaller lenders are fighting for market share with some of the cheapest personal loans in Australia.
Two credit unions – Catalyst Money and Illawarra Credit Union – offer interest rates starting from 5.25 per cent (comparison rate 5.89 per cent) for a $10,000 personal loan over three years (see table below).
An online-only provider, 360 Finance, has personal loan interest rates from as low as 5.49 per cent (comparison rate 6.36 per cent).
Two other lenders have personal loans starting from 5.99 per cent – G&C Mutual Bank (comparison rate 6.20 per cent) and Credit Union SA (comparison rate 6.26 per cent).
|Lender||Product||Advertised rate||Comparison rate||Total repayment*|
|Catalyst Money||Online Personal Loan Package||5.25%||5.89%||$10,830|
|Illawarra Credit Union||Online Personal Loan Package||5.25%||5.89%||$10,830|
|360 Finance||Leisure Finance||5.49%||6.36%||$10,869|
|G&C Mutual Bank||Fair Rate Personal Loan Diamond||5.99%||6.20%||$10,950|
|Credit Union SA||Special Fixed Rate Personal Loan||5.99%||6.26%||$10,950|
|Community First Credit Union||Home Improvement Loan||6.12%||6.39%||$10,971|
|Cairns Penny||Secured Loan||6.25%||12.07%||$10,993|
|Police Bank||Green Loan||6.49%||6.63%||$11,032|
|Newcastle Permanent Building Society||Personal Loan Secured||6.69%||8.41%||$11,065|
|Queensland Country Credit Union||Reno Loan||6.79%||7.31%||$11,081|
* Total repayment has been calculated on a $10,000 loan, with no fees, over three years. The repayments would be higher once fees were added.
Please note that the personal loans with the lowest interest rates aren’t necessarily the best personal loans for each borrower. Also, some borrowers won’t be able to qualify for a particular lender’s lowest-rate personal loans.