Compare some of Australia's best personal loan rates
Compare some of the best personal loans from a wide range of Australian lenders. Compare interest rates, repayments, fees and more.
Find and compare Australia's best personal loans
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Fixed up to 17.95%
1.5 years to 7 years
Make the most of this unsecured personal loan's competitive interest rate with no fees for extra repayments.
1 year to 5 years
An unsecured personal loan with a competitive interest rate and no ongoing or extra repayments fees, giving you the flexibility to pay it off faster.
Fixed up to 8.99%
3 years to 5 years
Enjoy lower rates and no early repayment fees with this 2020 RateCity Personal Loan Gold Award Winner.
Fixed up to 19.49%
1 year to 7 years
Be rewarded for your excellent credit rating with this competitive fixed rate personal loan offering fast funding and flexible repayments.
Fixed up to 10.49%
3 years to 7 years
Variable up to 9.99%
1 year to 7 years
1 year to 10 years
1 year to 7 years
Fixed up to 9.49%
2 years to 3 years
Fixed up to 8.5%
1 year to 7 years
1 year to 7 years
0 year to 7 years
1 year to 7 years
1 year to 7 years
Learn more about personal loans
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How do you find the best personal loan?
When it comes to choosing financial products, the best one will always depend upon your personal circumstances. There is no standard ‘best’ product for everyone, but there are a few things you can do to choose the best one for you.
Identify why you need a personal loan
Before you begin researching the best personal loan for you, it’s important to think about what you need it for, why you need it and how you want to access the funds. A personal loan has a fixed term over which you will need to repay the debt in structured repayments. Interest will be charged on the debt depending on a variable or fixed interest rate.
What can you use a personal loan for?
There are a range of different loan purposes that may be considered for a personal loan, including:
- Student loans
- IT Equipment
- Visa Applications
- Debt consolidation, and much more.
The funds for a personal loan are released all at once, so if you are a frivolous spender or undisciplined saver this may not be the best option for you. However, if you have a large purchase or debt that you need to pay off at once, then a personal loan could work for you.
If you are looking to buy a car, for example, a car loan is a type of personal loan that could help you make your purchase when you don't have the total cost of the car upfront.
If you are indebted to multiple lenders, a debt consolidation loan could be a possible option for you. By combining your loans into one personal loan, you could save money on interest charges and manage your repayments more easily.
Personal loans vs. line of credit and overdrafts
Standard personal loans differ from lines of credit and overdrafts in the way they are repaid. Personal loans provide all the funds at once, in a single lump sum, and have a fixed loan term. Line of credit loans and overdrafts however, are more flexible in how you borrow and withdraw your funds, up to a maximum loan amount. Instead of receiving the funds in a lump sum, you can access funds with lines of credit and overdrafts as you need it up to your credit limit.
Is a line of credit a type of personal loan?
A line of credit is a type of personal loan, where you can access money up to a maximum loan amount. You don’t need to reapply to withdraw money, and you're only charged interest on the amount you borrow.
Is an overdraft a personal loan?
Overdrafts can either come as part and parcel of a savings or transaction bank account that you have opened, or you can apply for one separately. An overdraft is not a personal loan as such, but shares some features with a personal loan. Overdrafts can be a simple way to access extra money, but you can be charged hefty fees for the convenience.
Similar to a credit card, line of credit loans and overdrafts can provide a flexible, ongoing source of funds. These loans may be better options for disciplined spenders, but if you’re looking to make larger repayments in a more structured manner, a standard personal loan may be a better option.
Which type of personal loan is best?
Personal loans vary in a number of ways. However, the main differences are in how interest is charged and whether the loan is secured.
Fixed vs variable rate personal loans
- Fixed interest rate: personal loans with fixed rates charge the same interest rate for the length of the loan. That means you agree to pay a set amount of interest as part of the loan repayments each month. Regardless of whether your lender changes interest rates, your repayments will stay the same. This can be appealing as it keeps your expenses certain and makes budgeting easier. However, you could miss out on savings if your lender reduces their variable rates.
- Variable interest rate: personal loans with variable interest rates mean your repayments could change at any time. You could save money with a variable rate personal loan if there’s a rate cut, as your interest costs and repayments will fall. However, if your bank or lender raises their rates, you could be left out of pocket.
Secured vs unsecured personal loans
A secured loan has collateral as security on the loan, whereas an unsecured loan does not.
- Secured loans: with a secured personal loan, your financier will ask you to insure the loan using an asset that you own. This asset will be used to cover the personal loan amount if you default on your repayments.
- Unsecured loans: an unsecured loan is not secured by an asset, and so it represents a greater risk to your lender. With no insurance on your loan, they cannot recover their losses if you fail to meet your repayments.
Lenders typically charge higher interest rates on unsecured personal loans in order to reduce the lender’s financial risk. These types of loans come with strict criteria, to ensure borrowers can meet their repayments.
If you're considering a variable rate personal loan and have a strict budget, it's generally considered wise to budget for a rate rise of up to 3 percentage points to ensure that you can afford repayments.
How do you apply for a personal loan?
Applying for a personal loan can be as simple as an online application. However, every loan application you are rejected from will negatively impact your credit history. That’s why it’s important to check a few things before you fill out any personal loan application form.
What documentation do you need for your application?
To get a personal loan, you will need to show your lender:
- Driver’s license or passport to prove your identity
- Bank statements or utility bills to prove your address
- Income statements or pay slips, to prove your income
- Bank or credit card statements to show your spending habits
- Recent tax returns or financial documents
- Details of current outstanding debt
Make sure you can afford your repayments
Personal loans have lower interest rates than other lending methods like credit cards. However, it’s important you check that you can afford the repayments. RateCity's Personal Loan Marketplace and Personal Loan Calculator were built with you in mind, to provide you with personalised search results and repayment estimates.
Check both the interest rate and the comparison rate
Shopping around and making personal loan comparisons is a key part of the process. There are dozens of loan providers in Australia, and you shouldn't assume your current bank or financial institution will offer you the lowest interest rate or the best deal.
When you begin to compare the best personal loan for you, you need to check both the advertised rate and the comparison rate. The comparison rate combines a loan's advertised interest rate with its standard fees and charges, giving you a more accurate idea of the overall cost of the loan. Be sure to watch out for any extra fees and charges that aren’t included in the comparison rate. You should ask your preferred lender whether any of these apply.
Check the fees and charges
Just as with all financial loans, lenders charge a number of fees to ensure they reduce their financial risk. They are taking a risk by lending you a large sum of money, and as such they need to charge these to protect their investment. It's important to take any applicable fees and charges into account when doing your calculations as they can really add up over the life of the loan.
Personal loans can come with ongoing fees and other charges that include:
- Application fees
- Establishment fees
- Account keeping monthly fees
- Extra repayment fees
- Early repayment fees or exit fees
- Administrative fees
- Late payment fees
- Redraw fees
How to find the top personal loans for you on RateCity
Finding the most suitable personal loan for you isn't just about looking for low interest rates. There are also a number of other factors to consider when deciding which loan is right for you.
To simplify the process, you might like to utilise RateCity's personal loan comparison table to narrow down your search results to the loans that best fit your requirements. Use the filter to search for specific lenders, features such as redraw facilities, or security type. Then, select your borrow amount, preferred loan term and apply your credit score.
Once you have your personalised search results and you’ve made a shortlist of your preferred finance options, consider checking available documentation, such as the Product Disclosure Statement (PDS), so that you can make an educated decision before beginning the application process.
RateCity's Real Time Ratings may also assist with your search by ranking personal loans based on your individual lending requirements. The rating system gives each personal loan on the database a score out of five stars, based on loan costs and flexibility. It also takes into consideration your preferred loan size, loan term, borrowing purpose and security type, so you don’t waste time comparing loans that won't work for you.
When you’re comparing personal loans, look at ALL the associated fees and costs by reading the key facts and figures sheet for the product, and the product disclosure statement (PDS). Every loan is different, so you need to make sure you look at all fees and charges before signing on the dotted line.
For information specific to your personal financial situation, consider talking to a financial advisor.
Business Finance Writer
Rachel Wastell is an award-winning writer with a knack for translating complicated subjects. She is a strong environmental advocate, and is as passionate about the planet as she is about finance and open education. Writing professionally for almost ten years, Rachel's work has been published across the Australian media landscape including the Australian Financial Review and The Guardian, and she regularly contributes to Business Insider and Lifehacker.