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Variable up to 7.49%

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Variable up to 9.16%

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Total repayments for a 3-year, $30,000 loan at 5.44%* would be $32,582*. Terms from 1-3 years

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Learn more about personal loans

Cheap personal loans*

For many borrowers seeking personal loans, the question that's ultimately at the back of their mind is "what's the cheapest?"

When looking for the cheapest personal loan, you should compare:

  • Interest rates
  • Features
  • Fees and charges

This will help you to work out which lenders will cover your expenses or consolidate your debts without costing more than you can afford. By looking at the features and benefits offered by different lenders, you can work out which cheap personal loans can provide the greatest value for your money.


What is a cheap personal loan rate?

If you're specifically hunting for a cheap interest rate, you may want to look for one that is lower than average. This means a cheap personal loan rate could be 11 per cent or under.

However, it is important to remember that you don't just pay interest on a personal loan - there are usually fees and charges involved as well, which can make a big difference to a loan's total cost. A low interest personal loan with high fees may cost more overall than a higher-interest personal loan with cheaper fees and charges.

Review comparison rates to find cheaper deals

One simple way to work out the approximate cost of different personal loans is to look at their comparison rates.

The personal loan comparison rate percentage figure combines a personal loan's advertised interest rate with its standard fees and charges, and can be used to help narrow down your shortlist of cheap personal loan options.

Keep in mind that some personal loans may also include nonstandard fees and other costs that aren't included in its comparison rate. Also, to make sure you get great value from your personal loan as well as a cheap deal, check what extra features and benefits are offered by each lender.

How can I work out how much a personal loan will cost?

Before you apply for a personal loan, it’s important to figure out how much it will set you back once interest charges and other fees are added onto your loan amount.

To make things easy, you might like to utilise RateCity’s personal loan calculator. By entering in information such as your preferred loan amount, loan term and interest rate, the personal loan calculator can estimate your potential weekly, fortnightly or monthly repayments, as well as interest payable and the total cost over the life of the loan.

Having an understanding of what the total amount payable might be will allow you to make a more informed decision when choosing a suitable loan.

What to look for in a cheap personal loan

When looking for a cheap personal loan, the main thing that will cost you in the long run is the extra interest you'll need to pay back to your lender, so it's worth looking for a personal loan with a low interest rate if possible.

Other costs to look out for that will determine whether your loan is the cheapest on the market for your financial needs are fees and charges, including:

  • Loan approval fee
  • Establishment fee
  • Annual fee
  • Administration fee
  • Late payment fee
  • Early Repayment Fee
  • Default fee

Staying on top of your personal loan repayments is key to avoiding a lot of these major fees. However, you should always compare fees across your chosen cheapest personal loans, as there are loans that don't charge upfront, annual and/or administration fees.

Fixed and variable interest rates

The next step for finding the cheapest personal loan rates is to work out whether you'd prefer your personal loan to have a fixed or variable interest rate.

A fixed interest rate is set by your lender at the start of your personal loan term, and remains the same for the duration of your loan. This keeps your repayments the same for the entire term of your personal loan, and if these are cheap enough for you to easily afford, then organising your monthly budget should stay nice and simple.

A variable interest rate, on the other hand, may be adjusted by your lender over the term of your personal loan, to better suit the current economic conditions. It's possible that a rate cut could lower your repayments, providing you with an even cheaper deal on your personal loan. However, interest rate rises could make your initially cheap personal loan repayments much more expensive, so consider your options in relation to your financial situation.

Redraw facility

Does your cheap personal loan allow you to easily make extra repayments and get ahead on your loan? That's great! Why not take this opportunity to add your spare cash to your personal loan and get it paid off as quickly as possible?

If you're concerned that this could possibly leave you short of spare cash for emergencies where you could really need it, it may be worth considering a personal loan that offers a redraw facility.

When you get ahead in paying off one of these personal loans, the redraw facility will allow you to withdraw the surplus funds, subject to your lender's terms and conditions, so you can enjoy greater financial flexibility while bringing you closer to making an early exit from your personal loan.

100 per cent loans

What if you want a personal loan, but don't quite have enough money saved up for a full deposit?

Some lenders offer:

  • Personal loans with a high Loan to Value Ratio (LVR), where you pay a smaller deposit up front, and borrow a greater percentage of your loan's total value.
  • 100 per cent loans, where you pay no deposit at all, and instead borrow the full total.

Lenders typically consider these loans to be higher risks, and may charge higher interest rates as a result. Look at your finances and work out whether it would be cheaper to save up for a deposit, or to make higher monthly repayments on your personal loan.

Debt consolidation

If you're currently juggling repayments for multiple different debts, and struggling to manage their combined interest costs, taking out a low interest personal loan for debt consolidation could ultimately prove to be a cheaper option, as you'd be paying just the one rate of interest. Plus, making just the one repayment per month can help make managing your budget so much easier.

However, not every personal loan can be used for debt consolidation, so remember to check with the lender first.

Is it cheaper to pay off your personal loan early?

Short answer - yes, sometimes, though not always.

Longer answer - Making extra repayments onto a personal loan can help bring you closer to making an early exit from the loan. By completing your personal loan repayments ahead of the scheduled term, you may be able to ultimately pay less total interest on your loan, for a cheaper deal overall. So far, so good.

Things to consider when paying off your personal loan early:

  1. Some lenders will charge fees for making extra loan repayments or an early exit from your loan, to make up for the interest payments they'd be missing out on.
  2. These fees tend to be more common on fixed rate personal loans where you're expected to stick to a fixed repayment schedule, though they are sometimes present in variable rate loan deals too.
  3. Check your personal loan's terms and conditions, in case paying it off early ends up costing you more than you expected.

Secured or unsecured personal loans: what's cheaper?

On average, secured personal loans are the cheaper or more cost-effective choice. If you already own a car, or have equity in property, you may be able to guarantee your personal loan against the value of your asset. These secured personal often have lower interest rates due to their reduced lender risk, allowing you to enjoy cheaper loan repayments.

If you don't have access to an asset with enough value to secure your personal loan, or if you'd rather not risk potentially losing your asset if you're unable to make your loan repayments, there is the option of an unsecured personal loan.

As these loans tend to involve greater lender risk, they're more likely to have higher interest rates, resulting in more expensive repayments.

Are there 'no credit check' personal loans in Australia?

If you apply for a personal loan with a major lender such as Commbank, you can expect to undergo a credit history check. For those with bad credit this can be a daunting experience, especially as having a loan application rejected can negatively impact your credit score.

Having bad credit shouldn't stop you from finding a cheap personal loan. There are a variety personal loans available that involve no credit check.

Where to find no credit check personal loans in Australia:

  1. Payday loans
  2. Peer-to-peer loans
  3. Secured no credit check personal loans
  4. Unsecured no credit check personal loan

However, you must consider the disadvantages of these types of loans, including higher interest rates and fees. For no credit check personal loan options like payday loans, it just takes one missed repayment to find yourself up to your neck in huge penalty fees, putting you in financial trouble.

Compare cheap personal loans

The cheapest personal loan isn't always the personal loan that provides you with the most value, so before making your final decision, it's worth comparing the personal loan offers from several different lenders at RateCity, and then work out whether you're comfortable with repayments using a personal loans calculator.

Once you find a personal loan that costs you less money, while providing you with features and benefits that suit your financial situation, you'll be well on your way towards fulfilling those personal goals of yours.

*The phrase 'some of the cheapest' is not a recommendation or rating of products. This page compares a range of home loans from selected providers, not all products or providers are included in the comparison. No home loan is one size fits all. The best home loan for you will not be the best home loan for someone else. As a result, it's worth getting advice on whether a product is right for you before committing.

Frequently asked questions

Can you refinance a $5000 personal loan?

Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

Is a personal loan a variable or fixed-rate loan?

Depending on the personal loan lender, you may be able to choose between a fixed and a variable interest rate. But, there are a few distinct differences between the two, so it’s important to weigh up the pros and cons before deciding on what’s right for you.

A fixed interest rate loan gets you the convenience of knowing exactly how much you need to repay each fortnight or month. On the other hand, you generally won’t be able to make lump sum or advanced payments to close your personal loan early - or at least not without a penalty.

With a variable interest rate personal loan, you may be able to get a longer loan repayment term, with the option of paying off the loan early. You typically won’t need to pay any additional charges for an early full repayment either. The potential disadvantage with an interest rate that can change is that your repayment is not entirely predictable, as it can fluctuate with the market. However, you’ll likely have more options as more lenders offer a variable interest rate personal loan.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.

Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.

Can I merge my personal loan with my home loan?

Yes, you can refinance your home loan and, in the process, merge or consolidate your personal loan and home loan. By doing so, you can lower the number of debts you have, and you may also reduce the total interest you have to pay.

However, you should consult a financial advisor or a mortgage broker to confirm that you are decreasing your total outstanding debt, including interest payments. The repayment term for a home loan can be much longer than that for a personal loan, and by merging the two, you could be repaying a higher amount over the full term.

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

Does refinancing a personal loan hurt your credit score?

Personal loan refinancing means taking out a new loan with more desirable terms in order to access a more competitive interest rate, longer loan term, better features, or even to consolidate debts.

In some situations, refinancing a personal loan can improve your credit score, while in others, it may have a negative impact. If you refinance multiple loans by consolidating these into one loan, it could improve your credit score as you’ll have only one outstanding debt liability. Your credit may also improve if you consistently pay the instalments on time.

However, applying to refinance with multiple lenders could negatively affect your credit if your applications are rejected. Also, if you delay or default the repayment, your credit score reduces.

How long does it take to get a student personal loan?

Completing an online personal loan application can often take anywhere from 10 minutes to 1 hour. Depending on your lender, processing your personal loan application may take anywhere between 1 and 24 hours. If your personal loan application is approved, you may receive the money in your bank account the following business day, or, in some cases, the same day.

Can unemployed single parents get personal loans?

It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments.

If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan options. Consider contacting the lender before applying.

How can I get a $3000 loan approved?

Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.

Can I get a bad credit personal loan with a guarantor?

Some lenders will consider personal loan applications from a borrower with bad credit if the borrower has a family member with good credit willing to guarantee the loan (a guarantor).

If the borrower fails to pay back their personal loan, it will be their guarantor’s responsibility to cover the repayments.

Can you pay off a quick loan early?

Many lenders will allow you to make extra repayments onto a quick personal loan when you can afford them, or even exit the loan early, which can help reduce the total interest you are charged. Be sure to check your quick loan’s terms and conditions, as some lenders charge early exit fees for paying off a loan ahead of schedule.

Is it hard to improve your credit score?

It can be hard to improve your credit score, as it usually requires sacrifice and discipline, but hard doesn’t necessarily mean complicated. Some simple ways you can give your credit score a boost include closing extra credit cards, reducing your credit card limit, pay off any loans and make loan repayments on time.

As a general rule, the lower your credit score, the more remedies you can apply and the greater the scope for improvement.

What can I use a bad credit personal loan for?

Generally, bad credit personal loans can be used for the following purposes:

  • Debt consolidation
  • Paying bills
  • Buying vehicles
  • Moving expenses
  • Holidays
  • Weddings
  • Education

Some lenders restrict how their bad credit personal loans can be used as part of their commitment to responsible lending – be sure to check before applying.

What documentation is needed for a self-employed personal loan?

Personal loans may require a borrower to provide proof of identity, proof of residence, details of any other outstanding loans (including credit cards), details of assets they own (e.g. savings, car, property), and proof of income.

While borrowers in full-time or part-time employment can often provide payslips and similar documents to prove their income, self-employed borrowers may need to provide other documents, such as bank statements or tax returns, to demonstrate that their income can cover a loan’s repayments.

Can I apply for a quick loan online?

While some lenders will require you to provide paperwork in person, many lenders will allow you to make an application for quick personal loan online. You’ll still need to provide information on your identity, income, and loan purpose in most cases.

Can I get a fast loan if I’m unemployed or on Centrelink?

Even if a lender has no credit checks, they will usually still need to confirm you can afford to repay a fast loan on your income before they’ll approve your application.

If 50% or more of your income comes from Centrelink payments, you may find it more difficult to have a fast loan application approved. Consider checking with the lender before applying to confirm if they lend to people on Centrelink.