Small lenders offering some of the cheapest personal loans

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Endeavour Mutual Bank is offering a personal loan from as low as 4.24 per cent – but there’s a catch.

The Term Deposit Secured Loan, which has an advertised rate of 4.24 per cent and a comparison rate of 4.44 per cent, is available only to borrowers who secure their entire loan with cash.

So you can’t take out a personal loan for, say, $10,000 without also putting $10,000 into a term deposit. At the moment, Endeavour Mutual Bank is paying up to 2.70 per cent interest for its term deposits.

Meanwhile, at the end of February, the average interest rate for all the personal loans listed on was 11.90 per cent. The average application fee was $175.

Endeavour Mutual Bank has the lowest-rate personal loan listed on RateCity. Other low-rate options include:

Lender Product Advertised rate Comparison rate
Heritage Bank Low Rate Secured Loan 5.14% 7.61%
360 Finance Leisure Finance 5.49% 6.36%
G&C Mutual Bank Fair Rate Personal Loan Diamond 5.99% 6.20%
Credit Union SA Special Fixed Rate Personal Loan 5.99% 6.26%
Community First Credit Union Home Improvement Loan 6.12% 6.39%

It’s important to note that the cheapest personal loan won’t always be the best personal loan for all borrowers.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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