A diverse range of small lenders is undercutting the big banks and offering some of the lowest-rate personal loans in Australia.
When it comes to personal loan interest rates, ANZ, Commonwealth Bank, NAB and Westpac are being challenged by customer-owned institutions and non-bank lenders.
Catalyst Money and Illawarra Credit Union – which are both divisions of Community Alliance Credit Union – are offering personal loans with an advertised rate of 5.25 per cent and a comparison rate of 5.89 per cent (see table below).
Non-bank lender 360 Finance also has low-rate personal loans, with its Leisure Finance product priced at 5.49 per cent (comparison rate 6.36 per cent).
G&C Mutual Bank has an advertised rate of 5.99 per cent and a comparison rate of 6.20 per cent for its Fair Rate Personal Loan Diamond product.
By contrast, personal loan interest rates for the big four start from:
- ANZ 10.99 per cent (comparison rate 11.87 per cent)
- Commonwealth Bank 12.99 per cent (comparison rate 13.86 per cent)
- NAB 12.69 per cent (comparison rate 13.56 per cent)
- Westpac 12.99 per cent (comparison rate 14.14 per cent)
| Lender | Product | Advertised rate | Comparison rate |
|---|---|---|---|
| Catalyst Money | Online Personal Loan Package | 5.25% | 5.89% |
| Illawarra Credit Union | Online Personal Loan Package | 5.25% | 5.89% |
| 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% |
| Police Bank | Green Loan | 6.49% | 6.63% |
| Newcastle Permanent Building Society | Personal Loan – Secured | 6.69% | 8.41% |
| Queensland Country Credit Union | Reno Loan | 6.79% | 7.31% |
| Service One | Eco Personal Loan – Secured | 6.79% | 7.39% |
Please note that the cheapest personal loans aren’t necessarily the best personal loans.