A diverse range of small lenders is undercutting the big banks and offering some of the lowest-rate personal loans in Australia.
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.