Credit unions lead the way for low interest rates

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)

Please note that the cheapest personal loans aren’t necessarily the best personal loans.

Compare personal loans