Credit unions lead the way for low interest rates



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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.

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^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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