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Personal loan rates and fees trending upwards

Personal loan rates and fees trending upwards

Personal loan interest rates have climbed over the past year, although it’s still possible to get loans for under 6 per cent.

The average advertised interest rate of all the personal loans listed on RateCity, at the end of December 2018, was 12.10 per cent.

That compares to an average rate of 11.89 per cent at the end of December 2017.

Meanwhile, the average application fee rose from $169.00 to $179.40 during that time.

For borrowers looking for some of the cheapest personal loans in Australia, G&C Mutual Bank is offering an advertised rate of 5.99 per cent and a comparison rate of 6.20 per cent (see table below).

Community First Credit Union, First Option Bank and Police Bank have personal loans priced under 6.50 per cent.

Queensland Country Credit Union, IMB Bank, Greater Bank, Auswide Bank, Regional Australia Bank and Hunter United have personal loans with interest rates under 7 per cent.

LenderProductAdvertised rateComparison rate
G&C Mutual BankFair Rate Personal Loan Diamond5.99%6.20%
Community First Credit UnionGreen Loan6.12%6.39%
First Option BankVIP Personal Loan6.44%6.68%
Police BankGreen Loan6.49%6.63%
Queensland Country Credit UnionReno Loan6.79%7.31%
IMB BankSecured Personal Loan6.89%7.24%
Greater BankSecured Personal Loan6.89%7.28%
Auswide BankHome Renovation Improvement Loan6.90%7.55%
Regional Australia BankEnviro Loan6.95%7.83%
Hunter UnitedGreen Personal Loan6.99%8.36%

Please note that personal loans with the lowest interest rates aren’t necessarily the best personal loans for all borrowers.

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This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.

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