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).
|Lender||Product||Advertised rate||Comparison rate|
|G&C Mutual Bank||Fair Rate Personal Loan Diamond||5.99%||6.20%|
|Community First Credit Union||Green Loan||6.12%||6.39%|
|First Option Bank||VIP Personal Loan||6.44%||6.68%|
|Police Bank||Green Loan||6.49%||6.63%|
|Queensland Country Credit Union||Reno Loan||6.79%||7.31%|
|IMB Bank||Secured Personal Loan||6.89%||7.24%|
|Greater Bank||Secured Personal Loan||6.89%||7.28%|
|Auswide Bank||Home Renovation Improvement Loan||6.90%||7.55%|
|Regional Australia Bank||Enviro Loan||6.95%||7.83%|
|Hunter United||Green Personal Loan||6.99%||8.36%|
Please note that personal loans with the lowest interest rates aren’t necessarily the best personal loans for all borrowers.