Personal Loan Rates From 3.15%
A personal loan is when you borrow money, which you'll repay plus interest in regular instalments over a set period (usually 3-5 years). Personal loans can be used to buy cars, consolidate debt, pay for holidays and more.
The minimum amount you can borrow with many personal loans is $1,000. The maximum amount you can borrow is often $50,000. With some personal loans, you may be able to borrow up to $100,000. There are even a few personal loans that will let you borrow a maximum of $300,000!
Simplify your budget by combining multiple smaller debts into one personal loan
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Compare interest rates, features and more to find some of the best personal loans for you
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ING Personal Loan
All rates shown are per annum. ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823.
Fixed Rate Personal Loan
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Unsecured Personal Loan - (Excellent Credit)
up to 16.95%
Unsecured Joint Personal Loan
1.5 years to 7 years
up to 9.99%
Unsecured Personal Loan - (Excellent Credit)
of loan amount
2 years to 3 years
Fixed Rate Personal Loan
2 years to 5 years
Unsecured Personal Loan (Excellent Credit Rating) (3 Years Term)
Discounted Personal Loan
1 year to 10 years
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What is an interest rate?
The interest rate is the percentage extra you’ll need to pay your lender with each loan repayment. When comparing personal loans, looking for the lowest personal loan interest rates is often a good way to start.
You won’t just be paying interest to your lender – personal loans often involve other fees and charges too.
What can I use a personal loan for?
When you’re making a personal loan comparison, it’s important to consider how you plan to use the loan.
Some of the types of personal loans that are available include:
- Personal loans for buying a car
- Personal loans for debt consolidation
- Personal loans for holidays
- Personal loans for weddings
- Personal loans for home renovation
- Personal loans for student fees
- Personal loans for hospital bills
- Personal loans for veterinary bills
- Personal loans for dental work
- Personal loans for cosmetic surgery
How do personal loans work?
After your personal loan application has been approved, you'll usually receive the money as one lump sum. You’ll need to pay this money back, plus interest, in weekly, fortnightly or monthly repayments.The main steps to get a personal loan are:
- Application: when you apply for a personal loan, you'll need to show proof of income, bank statements and personal identification. If you’re applying for a secured loan, you’ll also need to provide details of your security asset.
- Assessment: the lender will look at your personal finances to work out if you can afford the loan.
- Credit check: responsible Australian lenders perform credit checks whenever someone applies for a loan. These checks help lenders work out if you’re a responsible borrower. They may also help determine your personalised interest rate.
- Contract: once your application has been approved, you’ll be asked to sign a personal loan contract. This confirms the length of your loan, the type of loan, and that you understand the fees involved.
- Repayment: some personal loans will let you choose weekly, fortnightly or monthly repayments, to better suit your budget.
What types of personal loans are available?
Personal loans are available with fixed or variable interest rates. Fixed interest rates will stay the same, while variable rates may rise or fall. If your variable rate falls, you'll pay less interest with each repayment, but if rates rise, you'll pay more.
Fixed rates can make your budgeting simpler, as you’ll have the same rate for the whole loan. However, you may miss out on savings if variable rates fall.
Do you own a car, a property, or other valuable asset, and want to save on a personal loan? Using your asset to apply for a secured personal loan may let you enjoy a lower interest rate, as there’s less risk to the lender.
But if you don't own an asset that can secure a loan, or you don't want to risk losing your security if you can't afford the loan, unsecured personal loans are also available.
|Type of personal loan||What to consider|
|Fixed rate personal loan||
|Variable rate personal loan||
|Secured personal loan||
|Unsecured personal loan||
What interest rates and fees are involved with personal loans?
A personal loan with a low interest rate that charges high fees may turn out to be more expensive than a personal loan with a high interest rate and low fees.
Personal loan fees could include:
- Upfront costs – establishment fees or application fees
- Ongoing fees – annual fees and/or monthly fees
- Late payment fees – if you miss a payment
- Extra repayment fees – some lenders charge fees for paying more onto your loan
When you compare personal loans, check the comparison rate to get better idea of the loan’s total cost. The comparison rate combines a loan’s interest rate and standard charges into a single percentage.
However, a loan’s comparison rate may not include its nonstandard fees and other costs. It’s also important to look for value-adding extra features or benefits that could help you further narrow down your personal loan shortlist.
Compare personal loan rates in Australia
The best personal loan rates will change, as banks and other lenders adjust their personal loan offers. It's always wise to research your options by comparing personal loans to find the best for you.
Why should I compare personal loan rates?
Comparing interest rates is a quick way to work out which personal loans are the most affordable. But the best personal loan for you may not be the cheapest.
It’s important to also look at a personal loan’s fees, features and benefits to work out if it could suit your needs, now and in the future.
At RateCity, you can compare personal loan rates, features and benefits side by side, to make a more informed decision.
How much does a personal loan cost?
To work out your interest costs, it's a good idea to use a personal loan calculator. Check different repayment scenarios, with different interest rates, loan terms and loan amounts.
For example, here's how much a $20,000 personal loan might cost:
|Loan term||Interest rate||Monthly repayments||Total repayments|
You’ll also need to think about upfront and ongoing fees. Upfront fees can range from $0 to $700, while ongoing fees can range from $0 to $15 per month.
How do I choose the best personal loan?
When you compare personal loans, consider which of the following will best suit your financial situation:
- A variable or fixed interest rate
- A secured or unsecured car loan
- The length of your loan
- Whether you should apply for a bad credit personal loan
- Whether you will make extra repayments
- Whether you need a redraw facility
RateCity can help you quickly compare personal loan rates and how much time it will take to pay the loan back.
What personal loan term should I choose?
|Type of personal loan||Average length of loan||What to consider|
|Shorter term personal loan||Under 12 months||
|Typical personal loan||3 - 5 years||
|Longer term personal loan||7 - 10 years||
How can I pay off my personal loan early?
One way to pay off your personal loan sooner is to make extra repayments. This could mean paying a bit more than the minimum each month. It could also mean adding a lump sum onto your loan when you can afford it, such as when you get a tax refund.
Extra repayments can reduce the principal amount you owe. This can reduce your future interest charges and bring you closer to exiting your loan early.
However, some lenders charge fees for making extra repayments or exiting a loan early. These fees are more common for fixed rate personal loans, though they sometimes appear on variable rate personal loans too. Before exit a personal loan early, make sure this won’t cost you more than you expect.
Can I get a personal loan with a redraw facility?
Making extra repayments can help you get ahead on your personal loan, but may leave you short on savings in your bank account. If your money is tied up in a personal loan, you may struggle to afford car repairs, surprise medical bills, or urgent travel expenses.
With a personal loan redraw facility, you can withdraw your extra repayments, subject to terms and conditions. This can be handy if you want to pay less interest on your personal loan, but still want access to your money.
Keep in mind that not all personal loans come with redraw facilities, and those that do may charge extra fees.
Can I refinance a personal loan?
Even the best personal loan rates can change. If you find a more competitive personal loan, or you want to consolidate your debt, you could refinance your personal loan. To refinance a personal loan, follow these steps:
- Check your credit score, as it may have changed while paying off your existing loan
- Compare personal loans to find a more competitive option
- Calculate refinancing costs (break fees, application fees etc.)
- Apply for the new personal loan
- Ensure your old loan is paid off
You could refinance a personal loan to consolidate other debts. These could include outstanding credit cards, or even other personal loans. Debt consolidation can make your budget easier to manage, as you’ll have just one repayment to think about each month. Not every lender offers personal loans for debt consolidation, so check the terms and conditions first.
How do I apply for a personal loan?
To apply for a personal loan, most lenders will require that you:
- are at least 18 years old
- are an Australian citizen, permanent resident or have a valid visa
- are employed or receive regular income
- earn a minimum income (dependent on lender)
- have a good credit rating
When you make a personal loan application, you’ll typically need to provide:
- Proof of identity (driver’s licence, passport etc.)
- Proof of income and employment (payslips, tax information)
- Details of any other financial commitments
- Details of additional assets (particularly for secured loans)
Where can I get a personal loan with bad credit?
If you have a history of borrowing and repaying money on time, you should have a good credit score. But if you've had money trouble in the past, you may have a bad credit score.
If you have bad credit, or even fair credit, you may find it harder to get a personal loan. Some specialist lenders offer bad credit personal loans, but these loans often have higher interest rates and fees.
If you have bad credit and are struggling with debt, you can contact the National Debt Helpline on 1800 007 007 to speak with a free financial counsellor.
Which is the best bank for personal loans?
Personal loans are available from Australia’s big four banks (ANZ, Commonwealth Bank, Westpac or NAB) and smaller banks. You can also apply for personal loans from credit unions, mutual banks and peer to peer lenders.
The best choice for you will depend on your financial situation, personal needs and credit history.
It’s important to compare personal loans from different banks and other lenders before you apply. Look for a loan that you’re confident you can afford, and offers features that suit your needs.
A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.
Loan sizes usually range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.
Depending on the lender, some personal loan applications can be approved in as little as one hour, or you may need to wait until the next business day. If approved, you may receive your money on the same day, the next business day, or within the week.
Lenders aren’t allowed to charge interest on loans of $2,000 and under. Instead, they make their money by charging a one-off establishment fee of up to 20 per cent and a monthly account-keeping fee of up to four per cent. Lenders might also ask you to pay a government fee.
For loans between $2,001 and $5,000, lenders can make their money in only two ways: a one-off fee of $400 and annual interest rates of up to 48 per cent.
For loans of $5,001 and above, or for loans that have terms longer than two years, lenders can charge annual interest rates of up to 48 per cent. (Those fee caps don’t apply to loans offered by authorised deposit-taking institutions such as banks, building societies or credit unions – although such institutions are highly unlikely to charge interest rates of anywhere near 48 per cent.)
Personal lenders are regulated by ASIC (the Australian Securities & Investments Commission) and must follow responsible lending rules. That means they can’t lend money without making “reasonable inquiries” about a borrower’s financial situation and ensuring the loan is “not unsuitable” for them.
Mark Bristow is a senior financial writer for RateCity and an experienced analyst, researcher, and producer. Working for over ten years, Mark previously wrote and researched commercial real estate at CoreLogic, and has seen articles published at Lifehacker and Business Insider, among others. Most recently, Mark has joined RateCity working across finance as a whole. Whatever the topic, Mark’s goal is always to provide simple solutions to complex problems.