Personal Loan rates from 3.65%
Compare personal loan interest rates, repayments, fees and more.
The lowest rate of 3.65% (comparison rate 4.59%) can be found in Australian Military Bank's Green Loan. Find out if you qualify.
Variable up to 7.99%
1 year to 7 years
Enjoy the flexibility of a variable-rate personal loan on a competitive interest rate.
Winner of Excellent credit personal loans, RateCity Gold Awards 2021
Fixed up to 9.39%
3 years to 5 years
Enjoy lower rates and no early repayment fees with this 2020 RateCity Personal Loan Gold Award Winner.
Fixed up to 9.49%
Sign up online for a personal loan with this digital marketplace lender, and pay no ongoing fees.
Fixed up to 8.99%
1 year to 5 years
An unsecured personal loan with a competitive interest rate and no ongoing or extra repayments fees, giving you the flexibility to pay it off faster.
Winner of Excellent credit personal loans, RateCity Gold Awards 2021
Fixed up to 8.5%
3 years to 5 years
Fixed up to 21.99%
1 year to 7 years
Fixed up to 17.95%
1.5 years to 7 years
Fixed up to 7.05%
1 year to 7 years
Winner of Excellent credit personal loans, RateCity Gold Awards 2021
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Latest in personal loan news
What's new in personal loans for January 2021
Many Aussies have kicked off the new year in better financial health than prior to the COVID-19 pandemic, according to new research, with personal loan payment deferrals playing a part in the improved result.
According to CBA’s Financial Wellbeing Scales research, between February 2020 (the start of the pandemic) and the end of November 2020, 52 per cent of the major bank’s customers saw an improvement in their financial situation, 24 per cent had no change, and a further 24 per cent saw their financial wellbeing decline.
CBA’s general manager of group financial wellbeing, Mo Khalil, said the latest research indicates Australians’ observed financial wellbeing “has increased from 47.2 points to 50.5 points between February and November 2020 – the largest increase we have seen since we began measuring in 2018”.
“This improvement is primarily driven by people spending much less than they earned over this period,” Mr Khalil said.
“While incomes did fall over this period, it would’ve been much worse if the short-term government support and one-off stimulus measures weren’t in place to support Australians.”
Furthermore, Mr Khalil said any fall in income was more than offset by large reductions in expenses over the same period as people spent much less during lockdown or used loan payment deferrals.
However, with JobKeeper payments cut early this month and scheduled to cease altogether at the end of March, many may see their income reduced as a result.
For those looking to prepare for a potential reduction to their pay packet, it might be worth considering consolidating existing debts. A debt consolidation personal loan will allow you to roll all your existing debts into one loan, simplifying your financial situation and potentially reducing the amount you’ll pay in account keeping fees and interest charges.
Updated by Georgia Brown on January 8, 2021
What is a personal loan?
A personal loan is when you borrow a fixed amount of money, which you repay with interest in regular instalments over a set period (usually 3-5 years). Common personal loan purposes include new car purchases, debt consolidation, 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.
What is an interest rate?
The interest rate is the percentage extra on top of your loan amount 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. A low rate is likely to help save you money in the long run.
You should also pay attention to the different comparison rates listed. A comparison rate bundles up the personal loan’s interest rate with certain fees into one percentage figure. This is to help you compare apples with apples when doing your research on the cost of the loan.
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
Simply put, personal loans can be used for all sorts of things, from helping to repair debt to paying school and university fees, legal costs, and even home improvement, improving your home's equity with extras such as solar panels, a pool, or even an electric battery to go off grid.
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. Unsecured loans may come with higher interest rates.
|Type of personal loan||What to consider|
|Fixed rate personal loan||
|Variable rate personal loan||
|Secured personal loan||
|Unsecured personal loan||
Can my credit score affect a personal loan?
As with most financial products, when it comes to taking out a personal loan, your credit score can affect your borrowing power, choice of lenders and the rates available to you.
If you have an excellent credit score, there will typically be more lenders who are inclined to lend you money. This is because borrowers with excellent credit scores have a history of responsible credit behaviour, and are thus less of a risk to the lender than those with bad credit scores.
Similarly, an excellent credit score can often unlock more competitive interest rates and more flexibility in terms of the loan amount you may be approved for.
Keep in mind, however, that there are a number of other factors that contribute to the success of a personal loan application. Consider the eligibility criteria of each individual product before applying.
Borrowers with bad credit may still be able to find a personal loan product that works for them. It’s also worth thinking about the steps you can take to improve your credit score, such as working on existing debts and building your savings.
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.
- Early repayment fees – some lenders charge fees for making additional repayments.
- Redraw fees – what you could be charged if you wish to access your extra repayments through a redraw facility. Not every personal loan has a redraw facility.
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.
Note that some lenders may waive certain fees from time to time as a promotional offer. You may need to satisfy certain conditions to qualify for the fee waiver.
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 are personal loan repayments?
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. Borrowing different amounts on different terms may result in different repayment amounts. RateCity's personal loan repayments calculator can help you understand how to benefit from the highest cost savings.
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 personal loan
- The length of your loan
- Whether you should apply for a bad credit personal loan
- Whether you will make additional 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.
Additional repayments can reduce the principal amount you owe. This may reduce your future interest charges, or the cost of the loan, and bring you closer to paying off 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 loans, though they sometimes appear on variable rate loans too. Before you pay off 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 (like a home loan redraw), 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 redraw 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. You should also make sure you satisfy your bank’s lending criteria before applying.
Senior Financial Writer
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.
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Frequently asked questions
Are there emergency loans with no credit checks?
While many personal loans require a credit check as part of the application process, some personal loans and payday loans have no credit checks, which may appeal to some borrowers with a bad credit score.
Keep in mind that even if a loan is available with no credit check, the lender will likely want to confirm that you can afford the repayments on your current income.
What is a bad credit personal loan?
A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.
Can you refinance a $5000 personal loan?
Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.
If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.
Should I get a fixed or variable personal loan?
Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.
A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.
What is a personal loan?
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 typically 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.
How much can you borrow with a bad credit personal loan?
Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.
What is the average interest rate on personal loans for single parents?
Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.
Can I repay a $3000 personal loan early?
If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.
Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.
How long does it take to get a student personal loan?
Completing an online personal loan application can often take anywhere from 10 minutes to 1 hour. Depending on your lender, processing your personal loan application may take anywhere between 1 and 24 hours. If your personal loan application is approved, you may receive the money in your bank account the following business day, or, in some cases, the same day.
How can I get a $3000 loan approved?
Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.
Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.
Can unemployed single parents get personal loans?
It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments.
If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan options. Consider contacting the lender before applying.
Can I get a bad credit personal loan with a guarantor?
Some lenders will consider personal loan applications from a borrower with bad credit if the borrower has a family member with good credit willing to guarantee the loan (a guarantor).
If the borrower fails to pay back their personal loan, it will be their guarantor’s responsibility to cover the repayments.
What do credit scores have to do with personal loan interest rates?
There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to help decide what interest rates to offer to potential borrowers.
If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate if you apply for a personal loan.
If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.
What is an unsecured bad credit personal loan?
A bad credit personal loan is ‘unsecured’ when the borrower doesn’t offer up an asset, such as a car or jewellery, as collateral or security. Lenders generally charge higher interest rates on unsecured loans than secured loans.
Do student personal loans require security?
While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, which typically have higher interest rates.
Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will fully or partially guarantee the loan, taking on the financial responsibility if the borrower defaults.
Are there low doc personal loans?
Self-employed borrowers may be eligible for low doc personal loans, which require less documentation in their application process than many other personal loan options.
It’s important to remember that though low doc personal loans may require less paperwork, you may need to provide additional security, or pay a higher interest rate.
What do single parents need for a personal loan application?
Much like applying for other personal loans, applying for personal loans for single parents will likely require the following:
- Proof of identity
- Proof of residence
- Proof of income
- Details of assets (e.g. car, home)
- Details of liabilities (e.g. credit cards, other loans)
- Loan amount
- Loan term
Can I get guaranteed approval for a bad credit personal loan?
Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application.
It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid.
So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.
What are the Westpac personal loan eligibility criteria?
The process to apply for a personal loan from Westpac is simple and can be done online. To be eligible for a Westpac Bank personal loan, you must meet the eligibility criteria. These include:
- You should be over 18 years old
- You must be a permanent resident or hold a valid visa with confirmed employment in Australia
- You should earn a regular and permanent income of at least $35,000 before taxes
If you feel you meet these eligibility criteria, you can apply for a personal loan with Westpac. With your application form, you’ll also have to submit the following documents:
- Personal details including name, contact information, and residential address
- Proof of identity such as drivers licence or passport details
- If you’re self-employed, you’ll need a list of assets, savings, investments, and liabilities as well as your most recent tax return information
- If you’re an employee you’ll need to submit information related to your employment and finances like bank statements and payslips
Westpac Australia personal loans are available for amounts from $4,000 up to $50,000 and loan terms of up to seven years.
Will comprehensive credit reporting change my credit score?
Comprehensive credit reporting may change your credit score, either positively or negatively, depending on an individual's situation.
Under comprehensive credit reporting, credit providers will share more information, both positive and negative, about how you and other Australians manage credit products. That means credit reporting bureaus will be able to make a more thorough assessment of everyone’s credit behaviour. That will lead to higher scores for some consumers and lower scores for others.