Personal Loan Rates From 4.24%

Compare personal loan interest rates, repayments, fees and more.

Lowest advertised rate 4.24%; Comparison rate 4.45%....Read More

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Why should you compare personal loan rates?

Australians from all walks of life sometimes need a financial helping hand. Whether it’s paying for education, starting a business, or splurging on a dream wedding, holiday or car, a personal loan can sometimes be just what you need to turn dreams into a reality. 

But not all personal loans are created equal, and the best personal loan is the one that matches your financial needs both today and as you pay it off.

At RateCity, you can compare personal loan rates on a range of personal loan options side by side, and compare personal loan features and benefits to make a more informed decision when selecting a suitable lender for your financial situation.

Compare personal loan rates in Australia

The best personal loan rates vary wildly and depend on your personal circumstances, though it's always wise to research your options by comparison personal loans to find the best for you. 

Some of these include:  

Compare some of the best personal loan rates in Australia

What is a personal loan?

personal loan is when you borrow money that is repaid in regular instalments plus interest over a set period of time (usually 3-5 years). A personal loan can be used to buy a car, consolidate debt, pay for a holiday and much more. Most providers offer personal loans anywhere from $1,000 to $300,000.

What can you use personal loans for?

How do personal loans work?

Personal loans allow you to obtain a lump sum payment to be paid back to the lender, with interest in agreed upon weekly, fortnightly or monthly repayments. 

You can expect the following when applying for a personal loan:

  1. Providing personal information – You will need to have a few pieces of personal information, including proof of income, bank statements, personal identification and in the case of a secured loan, details around the asset you’re offering up as security.
  2. Eligibility assessment - A lender will assess your eligibility when you apply for a personal loan by looking at your personal finances. This helps borrowers determine whether you have the funds and the financial stability to reasonably pay off the loan.
  3. Credit check – All Australian lenders perform credit checks on anyone applying for a financial product. This can determine your eligibility and helps some lenders determine your personalised interest rate.
  4. Loan terms – Once you’ve been approved, you’ll be asked to sign a personal loan contract and confirm the length of your loan, the type of loan, and that you understand the fees involved.
  5. Loan repayments - Some personal loans allow borrowers to choose the repayment schedule (weekly, fortnightly or monthly) that bests suit their budget.

What types of personal loans are available?

Do you own a car, a property, or some other valuable asset, and are you looking to save on a personal loan? By putting your asset up as collateral for a secured personal loan, you may be able to enjoy a lower interest rate, as there’s less risk involved for the lender.  

There are also personal loans specifically for Aussies with bad credit. If you have bad credit, it may be harder for you to meet lender eligibility criteria and to be approved for a personal loan. You also may have to pay a higher interest rate or higher fees. However, not all hope is lost. There are several lenders who are willing to consider personal loan applications from people with bad credit

Type of personal loan rate

What to consider

Fixed rate personal loan


  • Good for budgeting - stable payments from month to month
  • No risk of repayments increasing due to interest rate rises
  • Potential to miss out on savings from interest rate cuts

Variable rate personal loan

  • Tend to have more flexibility
  • You will save money if lender interest rates fall
  • Risk of repayments increasing due to interest rate rises

Secured personal loan

  • Lower interest rates
  • Seen as a lower risk to lenders as an asset is used as security against the loan
  • Allows you to borrow a higher amount
  • For car loans - lender may only accept new models as a guarantee

Unsecured personal loan

  • Don’t risk losing your security if you default
  • Application can be a simpler process
  • Can result in higher interest rates and/or a smaller loan amount than secured loans.

What is an interest rate?

The interest rate is the percentage of extra money you’ll need to pay back to your lender with each loan repayment. When you compare personal loans, searching for the lowest personal loan interest rates is usually a good place to start.

You won’t just be paying interest to your lender - there are often other assorted fees and charges as well. When you compare personal loan rates, remember that an Australian personal loan with a low interest rate that charges high fees may ultimately turn out to be more expensive than a personal loan with a higher interest rate and lower fees. 

What interest rates and fees are involved with personal loans?

Interest rates:

When you compare personal loans, check out the personal loan comparison rate to get better idea of the loan’s total cost, and work out which options are the best loans. This combines its interest rate and standard charges into a single percentage. 

However, a loan’s comparison rate may not take its nonstandard fees and other costs into account, nor any of the value-adding extra features or benefits that could help you further narrow down your shortlist of potential personal loan options. 


There are a range of fees associated with Australian personal loans you could be expected to pay, including:

  1. Upfront costs – establishment fees or application fees
  2. Ongoing fees – annual fees and/or monthly fees
  3. Late payment fees – in the event you miss a payment
  4. Extra repayment fees – some lenders can charge you a fee for making extra repayments.

How much does a personal loan cost?

Personal loan costs need to be considered, accounting for both upfront and ongoing fees: upfront fees usually range from $0 to $500, while ongoing fees usually range from $0 to $15 per month.

To work out your interest costs, it's a good idea to use a personal loan calculator to work out different repayment scenarios. For example, here's how much a $20,000 personal loan might cost:

Loan term Interest rate Monthly repayments Total repayments
3 years 8% $627 $22,562
3 years 10% $645 $23,232
3 years 12% $664 $23,914
5 years 8% $406 $24,332
5 years 10% $425 $25,496
5 years 12% $445 $26,693

You can use a personal loan calculator to play around with different interest rates, loan terms and loan amounts.

How do I choose the best personal loan?

Using RateCity’s online personal loan comparison tools provides an effective way to assess the personal loan market, compare how much money you want to borrow against different personal loan rates and how much time it will take to pay the loan back. 

When you make your custom personal loans comparison, the results should help you decide which of the following will best suit your financial situation:

  1. A variable or fixed interest rate
  2. A secured or unsecured car loan
  3. The length of your loan
  4. Whether you should apply for a bad credit personal loan
  5. Whether you will make extra repayments
  6. Whether you need a redraw facility

Compare personal loans with RateCity

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

Can be paid off more quickly

Monthly repayments may be higher

Typical personal loan

3 - 5 years

Lower interest rate than a credit card

May cost you in fees and/or interest

Longer term personal loan

7 – 10 years

More affordable monthly repayments

Pay more interest over time

How can you pay off your personal loan early?

One way to get your personal loan fully paid off sooner (and pay less in total interest) is to make extra repayments when you have money available, such as when you get a tax refund or if a rate cut leaves you with some extra cash left over in your budget. 

However, some Australian lenders would prefer that you stick to the agreed-upon repayment plan, and may charge fees for exiting the loan early. These fees tend to be more common for fixed rate personal loans with prearranged repayment plans, though they are sometimes also found on variable rate personal loan offers, too. 

Always ensure getting out of debt early doesn’t end up costing you more than you expected. Australian Securities and Investments Commission (ASIC) provides information on personal loan fees to assist with any questions.

Are there personal loans with a redraw facility?

While making extra repayments onto your Australian personal loan can be seen as a positive thing, sometimes a financial emergency may leave you wishing you could put some of these extra payments back into your pocket. 

If you choose a personal loan that offers a redraw facility, when you’re ahead on your personal loan repayments, you’ll have the option to withdraw the surplus funds if required, subject to your lender’s terms and conditions.

Called a "redraw facility", this allows you to use any extra cash to help you pay off your personal loan ahead of schedule, while still remaining accessible if you really need it. 

Not every personal loan lender or product offers a redraw facility, however, so make sure to check the terms and conditions of the product you're signing, as well as with the lender if you need a redraw facility for your personal loan. 

Explore personal loans with redraw

Can I refinance a personal loan?

Even the best personal loan rates can change, and if you’ve found a more competitive personal loan or you’re looking to consolidate your debt, you may be considering refinancing your personal loan. 

Steps to refinance personal loans:

  1. Check your credit score as it may have changed while paying off your existing loan
  2. Compare personal loans and find a more competitive option
  3. Calculate refinancing costs (break fees, application fees etc.)
  4. Apply for the new personal loan
  5. Ensure your old loan is paid off 

It’s important to note that if you’re taking out a personal loan to consolidate your debts (including other personal loans) from multiple lenders into a single loan, with one easy-to-manage repayment each month, not every lender offers refinance personal loans for debt consolidation – check the terms and conditions first.

Personal loan application and eligibility

Most Australian lenders require the following upon application for a personal loan:

  1. Borrowers are at least 18 years old
  2. Borrowers are an Australian citizen, permanent resident or have a valid visa
  3. Borrowers earn a minimum income (dependent on lender)
  4. Borrowers are employed or receive regular income
  5. Borrowers have a good credit rating

At the time of application, you’ll typically need to provide the following documentation:

  • Proof of identity (driver’s licence, passport etc.)
  • Proof of income and employment
  • Details of any other financial commitments
  • Details of additional assets (particularly for secured loans)

Where can I get a personal loan with bad credit?

Fair credit, or bad credit, can make it harder to find a lender willing to give you a personal loan, but it doesn’t mean you won’t qualify. If you’re wondering where to get a personal loan with bad credit, there are many lenders across Australia and online who will consider applications from people with bad credit history. 

You can also apply specifically for bad credit history personal loans. 

Compare bad credit personal loans today

Which is the best bank for personal loans?

Choosing the right provider for your personal loan is a subjective experience, based on your personal needs and credit history.

There are many personal loan lenders across Australia, and you can apply for a personal loan with any of the big four banks, including ANZ, CommBank, Westpac or NAB, as well as credit unions, mutual banks and peer to peer lenders. 

Compare Australian personal loans

You know what you want from your personal loan comparison. All you need to do now is find the Australian lender who’s offering the personal loan that matches up with what you need. 

Look through the selection of personal loans in Australia at RateCity, and discover the ideal offer to help you turn your dreams into reality.

Personal Loans Guide

RateCity's Personal Loans Guide provides you with tips and useful information to assist in your decision when purchasing a personal loan. Read the Personal Loan Guide.

*The phrase ‘some of the best’ is not a recommendation or rating of products. This page compares a range of home loans from selected providers, not all products or providers are included in the comparison. No home loan is one size fits all. The best home loan for you will not be the best home loan for someone else. As a result, it's worth getting advice on whether a product is right for you before committing.


Credit reporting bodies like Equifax, Dun & Bradstreet, Experian and the Tasmanian Collection Service will give you a free credit report once a year. You can also get a free report if you’ve been refused credit in the past 90 days.

Credit reporting bodies have up to 10 days to provide reports. If you want to access your report quickly, you’ll probably have to pay.


^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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