Personal Loans

Personalised Loan Shopping

See which lenders will give you the best personal loan. Instant online results.

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Personal Loans
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Simple & quick, we narrow down the lenders you're eligible for.

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Personalised rates

See multiple lender rates you actually qualify for, all at once.

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Checkout with confidence

After easily comparing, select the lender who best suits you.

MONEY HAS BEEN FEATURED ON:

Our mission

Money.com.au (Money) is on a mission to enable Australian consumers to enjoy an online shopping experience for financial products, starting with personal loans.

We believe that by providing you with fair & transparent choice, we will achieve our mission, and help more Australians get better deals (more for your money).

Putting you first means:

  • We only show you loans you qualify for, ranked by the lowest repayment

  • We show you “apples with apples” loan comparisons (by simplifying & standardising information)

  • We do not accept paid endorsements or promote lenders based on commission.

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Compare personal loan rates

Loan Amount
Loan Terms
Interest Rates
(APR)
Comparison Rates
(APR)
$5,000 - $50,000
18 - 84 months
5.95 - 17.95% 5.95 - 17.95% Get your rate
$5,000 - $50,000
1 - 5 years
6.99 - 20.49% 6.99 - 22.06% Get your rate
$5,000 - $63,000
3 - 7 years
6.49 - 20.45% 7.22 - 21.28% Get your rate
$5,000 - $63,000
12 - 36 months
19.95 - 28% 35.97 - 47.66% Get your rate

Key features of a personal loan:

  • Borrow from $2,000 to $100,000

  • Fixed or variable interest rates

  • Repayments to suit your budget

  • Terms from 1 to 7 years (most common is 3 years)

  • Secured & unsecured options

Who can get a personal loan?

  • Australian Permanent Residents (& some visa holders)

  • Must be over the age of 18

  • Earn a minimum of $25,000 a year

Learn more about personal loans

What is a Personal Loan?

A personal loan is an amount of money borrowed from a lender (e.g. a bank, non-bank, fintech), between $2,000 and $100,000, which is repaid in regular instalments between one and seven years. Personal loans can be secured or unsecured, and are used to consolidate debt, home renovations, pay sudden bills or expenses, finance a holiday, or for any other personal expense.

Personal loan repayments include interest accrued on the principal amount and any fees charged by the lender. Interest rates are determined by the lender based on your personal risk profile.

Money Tip: An unsecured personal loan doesn’t require any collateral - i.e. security such as your home or car - and can be used for almost any purpose.

Compare personal loans

Before you apply, you’ll want to compare personal loans based on a number of loan factors. Rates, fees, and other loan details will vary between lenders - so just make sure you’re comparing loans of equal amount and term. Here’s advice from MoneySmart, the Australian Government financial literacy website, on how to compare personal loans:

Source: MoneySmart

Fees aren’t included in the advertised rate for a loan, which is designed to make the loan offer more appealing than it is, and is true to its name: an advertisement. The true cost of a loan is found by looking at the comparison rate, which expresses all charges (interest plus fees) as a simple percentage.

When comparing various personal loan offers from multiple lenders, use the comparison rate to ensure you are accounting for all fees and potential charges. If you are using the Money.com.au smart-form to compare personalised loan offers and rates, the comparison rate will be listed clearly on the results screen.

Variable fees are not included in the comparison rate - such as late-payment fees - so be sure to keep these in mind when comparing deals. The four types of fees you should be aware of when comparing lenders for a personal loan include:

  • Upfront costs - establishment fees and application fees

  • Ongoing fees - annual fees and monthly fees

  • Late payment fees - charged if you miss a payment

  • Extra repayment fees - charged if you make early repayments to reduce the amount of interest payable on the principal amount.

Choosing a personal loan without any fees or penalties for early repayments may allow you to repay your loan earlier and save on interest, either by lowering your monthly repayments or keeping your payments at the same amount while reducing the term of your loan.

Best personal loan interest rates

The best personal loan rates you’ll see advertised are typically available to borrowers with the best profile, not the majority of applicants. Lenders advertise their lowest rates because they’re appealing and, if you qualify, represent their best deal.

For everyone else, however, the rate offered by lenders will vary, and be relative to the risk profile of the borrower. This can make comparing rates (and loans) a complex process if you’re doing it alone:

  • How is your risk profile determined?

  • Do all lenders assess risk differently?

  • How do you really know you’re getting the best deal?

If a lender finds you a high-risk borrower, the best-case scenario is that they may offer you a higher interest rate. But risk appetite will vary between lenders; while one lender may be comfortable accepting your application, another may decline you (which could impact your credit score and leave you worse off than when you started).

At Money.com.au, you can save yourself the time and stress of going through this process over and over with various lenders, and instead see actual, personalised rates from our Lender Partners which you can get approved for, all by answering some simple questions.

We work with our Lender Partners to understand their risk appetite, approval criteria, and how they apply interest rates to various borrowers so that we can provide you with real, comparable loan offers.

No impact on your credit score, and no obligation. Just the best deals we can find, with no hidden fees, inflated interest rates, or paid promotions.

Fixed-rate or variable rate personal loans?

Whether fixed or variable interest rates are better for you will depend entirely on your goals and circumstances:

  • If you plan to pay your loan off early to save on interest, a variable rate will generally not include extra charges or fees when making additional, early repayments.

  • On the other hand, if you plan on repaying the minimum amount over the entire loan term, a fixed interest rate may be more suitable. Fixed rates are often a little lower than variable rates, and they provide a certainty which makes budgeting and meeting repayments easier.

Fixed interest rate personal loans

Money Tip: Financing a newer vehicle and having a high credit score are two key factors to getting a low-interest rate car loan.

Fixed interest rate personal loans have the same interest rate for their entire term, or a set portion of the term. With a fixed interest rate, you know that your repayments will stay the same during the fixed period, which makes budgeting easier. You’re also protected against interest rate increases.

On the other hand, fixed interest rates can be restrictive. If you have a fixed interest rate, you may be charged fees if you make extra repayments, as well as a break fee if you pay your loan off earlier. Plus, if market interest rates decrease, yours will stay the same and you may miss out on savings. Fixed interest rates also tend to have shorter loan terms.

Variable interest rate personal loans

Variable interest rates increase or decrease in relation to the market, and can change at any time throughout your loan term. Variable interest rates will generally offer greater flexibility in making extra repayments or repaying the loan early without incurring fees.

On the other hand, variable interest rates don’t provide certainty. Your repayments could change at any time and, if market interest rates increase, you could end up paying more interest.

Cheap personal loans

Choosing a personal loan is easy. Choosing the right loan for your unique circumstances is much more complicated, and agreeing to a personal loan that isn’t the most suitable for your situation could mean paying more money over time than you need to.

In the section above, we discussed how lenders assign interest rates, fees, and other costs based on risk. Low-risk lending will have lower fees and lower interest rates (which means you’ll pay less overall), while high-risk lending will have higher fees and higher interest rates (which means you’ll pay more than you might need to).
However, risk isn’t only about your borrower profile or credit score. It can also be determined by the value of any security put down on a loan, relative to the principal amount.

For example, if you wish to purchase a car, you might want to first see if you qualify for a secured car loan, not a secured personal loan which you will use to buy a car.

While they may sound like very much the same product, they are not:

  • A secured car loan is a financial product which uses the entire loan amount to finance the purchase of a vehicle.

  • A secured personal loan will still use the vehicle as collateral but may provide additional funds for you to use for anything else - such as bill repayments, consolidating debt, or other personal expenses.

Why is this a problem?

While reducing the amount of interest you pay is one of the easiest ways to get a cheaper personal loan, there are a few other ways to reduce the total cost of your loan and, therefore, your total amount of debt.

Here are 3 simple things you can do to make it happen:

  • Choose a shorter term
    The shorter your loan term is, the less interest you’ll pay. When reviewing personal loan offers, compare the difference in repayments and total interest paid across various terms. Choosing the shortest term possible which you can comfortably afford to meet repayments on will help reduce the total number of payments, and the total amount of interest charges.

  • Make extra repayments as soon as possible
    Your regular loan repayments cover both the principal amount and the interest charges relating to the outstanding balance (At the start of your loan, your payments will mostly cover interest charges, while at the end of your loan, you’ll mostly be reducing your principal amount).

    However, extra repayments only reduce the principal balance. The sooner you can make extra repayments on your loan, the more you can save on interest charges - just make sure you can make extra repayments without incurring additional fees!

  • Secure a low-fee or no-fee loan
    Paying fewer - or lower - personal loan fees can free up cash to make extra repayments. Always make sure you look closely at all personal loan fees and the comparison rate before applying.

This is particularly important when it comes to any hidden fees - such as late-payment fees, extra payment fees, or early break fees - as these are often not included in the comparison rate for your loan. While it’s unlikely you’ll ever plan to incur these fees, the last thing you’ll want after finding the best personal loan for your circumstances is to have it unnecessarily cost more than you originally thought it would.

A loan amount secured by an asset of equal value is low-risk lending. If you default on your loan, the lender can take possession of the asset, and sell it to recoup their losses.

However, if the loan is secured by an asset of lower value than the principal amount, the risk is much higher as, even if they reclaimed the asset, the lender would not be able to recoup all of their losses.

This becomes a problem when the loan offer presented is not fit-for-purpose, and it costs you (the borrower) more as a result. With Money.com.au, we do not try to up-sell, unfairly profit, or obscure the details of the offers we present.

Using our secure smart-form, you only see personalised rates which are presented based on the information you provide, so you can compare real loan offers. In fact, MoneySmart advises shopping around and comparing loans before applying, as comparing personal loans can save thousands, and we agree:

The best car loan is generally the one that costs the least. Comparing car loans while keeping rates, fees, and repayments in mind could help you get the best car loan for your personal circumstances.

Money Tip: Some car loans can be structured to allow early repayments without penalty. This can be a good option if you need lower repayments initially but plan to repay the loan in full before the end of your term.

How to qualify and apply

You can qualify for a personal loan in Australia if you are:

  • Over the age of 18; and

  • An Australian citizen or permanent resident; and

  • Hold a valid provisional or full driver licence

If you meet the basic eligibility for a personal loan, you will then need to compare lenders and assess their individual approval criteria.

To get a personal loan you will need to:

  • Submit a personal loan application to a lender

  • Meet the lender’s approval criteria for the personal loan

  • Sign a loan contract and agree to the terms of the loan

The most important factor when gaining approval is to demonstrate your ability to meet the repayment schedule over the term of the loan.

You will need to provide personal identification and financial documents (usually your bank statements or recent payslips), as lenders will need to assess your financial stability and determine if you can service the loan amount.

Money Tip: Depending on the personal loan lender you choose to apply with, approving your application can take anywhere from a few minutes to a couple of days. If approval speed is important, you may wish to consider an online lender.

Personal loan summary

Personal loans are one of the most common types of personal finance, and are offered by the majority of lenders in Australia. Personal loan interest rates are advertised by the lender at the best, lowest rate available, while the actual interest rate applied is determined by the risk profile of the borrower.

Personal loans can be used for almost any purpose - the most common uses are debt consolidation, home improvements, buying a car, taking a holiday, planning a wedding, and covering emergency or elective medical expenses.

Personal loans in Australia:

  • Range from $2,000 to $100,000

  • Can be secured or unsecured

  • Have terms from 1 to 7 years

  • Used for many different purposes

  • Do not require a deposit

  • Can have fixed or variable interest rates

Pros
Cons
  • Easier to obtain than mortgages
  • Formal application process unlike an overdraft or credit card
  • Lower interest rates than credit cards
  • Higher interest rate than if you borrowed the money as part of a mortgage
  • Easy application process with non-bank lenders
  • Fees can impact your repayments
  • Fast approval - funds can be made available within 24 hours

How much money do you need ?

Here are the most popular questions people are asking about personal loans:

Can I get a personal loan if I’m self-employed?

If you are self-employed, you’ll need to provide different documentation to lenders when applying for a personal loan. If you are using a personal loan broker, they will be able to advise on the specific documentation you will need to meet lender approval. In general, you will need to provide tax returns in place of employee payslips.

How fast is a personal loan approved?

Approval speed on personal loans will vary between lenders. In general, banks have the slowest approval speed on personal loans, while online lenders can offer same-day (some even offer instant approval) approval on the majority of personal loan applications.

Can you buy a car with a personal loan?

You can consider an unsecured personal loan or a secured personal loan if you're wishing to purchase a vehicle, however you may wish to consider a specific car loan product if you only plan to use the funds to purchase the vehicle.

Can you use a personal loan for a business?

You can use a personal loan for business expenses. However, there are many specific business loans which may be better suited to acquiring finance for your business - such as a chattel mortgage for business vehicles, or a business line of credit to access variable funding when needed.

How much can I borrow with a personal loan?

The maximum amount you can borrow will be decided by the type of loan you apply for. Banks often won’t approve an unsecured personal loan for less than $3,000, while some online lenders may offer personal loans with a minimum borrowing amount of $2,000. The maximum amount you can borrow with a personal loan is generally $100,000.

Personal loan amounts - minimum and maximum funding

Personal loan minimum amount
Personal loan maximum amount
$2,000
$100,000

How can I compare personal loan interest rates?

The best way to compare personal loan interest rates is to shop around. You’ll want to look at the comparison rate (interest plus fees) of a loan instead of the advertised rate (interest only), and you’ll still need to look at any other fees such as extra-payment or late-payment fees to get a realistic idea of the true cost.

Is a fixed or variable rate personal loan better for me?

Whether a fixed or variable rate is better for you depends on your circumstances and your goals. If you want to pay your loan off early without incurring extra fees, a variable rate loan may be the best option. If you want to pay the minimum amount and keep your repayments the same a fixed rate may be better.

How can I pay less interest on my personal loan?

To pay less interest on your personal loan, you can pay the loan off faster, make extra repayments and make sure you secure a loan with low fees.

Which personal loans have the lowest interest rates?

Generally secured personal loans have lower interest rates than unsecured personal loans. That’s because lenders consider them to be lower risk.

How long can I take out a personal loan for?

Personal loans are usually offered for terms of between one and seven years. The length of your loan will directly influence the total amount you pay throughout the term. A longer loan term will mean you are allocating a greater portion of your initial repayments toward the interest accrued on the loan.

Personal loan terms - minimum and maximum length

Personal loan minimum term
Personal loan maximum term
1 year
7 years