Australia's best unsecured personal loans & rates comparison

Compare the best unsecured personal loan rates in Australia. We display all of the loans on our database (and we’re not paid by lenders to appear). Get the unsecured loan you want sooner by checking your eligibility & personalised rates from our lender panel. Simply hit ‘Compare now’ and we’ll do the work for you (or if you’d prefer to brave it yourself, we provide a link to the provider).

Rates updated 17 April 2025

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Unsecured personal loans in Australia

If you’re looking for a loan in Australia for anything other than a home or a vehicle, chances are what you’re getting is an unsecured personal loan.

It’s a very broad category, meaning it can be hard to narrow down your options. But if you look beyond the lenders’ flashy marketing, an unsecured personal loan is a fairly straightforward product.

There are just a handful of really key factors to pay attention to when comparing them. We'll take you through them in this guide.

An unsecured personal loan is a fixed-term loan that does not have any security attached to it. Because there’s no need for a specific asset to be used as security, an unsecured personal loan can be used to pay for almost anything.

That’s unlike a secured personal loan (e.g. a car loan). If a loan is secured, the lender can reclaim an asset belonging to the borrower if they can’t repay the loan.

According to Money's personal loan data, the most common purposes for an unsecured personal loan include:

Consolidating debt (57%)

Doing a home renovation (14%)

Funding medical and dental costs (6%)

Paying for travel (5%).

Why are unsecured loans more expensive than secured loans?

The cost of a most loans is based on risk. The higher the risk of lending money, the more a lender will charge.

An unsecured personal loan is riskier for a lender. Because there’s no security (aka ‘collateral’) for the lender to reclaim if you default on the loan.

But it’s still possible to find low interest rates on unsecured personal loans. Finding a low rate means a lower regular repayment and less to pay in total when you calculate the overall cost of the personal loan.

How to compare unsecured personal loans in Australia

To find the best unsecured personal loan for you, I generally suggest basing your comparison on four key factors.

The interest rate

Look for the lowest interest rate you’re eligible for. And remember, the lender will set your interest rate based on risk. Your credit score is a big factor here. The overall average interest rate on an unsecured personal loan in Australia is 13.87% p.a., according to Money data. But borrowers in the top credit score bracket (853-1,200) pay 9.79% p.a. on average.

Fees

Unsecured personal loans can come with application fees, annual or monthly fees and fees if you make extra repayments or repay the loan early. Fore example, the average monthly fee on personal loans is $5. That doesn't sound like much but it adds to to $300 over a five-year loan term. There are plenty of unsecured personal loan options with $0 in fees.

Comparison rate

The personal loan comparison rate combines the interest rate with most loan fees. It’s designed to give a closer reflection of the total annual cost of the unsecured loan.

Loan term

This is simply how long you have to repay the loan. A shorter term will save you money overall, but the regular repayments will be higher. Most borrowers request a five-year term, our analysis shows.

How much money can you borrow with an unsecured personal loan?

You can borrow from $1,000 up to $50,000 with an unsecured personal loan.

Our data shows the average unsecured personal loan amount requested is $22,643.

But remember, how much you can borrow will come down to your circumstances. The lender will consider your credit score, income and expenses when deciding how much it will lend to you.

So, who can get an unsecured loan? Well, the basic requirements are that you’re:

Over the age of 18

An Australian citizen or permanent resident

Employed or have a regular source of income

Able to afford the loan based on your other expenses

Then, to get an unsecured personal loan you will need to:

Submit a loan application to a lender

Provide supporting documents like payslips, bank statements and evidence of your other debts and assets

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

If you don't have access to documents like payslips, a low doc personal loan might be more suitable.

Fixed versus variable rate unsecured personal loan

It’s generally more common to have the choice of a fixed or variable interest rate on an unsecured personal loan (secured car loans are usually fixed).

When deciding which is best for you, the main factor is how much you value certainty.

Fixed rate unsecured personal loan

Your interest rate and repayments will not change during the loan. That means you won’t benefit if rates decrease, but you won’t need to pay more if rates go up. You may not have as much flexibility to make extra repayments on a fixed rate loan.

Variable rate unsecured personal loan

Your interest rate and repayments could go up or down. You’ll benefit if rates go down, but your costs will increase if rates go up. You’ll usually have more flexibility to repay the loan early.

Is an unsecured personal loan a good idea?

Like any loan you need to weigh up the pros and cons of taking it out. Ultimately, the big question to ask yourself is can you comfortably afford the repayments? Both now and in the future.

You can also consider some of the other pros and cons. I’ve summarised these below.

Pros and cons of an unsecured personal loan

Pros

Can be used for most purposes

You don’t need to provide security

Straightforward application process

Flexible repayments (weekly, fortnightly, monthly)

Usually there is an option to repay the loan early if you can afford extra repayments

Cons

Higher interest rates than secured loans

Lower loan amounts available

The loan term may be shorter than a secured personal loan

Rates can be quite high for bad credit personal loans

Some lenders charge a fee if you repay the loan early

Money can help you find the best deal you can on a personal loan in three simple steps:

1. Let us know who you are and what you're looking for

A little bit of information goes a long way in helping us find the right loans for you.

2. We securely analyse your data against each lender

This process finds the best loan offers that match your profile.

3. Get matched

You'll see qualified personal loan offers showing your estimated repayments.

Get your best offers from multiple lenders. There's no obligation and checking your rates won't impact your credit score.

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Personal loan guides & resources

Not sure about the next steps? Our guides and resources can help.

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Personal loans FAQs

Can I buy a car with an unsecured personal loan?

Yes, you can. But generally unless the car you’re buying is over 12 years old (the maximum varies by lender), you should be eligible for a secured car loan.

This will typically be a cheaper option.

That’s just one of the factors to consider when comparing personal loans versus car loans.

Can I get an unsecured personal loan if I have bad credit?

Yes it’s possible, but bear in mind that you will most likely have a higher interest rate than a good credit borrower applying for the same unsecured personal loan.

You will also have fewer lenders to choose from as many of the bigger banks and credit unions do not offer bad credit personal loans.

On the plus side you may be able to refinance your personal loan to a lower rate later on if your credit score has improved.

How long does it take to be approved for an unsecured personal loan?

Because unsecured loans do not require you to put up an asset as collateral, the personal loan application process is usually more straightforward.

How long it takes varies depending on the lender, but in some cases it’s possible to be approved and have the loan funds paid to you within a day.

Do banks offer unsecured personal loans?

Yes, most banks offer unsecured personal loans, including the big four of Commbank, Westpac, NAB and ANZ.

But it can pay to shop around.

We see borrowers save thousands by comparing other options, instead of simply applying for a loan with their own bank.

What happens if I can’t repay my unsecured personal loan?

With an unsecured personal loan, the lender will not be able to reclaim as asset that you own to recoup its costs.

BUT you are still responsible for the loan and the lender may have other options, including taking you to court, if you fail to make the repayments.

If you’re struggling, it’s often useful to discuss this with your lender. They may have options available to help make your repayments more manageable.

A debt consolidation loan is another common technique designed to help people manage their debt.

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