Compare Personal Loan Rates

How to Compare Personal Loans in Australia

Personal loan rates in Australia vary significantly between lenders — from around 6% to over 25% per annum. Unlike home loans where rates are standardised, personal loan rates are risk-based, meaning the rate you receive depends on your credit score, income, employment and overall financial health. The advertised rates shown are the lowest available rates that only the most creditworthy borrowers will receive.

Banks vs fintechs — which is better?

Traditional banks like CommBank, ANZ, NAB and Westpac offer the security of an established institution but often charge higher rates. Fintech lenders like SocietyOne, Plenti, Wisr and OurMoneyMarket use more sophisticated credit assessment models and can offer lower rates to good borrowers. They also tend to have faster approval and settlement times — often same-day or next-day funding.

What is a comparison rate?

The comparison rate includes the interest rate plus most fees and charges associated with the loan, expressed as a single annual percentage. It gives a more accurate picture of the true cost of the loan than the advertised interest rate alone. Always compare both the interest rate and the comparison rate when evaluating personal loans.

Secured vs unsecured personal loans

An unsecured personal loan requires no collateral and is approved based on your creditworthiness alone. A secured personal loan requires you to offer an asset — such as a car or term deposit — as security. Secured loans typically attract lower interest rates because the lender has reduced risk. Most personal loans for general purposes in Australia are unsecured.

Tips for getting the best personal loan rate

• Check your credit score before applying — a higher score means a lower rate
• Compare multiple lenders using rate comparison tools before applying
• Avoid multiple applications in a short period as each one can affect your credit score
• Consider a shorter loan term — lower total interest even if monthly repayments are higher
• Look for lenders that offer rate estimates without a hard credit check

All information is general in nature and does not constitute financial advice. Rates are indicative only. Please consult a licensed financial adviser before applying for any loan.