Personal loans

A personal loan can be a useful way to finance a large project or purchase, such as home renovation, an overseas trip, or anything else on your bucket list. Take a look at various personal loan types from a range of lenders, right here on this page.

By   |   Updated 13th July 2020

Comparing personal loans for $30,000 over 5 years

ANZ Variable Rate Personal Loan

On ANZ's website

ANZ Variable Rate Personal Loan

Interest rate

15.99%

Comparison rate

16.84%

Repayment period

5 years

Application fee

$150.00

Monthly repayment

$733.03

Total repayment

$43,981.80

Highlights

  • Get a variable rate of 15.99% p.a.
  • Make extra repayments whenever you like to reduce your loan term and interest you pay, helping you to pay it off earlier.
SocietyOne Personal Loan (5 Year Loan Term)

On SocietyOne's website

SocietyOne Personal Loan (5 Year Loan Term)

Interest rate

8.40%

Comparison rate

9.66%

Repayment period

5 years

Application fee

$900.00

Monthly repayment

$632.47

Total repayment

$37,948.20

Highlights

  • Low rates from 8.40% p.a. (9.66% p.a. comparison rate)
  • No monthly or early repayment fees
Harmoney Unsecured Personal Loan (5 Year Loan Term)

On Harmoney's website

Harmoney Unsecured Personal Loan (5 Year Loan Term)

Interest rate

From 6.69% (personalised)

Comparison rate

From 7.79% (personalised)

Repayment period

5 years

Application fee

From $200.00

Monthly repayment

$593.59

Total repayment

$35,615.40

Highlights

  • Personal Loans up to $50,000
  • No early repayment fees
  • Apply online in minutes
MoneyMe Personal Loan - Excellent Credit Rating

On MoneyMe's website

MoneyMe Personal Loan - Excellent Credit Rating

Interest rate

From 8.99% (personalised)

Comparison rate

From 10.68% (personalised)

Repayment period

5 years

Application fee

From $400.00

Monthly repayment

$630.91

Total repayment

$37,854.60

Highlights

  • Easy application for up to $50,000 online, no paperwork required
  • MoneyMe's smart tech gives you an outcome on the spot
  • Funds hit your bank account in as little as minutes (transfer times may vary depending on your bank)
  • Flexible repayment options
  • No monthly charges, early exit fees or funky hidden costs
ANZ Fixed Rate Personal Loan

On ANZ's website

ANZ Fixed Rate Personal Loan

Interest rate

12.45%

Comparison rate

13.32%

Repayment period

5 years

Application fee

$150.00

Monthly repayment

$677.55

Total repayment

$40,653.00

Highlights

  • Get a fixed rate of 12.45% p.a.
  • Log on to ANZ Internet Banking to see your balance, repayments, interest paid and details about your next payment.
Harmoney Unsecured Personal Loan (3 Year Loan Term)

On Harmoney's website

Harmoney Unsecured Personal Loan (3 Year Loan Term)

Interest rate

From 6.69% (personalised)

Comparison rate

From 7.79% (personalised)

Repayment period

5 years

Application fee

From $200.00

Monthly repayment

$593.59

Total repayment

$35,615.40

Highlights

  • Personal Loans up to $50,000
  • No early repayment fees
  • Apply online in minutes
RateSetter Personal Loan: Excellent Credit (Fixed)

On RateSetter's website

RateSetter Personal Loan: Excellent Credit (Fixed)

Interest rate

From 7.49% (personalised)

Comparison rate

From 8.33% (personalised)

Repayment period

5 years

Application fee

From $249.00

Monthly repayment

$605.98

Total repayment

$36,358.80

Highlights

  • Enjoy a low rate that is 100% made for you
  • Apply online in under 10 minutes with your driver’s license and bank details. Enjoy no monthly or early repayment fees
RateSetter Personal Loan: Very Good Credit (Fixed)

On RateSetter's website

RateSetter Personal Loan: Very Good Credit (Fixed)

Interest rate

From 8.89% (personalised)

Comparison rate

From 9.74% (personalised)

Repayment period

5 years

Application fee

From $249.00

Monthly repayment

$626.31

Total repayment

$37,578.60

Highlights

  • Enjoy a low rate that is 100% made for you
  • Apply online in under 10 minutes with your driver’s license and bank details. Enjoy no monthly or early repayment fees
RateSetter Personal Loan: Good Credit (Fixed)

On RateSetter's website

RateSetter Personal Loan: Good Credit (Fixed)

Interest rate

From 10.89% (personalised)

Comparison rate

From 11.89% (personalised)

Repayment period

5 years

Application fee

From $249.00

Monthly repayment

$656.03

Total repayment

$39,361.80

Highlights

  • Enjoy a low rate that is 100% made for you
  • Apply online in under 10 minutes with your driver’s license and bank details. Enjoy no monthly or early repayment fees
RateSetter Personal Loan: Excellent Credit (Variable)

On RateSetter's website

RateSetter Personal Loan: Excellent Credit (Variable)

Interest rate

From 7.49% (personalised)

Comparison rate

From 9.50% (personalised)

Repayment period

5 years

Application fee

From $199.00

Monthly repayment

$604.98

Total repayment

$36,298.80

Highlights

  • Enjoy a low rate that is 100% made for you
  • Apply online in under 10 minutes with your driver’s license and bank details. Enjoy no monthly or early repayment fees
RateSetter Personal Loan: Very Good Credit (Variable)

On RateSetter's website

RateSetter Personal Loan: Very Good Credit (Variable)

Interest rate

From 8.89% (personalised)

Comparison rate

From 10.91% (personalised)

Repayment period

5 years

Application fee

From $199.00

Monthly repayment

$625.27

Total repayment

$37,516.20

Highlights

  • Enjoy a low rate that is 100% made for you
  • Apply online in under 10 minutes with your driver’s license and bank details. Enjoy no monthly or early repayment fees
RateSetter Personal Loan: Good Credit (Variable)

On RateSetter's website

RateSetter Personal Loan: Good Credit (Variable)

Interest rate

From 10.89% (personalised)

Comparison rate

From 13.16% (personalised)

Repayment period

5 years

Application fee

From $199.00

Monthly repayment

$654.94

Total repayment

$39,296.40

Highlights

  • Enjoy a low rate that is 100% made for you
  • Apply online in under 10 minutes with your driver’s license and bank details. Enjoy no monthly or early repayment fees

Learn about personal loans

Find out how personal loans work and what to watch out for with help from Finty's team.

  • FAQs

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

There’s no doubt that it’s easier to get a personal loan as a wage earner than as a self-employed entrepreneur. A wage or salary earner is perceived as a lower risk option because they have a provable steady income stream, unlike the more unpredictable income of the self-employed. But with around 17% of Australian workers now classified as self-employed, the process is almost certain to get easier for this now very large group. Right now though, you’ll still have quite a lot of choice from many lenders, provided you can supply the following information:

  • Last two business and/or personal tax returns
  • Last two years of ATO tax assessments
  • Recent business financial statements (Profit & Loss and Balance Sheet) if you have them
  • Bank statements showing business income and expenses
  • Rental property income statements, if applicable
  • Details of any existing personal or business loans and credit card debt
  • Official ID document, such as Australian driver’s licence or passport
  • Your residential and business addresses
  • Your ABN and any other business operating licences

If you are unable to provide this information, you may have to resort to a low doc loan, which will usually have a much higher interest rate.

Can I still get a personal loan if my credit rating is poor?

A low credit rating will certainly limit your loan options. It is possible to get a secured loan with no credit check, if you have some sort of collateral to offer, such as your house or a car. Some lenders may even be prepared to give you an unsecured personal loan with no credit check, but you’ll probably have to meet a higher income requirement and certainly pay a higher interest rate. As a last resort, so-called ‘payday loans’ (short-term loans of low amounts from lenders who are not Authorised Deposit-Taking Institutions) are extremely expensive and can often lead to a long-term debt spiral. Avoid them if you possibly can.

How can I decide which personal loan best suits my needs?

Ask yourself these questions:

  • Do I want a fixed interest rate or a variable interest rate?
  • Do I want a secured or unsecured loan?
  • What loan repayment term do I need?
  • Which loan fitting all my requirements is offering the lowest comparison interest rate?
  • Am I satisfied with this lender’s reputation for service?

How can I qualify for a good personal loan interest rate?

It will depend to a large extent on your credit rating. If you have a high credit score you will usually be offered a lower interest rate than someone with a poor score. A really low credit score could mean that your application is declined altogether.

How much can I borrow with a personal loan?

The amount you are allowed to borrow will depend on your income and credit rating, and possibly other factors such as how long you have been in your current job and what assets you have. When you apply you won’t know in advance how much you will be approved for, but you do need to have an amount in mind. Lenders will usually indicate the minimum and maximum amounts they are prepared to lend with an advertised loan, so before you apply you need to make sure that the amount you want to borrow falls within the lender’s limits.

Is it a good idea to get a personal loan?

It depends on why you want or need to borrow money. If you already have high interest debt (such as credit card debt) that you would like to consolidate, or you would like to finance a large project such as a home renovation, a personal loan can be a better option than a credit card because it will usually have a much lower interest rate. You may also need a personal loan to cover an emergency, such as medical expenses or urgent home repairs. But it may not be the best idea to get a personal loan to cover discretionary spending like a short holiday or a new TV, unless your only other option is to put the purchase on a standard credit card.

The cheapest option for discretionary spending is obviously money you’ve already saved, or, failing that, a credit card with a long 0% interest period on purchases (provided you are sure you will have saved up enough to repay the balance when the 0% interest period ends). However, if you really need or want to make that major purchase, a personal loan is likely to be a less expensive option than finance obtained through the seller.

What information and documents will I need to supply when applying for a personal loan?

You will need to provide:

  • A primary ID document such as an Australian driver’s licence, Australian passport (or foreign passport with residency visa), or other forms of ID (birth certificate, citizenship certificate, Medicare card, overseas driver’s licence, utility bills) if you don’t have a primary form of ID
  • Proof of income, such as recent payslips, rental income statements, or tax returns/assessments to prove self-employment income
  • Details of your personal assets (bank deposits, real estate property, vehicles &c) and liabilities (credit cards, other loans including home loans)
  • Details of your monthly or annual living expenses

What is a personal loan?

A personal loan is financial product, an instalment loan that allows you to borrow money during an agreed term for a wide variety of purposes, and pay interest on the amount borrowed along with repayments of the loan principal. You might use a personal loan to finance a once-in-a lifetime overseas trip, or a wedding, or to renovate your home, or buy a car or consolidate your debts.

A personal loan may be secured or unsecured, and have either a fixed or variable interest rate, and you don’t need to nominate and stick to a specific purpose for the loan.

What is the comparison interest rate?

You will usually see two interest rates quoted for a each personal loan. The first is the ‘advertised rate’, the face value interest rate that is applied to the loan principal to work out how much interest you have to pay. The second rate is the ‘comparison rate’, which will be slightly higher or possibly much higher. The comparison rate has built into it the effect of any upfront, ongoing and unavoidable exit fees associated with the loan. Expressing these charges in terms of the effective interest rate you will be paying allows you to compare the true cost of competing loans more accurately.

But be aware that the comparison rate is calculated based on a typical loan amount (e.g. $10,000) and typical loan term (e.g. three years) and may not include absolutely every possible fee, so use it as a general guide rather than a guaranteed result.

What is the loan term for a personal loan?

Loan terms can vary between six months and seven years. Choose the shortest term that will result in monthly repayments that you can afford without stretching your budget to the absolute limit. This will result in a lower overall interest cost than choosing a loan term longer than necessary, but too short a loan term could put you into financial difficulties if something unforeseen interferes with your budget.

What kinds of personal loan are available?

Personal loans can be unsecured or secured, and they can have an interest rate which is fixed or variable. The best approach is to find the right kind of loan for your borrowing purpose and personal financial circumstances.

  • Unsecured personal loans are the most common type of loan. Unlike, for example, a home mortgage or a car loan, the lender will not take a charge over your asset (e.g. the house or the car) as security in the event that you default on your loan repayments. The lender would still have the option of taking you to court to recover the debt. Interest rates on unsecured loans tend to be higher than those on secured personal loans.
  • Secured personal loans have a charge against an asset, usually the asset you are buying with the loan money, as a form of collateral. The lender could repossess and sell the asset if you default on the loan. This kind of personal loan is considered less risky for the lender and therefore usually comes with a lower interest rate.
  • Fixed interest rate personal loans have an agreed interest rate applied to the amount borrowed over the full term of the loan. The interest rate never changes, and total interest charges are calculated upfront. The sum of principal plus interest is then usually divided by the number of repayment periods during the loan term, so that the amount of each monthly or fortnightly repayment is also fixed. It makes budgeting easier, but there’s a risk that you end up paying more than you needed to if other interest rates go down while you are still making repayments.
  • Variable interest rate personal loans are offered at an interest rate which may go up or down during the loan period, usually in response to a change in the Reserve Bank’s official cash rate. A variable rate loan can be an advantage in a period where interest rates are generally declining, or a disadvantage in a period where interest rates are rising. They are also more difficult to budget for, since the monthly repayment about is subject to change in line with interest rate changes.

What other features should I look for in a personal loan?

Once you’ve decided whether you need a secured or unsecured loan, and a fixed or variable interest rate, you need to start comparing the other features of the loans on offer, including:

  • The interest rate and comparison interest rate
  • The available loan terms (i.e. the length of time over which your repayments will stretch, with longer loan terms resulting on lower monthly or fortnightly repayments, but more interest cost in total)
  • Any fees associated with the loan, such as an application fee, monthly or annual account keeping fee, late periodic payment fee, early loan discharge fee
  • Flexibility or restrictions around making additional repayments or repaying the full amount early, both of which could reduce your interest cost but see you paying additional fees

Will applying for a personal loan have an impact on my credit score?

A personal loan application is what is known as a ‘hard enquiry’ because a third party will ask to see the details on your credit file. It will cost you a few points on your credit score, but can’t really do much damage if you have a good credit rating. Once you’re approved and your loan term begins, your score will go down slightly again, but will recover and improve as long as you keep up with repayments.

In fact, there are two more ways in which taking out a personal loan can improve your credit score. Having a mix of different types of debt, rather than just credit card debt, can lift your score. A personal loan may also lower your credit utilisation ratio — the amount of credit you’re using as a percentage of your credit limit — if you use the loan to pay off credit card debt.

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