Australia’s Best Personal Loans for January 2022

mother and son renovating using personal loan

It’s January and there’s so much to look forward to in 2022. ​​The new year is the perfect time to consider your finances and plan for new projects ahead. Additionally, with the opening of the Aussie borders, there are many reasons for wanting to take out a personal loan and just as many options when it comes to choosing a loan and lender in Australia. That’s why it’s so important to be confident you’re getting the best personal loan deal you can.

With over 70 lenders to choose from, there isn’t going to be a single best personal loan for every borrower but there are definitely some key features that all great personal loans have in common. These are low interest rates, minimal fees and the flexibility to make extra repayments.

Many personal loan lenders now use risk-based pricing and this means that the interest rate of your loan is based on your credit profile. Interest rates on personal loans start as low as 4.99% (4.99% comparison rate*) but go to comparison rates over 20% and to get the best rate you’ll need for your credit score to be in top shape.

Mozo’s money experts track personal loans from Australia’s lenders from big banks like ANZ, NAB, Westpac and the Commonwealth Bank, through to online specialist lenders, all of which are regulated by the Australian Prudential Regulation Authority (APRA).

There are many ways to define which personal loans are the best and ultimately the answer will depend on what’s most important to you and your financial circumstances. We have pulled together information about a range of loan options, some of which have won Mozo awards, and others the Mozo team has chosen to highlight great deals available right now. 

Best personal loans for January 2022

Expert recommendations: Mozo Experts Choice Award-winning best personal loans

Mozo Experts Choice Awards Badge

Each year, our team of data analysts run a comprehensive assessment of every personal loan in our database to determine which ones offer Australians the best value for their money as part of our Mozo Experts Choice Awards^. Our experts compared 338 personal loans from 82 lenders, with only the best in each category making the final cut.

Below is a selection of winners from the recently announced 2022 awards, which present great value for the year ahead. If you want to learn more about how we selected the best of the best personal loans, check out the Mozo Personal Loan Awards page.

Best Unsecured Personal Loan

Alex Bank Personal Loan
  • Fixed rates from 4.99% p.a. (4.99% p.a. comparison rate*)
  • No upfront, ongoing fees or early repayment fees (conditions apply)
  • Borrow up to $30,000

Why it won: Alex Bank impressed our judges with its competitive pricing and straightforward personal loan. With low fixed rates starting from 4.99% p.a. (4.99% p.a. comparison rate*), this loan rewards customers with excellent credit. Customers can choose between making weekly, fortnightly and monthly repayments as well as the option to make extra repayments whenever you like, with no ongoing early repayment fees. Just keep in mind, there are no redraws allowed on this loan. Alex Bank is also currently waiving the $295 establishment fee. So, if you submit an application by 26 January 2022, you may be able to avoid that extra cost.

NOW Finance No Fee Unsecured Personal Loan
  • No fees
  • Fixed interest rates starting at 5.95% p.a. (5.95% p.a comparison rate*)
  • Borrow up to $50,000

Why it won: With fixed interest rates starting at 5.95% p.a. (5.95% p.a. comparison rate*), online lender Now Finance is a top choice for borrowers with excellent credit looking to borrow between $5,000 to $50,000. You won’t be up for any upfront application or ongoing fees either. There is a standard maximum loan term of 7 years but if you’re borrowing less than $8,000 the maximum term is 3 years. You can also pay out the loan early without incurring a fee. This loan also has a choice between weekly and fortnightly payments.

Other standout personal loan winners

The providers listed above weren’t the only ones to win big in this round of Mozo Experts Choice Awards for Personal Loans. Some other major winners:

  • Illawarra Credit Union was given the Best New Loan Product award for their Green Eco Loan.
  • Australian Mutual Bank was the only provider to take out Green Personal Loan title, winning with their Green Loan.
  • Heritage Bank was among the winners in the Used Car Loan category thanks to their Car Loan.

Looking for an award-winning car loan? Check out our best car loans in Australia page for more top offers.

For the full list of this year’s winners and to find out more about how we select the best personal loans for the awards, read the Mozo Experts Choice Personal Loan Awards methodology report.

Customer favourites: Best personal loans from Mozo People’s Choice Award winners

Mozo People's Choice Awards Badge

The Mozo People’s Choice Awards are a national annual survey of what real Australians think of their banks and lenders. Providers are rated on a range of important factors, including customer satisfaction, customer service, friendliness, trust and whether they’d recommend them to others. Here’s a look at some of our winners from the 2021 awards which carry through to May 2022 the personal loan options they offer.

Great Southern Bank Unsecured Loan
  • 9.39% interest rate (9.64% comparison rate)
  • Borrow up to $50,000
  • 1 to 7 year loan terms

What you need to know: Great Southern Bank (formerly CUA) won awards for Excellent Customer Service and Highly trusted in the Mozo People’s Choice Awards^. Its unsecured loan has no account keeping fees, a redraw facility and a choice of weekly, fortnightly or monthly repayments. Borrowers can choose between 1 to 7 year loan terms and from loan amount as low as $5,000 up to a maximum of $50,000. There is an upfront $175 application fee to consider. Apply online and you can receive approval usually within 24 hours.

Greater Bank New Car Loan
  • Fixed 4.98% interest (5.36% comparison)
  • Borrow up to $100,000
  • Extra repayments allowed and redraw
Find out more

What you need to know: Greater Bank had a clean sweep in all key banking categories in the People’s Choice Awards^ taking awards for trust, customer service and excellent customer satisfaction. For people who are looking to purchase a new car, the new car loan has a lot going for it. The interest rate is fixed at 4.98% (5.36% comparison) and can be taken out up to 7 years. There’s a loan maximum of $100,000 and it has flexible weekly, monthly or fortnightly repayments. You can make extra repayments and pay out the loan early without penalty but there is a $275 loan establishment fee. Available for NSW, QLD and ACT residents.

Mozo Editor's Pick for Personal Loans

Editor’s pick of the month:  best personal loan deals on Mozo in January

Here’s a selection of some of the top deals available right now from our partners as selected by our editors. These are options that we think are worth highlighting for people wanting a great personal loan. You can also visit our personal loan hub where you can do a full database search, read guides or more detailed product reviews.

Special low rate offer

Our Money Market Low Rate Personal Loan
  • Rates from 5.45% (6.07% comparison*) for excellent credit
  • No monthly fees
  • Borrow up to $75,000

Key details: OMM offers competitive rates, which start at 5.45% (6.07% comparison) for borrowers with excellent credit. Even with the $250 application fee taken into account, it was cheaper overall than many other loans up for consideration. Available for loan amounts to $75,000 and loan terms of between 1 - 7 years, it has a lot of flexibility and no monthly fees.  Payout the loan early without penalty, access to a free redraw and choose between weekly, monthly or fortnightly repayments are other benefits.

Earning Qantas rewards points

Symple Unsecured Personal Loan
  • Rates from 5.75% (6.47% comparison)
  • Earn up to 50,000 Qantas points
  • Borrow from $5,000 to $50,000

Key details: Borrowers can earn 1 Qantas point for every $1 borrowed up to $50,000 (T&Cs apply). There is a minimum loan amount of $5,000 and loan terms of 1 up to 7 years. Interest rates start at 5.75 % but will vary depending on your credit history. Repayments are on a monthly basis but you also have flexibility to pay out the loan early at any time without penalty or to make extra repayments. There is a $10 monthly fee to consider and if you don’t qualify for the lowest rate of 5.75% you will need to pay an upfront loan application fee which can be up to 5% of the loan amount.

Fast-approval and funding

Big bank borrowing

NAB Unsecured Personal Loan Variable
  • Rates from 6.99% p.a. (7.91% p.a. comparison rate*)
  • 1-7 year loan terms
  • Free extra repayments

Key details: The lowest personal loan starting variable rate offered by a Big Four Bank, NAB personal loan rates start at 6.99% (7.91% comparison) for borrowers with excellent credit. The NAB Unsecured Personal Loan is all about flexibility, with loan terms ranging from 1-7 years on amounts between $5000 and $55,000. Repayments can be made weekly, fortnightly or monthly, and there is no early repayment penalty for paying off your balance early. It also has a redraw facility, so you can draw upon that cash if you need it later. Keep in mind that there are also some fees associated with this loan, including a $150 establishment fee and a $10 monthly service charge.

Green home improvements

Handypay Green Loan
  • Rates from a low 5.79% p.a. (6.36% comparison)
  • Borrow up to $75,000
  • Loans 1 to 7 years

Key details: Handypay is a specialist home improvement plan provider offering loans for borrowers with excellent credit which you can use for a range of green home initiatives such as solar panels, batteries, rainwater tanks or energy efficient renovations. There is a $250 application fee but the loan doesn’t have any ongoing or monthly account fees. Borrow up to $75,000 and choose a loan term between 1 to 7 years.

Most common FAQs about personal loans

What can I use a personal loan for? 

There are many reasons why you might want to get a personal loan. Some of the common reasons for getting a loan include buying a car, consolidating debt, renovating your home or getting married. But there really is no limit to what you could use a personal loan for, so long as you’re prepared to pay the borrowed money back (with interest).

Just be aware that some personal loans will come with some conditions where they need to be used for a specific purpose such as a green loan where you’ll have to show proof of the purchase.

What features do the best personal loans have?   

Money-saving features are what you should look for when you are doing a personal loan comparison. With personal loans these include:

  • A low interest rate: The lower your interest rate, the smaller your repayments. To get the lowest rate personal loan you’ll generally need to have an excellent credit rating. Learn more about what this means by reading our guide on how to improve your credit score.
  • Low fees: There are many lenders these days that have no fees so it is worth shopping around. There are many avoidable fees as well such as late payment fees so if you do get approved for a loan, be sure to set up an automatic or direct debit to be sure you meet due dates for your bills.
  • Extra repayments: if you’re in a situation where you have extra cash to put towards your loan it’s a good idea to do it so that you can get out of debt sooner. This smart habit will also have a positive impact on your credit history which will help if you need to borrow money again in the future.
Which bank has the best personal loan rates? 

If by best, you mean best interest rate, there isn’t a simple answer to this question. The reason is because in Australia many banks and online lenders use risk-based pricing for personal loans so the interest rate that you will get will be personalised based on your credit history. This is why you’ll see an interest rate range for each personal loan listed on our site. To find out the interest rate you are likely to get if you apply for a loan try Mozo’s Rate Matcher tool.

What’s best, a fixed or variable rate personal loan? 

The type of interest rate that will be best for you will depend on your financial circumstances. Fixed interest rates are great for people who like to know exactly how much they have to pay each month. Variable interest rates can move over the loan term so they could go down, but they could also go up so it is best to consider this when you are deciding on the loan term.

What’s the best loan term for a personal loan? 

The best loan term for you will depend on a number of factors such as how much you want to borrow and your income. If you select a loan term that is too short, you could get into financial stress and miss payments. But take out a loan over a long period of time and the more money you’ll have to pay in interest and fees.

The good news is that most lenders allow you to pay out loans early without penalty so it is best to select a loan term that you can comfortably meet repayments and whenever possible make more than the minimum monthly payment so that you can pay it back as fast as possible.

How can I get the best chance of getting a loan approved?

One of the best ways to ensure getting approved for a personal loan is to make sure you meet the eligibility criteria before applying. Generally, these can include:

  • Be at least 18 years of age
    • Hold Australian citizenship or an eligible visa and reside in Australia.
    • Meet minimum income requirements
    • Pass a credit check

    In order to put yourself in the best position to be approved, you should also prepare for your credit history to be closely analysed by lenders. You’ll want to have your credit score in tip-top shape in order to put your best foot forward.

    Of course, every lender also has their own set of criteria, so to give yourself the best chance of being approved, be sure to double-check that you meet the requirements of the specific loan you are applying for.

    What is a secured loan? 

    A secured loan is a personal loan that is secured against an asset so that if you were unable to repay the loan, the lender could claim against that asset. Secured car loans are a common type of loan for new car loans in Australia and generally these loans will have lower interest rates than unsecured ones.

    Are these loans best for me? 

    We have provided some of our editor’s picks and information about products which have got Mozo’s seal of approval through the Mozo awards. Ultimately, you will need to consider your priorities and financial needs to identify which options are best for you. Be sure to read the information provided on a product issuer’s website before making a decision.

    * WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

    ^See information about the Mozo Experts Choice Personal Loan Awards

    Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

    While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.