Compare Australian Personal Loans

Personal loans let you borrow a specific amount of money and repay the debt with interest in equal payments, over an agreed term. Personal loans tend to be cheaper on average than say, credit cards, which are seen as a typical alternative. 

If you’re looking to borrow money for a home renovation or new car, Mozo’s expert personal loan comparisons can help. There are more than 70 lenders in our database, making it easier for you to find the right loan for your needs. Start comparing below.

Personal loan comparisons on Mozo - last updated December 02, 2020

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure.

I want to borrow


  • Hot DealNo Fee Personal Loan for loans up to $40,000!


    6.95% 17.95% p.a.

    6.95% 17.95% p.a.based on $30,000
    over 5 years

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 6.95% would cost $35,599.71 including fees.

  • 5.75% 21.99% p.a.

    6.47% 25.11% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,190.18 including fees.

  • 6.49% 8.99% p.a.

    6.84% 9.34% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,459.64 including fees.

  • mozo-experts-choice-2021

    6.95% 19.99% p.a.

    6.95% 19.99% p.a.based on $30,000
    over 5 years

    Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 6.95% would cost $35,599.71 including fees.

  • mozo-experts-choice-2021

    6.75% 8.48% p.a.

    6.96% 8.69% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,580.23 including fees.

  • 6.99% 9.49% p.a.

    6.99% 12.2% p.a.based on $10,000
    over 3 years

    Terms from 2 to 3 years. Representative example: a 3 year $10,000 loan at 6.99% would cost $11,114.11 including fees.

  • 7.95% 19.45% p.a.

    8.22% 19.76% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 7.95% would cost $36,649.45 including fees.

  • 6.45% 26.99% p.a.

    6.45% 26.99% p.a.based on $30,000
    over 5 years

    Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 6.45% would cost $35,176.93 including fees.

  • 6.45% 26.99% p.a.

    6.45% 28.6% p.a.based on $30,000
    over 5 years

    Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 6.45% would cost $35,176.93 including fees.

  • 6.81% p.a.

    7.80% p.a.based on $30,000
    over 5 years

    Terms from 2 to 5 years. Representative example: a 5 year $30,000 loan at 6.81% would cost $36,280.02 including fees.

  • mozo-experts-choice-2021

    8.49% 11.19% p.a.

    8.81% 11.52% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 8.49% would cost $37,146.08 including fees.

  • 6.99% 25.69% p.a.

    7.79% 26.65% p.a.based on $30,000
    over 5 years

    Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 6.99% would cost $36,208.67 including fees.

  • 10.50% p.a.

    11.38% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 10.50% would cost $39,439.02 including fees.

  • 12.69% 18.99% p.a.

    13.56% 19.83% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 12.69% would cost $41,420.45 including fees.


^See information about the Mozo Experts Choice Personal loans 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.

Switch & Save Calculator

How much could you save by switching your personal loan? Compare savings from over 200 personal loans. Find out in a few clicks.

Get started

Get started

Personal loan resources

Reviews, news, tips and guides to help find the best personal loan for you.

December market update: Personal Loans 

Since the RBA’s decision to cut the Australian cash rate down to 0.10% on 3 November 2020, we’ve seen a number of personal loan interest rate changes. The lowest personal loan interest rate in the Mozo database now sits at 3.65% p.a.

Which lenders stand out?

With the Australian Military Bank, Credit Union SA and Transport Mutual Credit Union continuing to offer the lowest personal loan interest rates in the Mozo database, it appears that smaller mutual banks and credit unions could still be the way to go if you want a competitive rate.

How about big name lenders?

Big bank personal loan interest rates continue to sit higher than most competitor lenders at this point in time. For example, the Commonwealth Bank’s lowest personal loan interest rate currently sits just below 12%, which is quite a jump from the lowest interest rate in the Mozo database which sits at 3.65%.

Variable rate personal loans:

Of the big four banks, Commonwealth Bank currently takes the cake for the lowest variable rate, offering 11.50% p.a. (12.38% p.a. comparison rate*) on it’s Commonwealth Bank Unsecured Variable Personal Loan.

Despite dropping its rates by 3 basis points at the end of September, the ANZ Unsecured Variable Personal Loan still has the highest big bank variable rate, with a 12.99% p.a. variable interest rate (13.84% p.a. comparison rate*.

Fixed rate personal loans:

When it comes to big bank fixed rates, the Commonwealth Bank had the lowest rate once again, with its Commonwealth Bank Unsecured fixed Personal Loan (which saw a 2 basis point rate cut at the end of October), offering a 3-year fixed rate of 9.50% p.a. (10.40% p.a. comparison rate*).

The highest rate was the NAB Personal Loan (Fixed, Unsecured) which offered a 12.69% p.a. 3-year fixed rate (13.56% p.a. comparison rate*).

Personal loan rates of note in November 

Written by: Rhianna Dews, Personal Loans writer, 1 December 2020.

Personal loans explained - All you need to know

Getting the best deal on your personal loan

Dreams. They come in all shapes and sizes: a dream wedding, a dream renovation, even a dream vehicle. But the reality is, dreams can be expensive, so you might think about a personal loan, to help you get there sooner. But how do you find the one that is right for you? To start with, you need to consider your current financial situation: how much you earn, your expenses and how much you can afford in loan repayments. Be careful not to overextend, because that could turn your dream, into a financial nightmare.

Your credit history will influence who you can borrow from, and sometimes also, the interest rate you can get. A personal loan with a fixed rate can help you budget month to month, by setting your repayments at a fixed amount and a variable rate may offer some flexibility, for example if you want to pay extra to help settle your loan sooner. Secured loans have an asset as security, while unsecured one don’t, which can influence the amount you borrow and your interest rate. And loans from challengers to the big banks, like peer-to-peer lenders, can offer more competitive rates.

So whatever your dream, if you choose a competitive interest rate and be sensible with the amount you borrow, a personal loan can be a great option to make that dream happen faster.

Head to to find out how you can get the best deal on a personal loan.

But how can you find the right personal loan for your needs? Mozo is here to help with this handy guide that will run you through all the factors to consider when looking for a competitive personal loan in Australia. Starting from the top...

What is a personal loan?

A personal loan allows you to borrow a lump sum of money, and then repay that amount (plus interest on top) in installments over a set period of time. Often, you’ll make monthly repayments over a period of 1 - 5 years.

A personal loan is generally for a lower amount than a home loan, but is useful for lump sums between $2,000 and $100,000, which are too big to put on a credit card. It’s also useful because as long as you meet your monthly repayments, you’ll know how long you’ll have debt and approximately how much interest you’ll pay from the beginning.

There are different types of personal loans, including secured and unsecured, fixed rate and variable rate. You might also see debt consolidation loans, wedding loans, and car loans advertised. These are all different types of personal loans, used for specific purposes.

What can a personal loan be used for?

In Australia, personal loans can be used for pretty much whatever you need, but are commonly used to fund an expensive item like a holiday, home renovation or new car. Personal loans can also be used to consolidate debt and to pay for unexpected expenses like medical bills.

What you need the loan for might make a difference to what kind of loan you go for. For example:

  • A personal loan for a car, otherwise known as a car loan, might be more likely to be a secured option, because you have an asset (the car you’re buying) to secure it against. If you’re after a personal loan for a holiday, on the other hand, you might want an unsecured option, in case you don’t have a big asset to put up as collateral.
  • A debt consolidation loan should have a low rate and competitive fees, so you’ll have the greatest chance of paying off your lingering debt.

How to compare personal loans the right way

There are heaps of things to think about when you compare personal loans, from the interest rate, to fees, to added features and special offers. But if all that is a bit overwhelming, here’s three of the main things you should consider when comparing personal loans:

  • The comparison rate. By comparing personal loans based on the comparison rate instead of just the interest rate, you’re getting a more accurate idea of the full cost of the loan, because the comparison rate takes into account the interest and fees you’ll be charged on a personal loan. Just keep in mind that the comparison rate is based on a set scenario - 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 - so your actual loan might be slightly different.
  • Extra features. By having access to features like free extra repayments or a flexible repayment schedule, you give yourself the opportunity to pay off your loan earlier and save on interest. Just look out for things like an early break cost which might mean that paying off your loan too early may not be worth it.
  • Think about your credit rating. Some personal loans have a range of interest rates on offer, depending on what kind of borrower you are. The better your credit, generally the better the interest rate you’ll be able to secure. So, when comparing, if you’ve got great credit, opting for a loan with this range of interest rates on offer may help you snag a low rate. Your credit rating will also make a difference to what loans you’re approved for - check out our Mozo Rate Matcher to see some loans you may be eligible for.

That’s the beginning of comparing personal loans, but keep in mind there may be other factors you need to take into account, like loan terms and amounts.

How much can I borrow with a personal loan?

Good question, follow these 3 easy steps to figure out what the right borrowing amount for you will be...

Step 1: Create a budget

While a lender may approve you for a considerable loan amount, that doesn't mean you should automatically take out that entire sum. Use Mozo's budget calculator to get a clear picture of your financial situation and work out how much money you have to play with after all your expenses (home loan repayments/rent, utility bills, insurance etc) are taken out. Say you find you have a disposable income of $1,000, you'd then need to think about how much of that amount you're willing to part with to go towards paying off your loan. Because if you take out a loan that makes your monthly repayments $900, you may find yourself living off cans of tuna for the life of the loan - and who wants to live like that?

Step 2: Work out your monthly repayments

Once you've decided a monthly amount you are comfortable with, you can have a play with our personal loan repayments calculators to see what kind of borrowing scenario would work for you. If you find that the original amount you were looking at borrowing will make your ongoing repayments far too steep, you might want to consider borrowing a smaller amount or stretching the term over a longer period. 

For instance, if you borrowed $20,000 with a 10% interest rate, your monthly repayments would be $923 paid back over 2 years, compared to just $425 paid back over 5 years. But keep in mind while the longer term option will take the financial pressure off each month initially, the downside is you'll pay $3,346 more in interest over the life of the loan.

monthly repayments on a personal loan

Step 3: Compare personal loans online

Once you've figured out how much you can afford to borrow, it's time to compare personal loans to make sure you get a competitive personal loan rate with the right features for your needs. Read on for our breakdown of the different types of personal loans in the market.

What type of personal loans are there?

While many lenders offer a range of personal loans in Australia including car loans, travel (or holiday loans) and renovation loans, essentially all personal loans work the same way. You borrow a lump sum off the lender and pay it back over an agreed timeframe.

The benefit for you, is you kickstart your plans sooner and the benefit for the provider is they make a profit from the interest and fees you pay for their service.

So when it comes to personal loan comparison, here are the things we consider to be the 'real' types of loans to choose between:


If you've got some assets under your ownership belt, like a car or house, you can use them as security for the loan. 'Why would I put my precious goods at risk?' you ask. For the benefit of lower interest rates and fees, of course. But we should warn you, with a secured loan the provider has the right to seize your assets if you default on the loan.


On the other hand, if you don't have any assets to secure your loan or you don't want to put your car or home at risk, you could opt for an unsecured loan, which doesn't require you to guarantee the loan with any assets. But just keep in mind, you'll then have to say goodbye to the lower rates and fees of a secured loan.

Debt consolidation

As mentioned above, you can take out a loan to fund fun activities like overseas travel or a home reno, but there's also another useful function that a personal loan can provide - it can help you ditch debt. A debt consolidation loan works by moving across any debt you have on multiple loans or credit cards into one low rate loan. So instead of having varying due dates and a mix of interest rates (e. g 18% credit card rate, 22% store card rate and 11% car loan rate) you'll have just one repayment to worry about with a flat interest rate, which is a sure way to take the stress out of paying off your debt.

What should I look for in a personal loan?

Once you've chosen the type of personal loan that is suited to your borrowing needs, you'll need to take the time to think about the type of interest rate to go for. Here are the two main options:

Fixed interest rate

This means that your interest rate will remain the same over the life of the loan, making it easier to budget - an attractive option if you are worried about a rate hike down the track that you can't afford. Of course, there are a few cons, including generally higher rates and fees, as well as less flexible options like an extra repayments and redraw facility (see below for a full explanation). Plus, you may incur a break cost fee if you do decide to pay off the loan early.

Variable interest rate

On the other hand, a variable rate loan can change at any time, putting you at risk if your provider decides that they are going to hike up their personal loan variable rates. The real reason you would choose a variable rate loan, is for lower rates and fees and to avoid the fixed rate cons mentioned above, like penalty fees for breaking the loan early and less flexible features.

fixed vs variable rate personal loan
You should also take the time to jot down what options you'll need to make the loan work for you:

Extra repayments

While you may not be cashed up right now, you never know where you'll be financially just a few years down the track. And when you come into that extra money, you'll want to make sure your personal loan provides you with the flexible option of an extra repayments facility, allowing you to pump the cash straight into your loan, so you can say good riddance to your loan earlier.

Redraw facility

By the same token, you never know when you'll be hit up with unexpected bills later on in life, so another handy feature to have is a redraw facility, which allows you to dip into the extra repayments you've made on your loan. But that will ruin all your hard work of paying extra on your loan, so this should really be a last resort.

Flexible repayment frequency

If your employer pays you fortnightly, you are better off setting your loan repayments up to match. The major benefit of setting up fortnightly repayments is you'll pay more off the loan by the end of the year than the monthly option. Here's an example: If your monthly repayments are $1,000 you will pay off $12,000 over a year, whereas if your fortnightly repayments are $500 you will pay off $13,000, as there are 26 fortnights in the year. So that means you will shave an extra $1,000 for each year of the life of the loan, helping to speed up the process of paying off your loan.

How can I get the right personal loan?

Now that you're in the know about the types of personal loans out there and the different features to look for, you're probably wondering how you can land yourself a great deal. Follow these quick steps...

Step 1: Compare personal loans:

You can kickstart your personal loan comparison with Mozo's personal loan search tool or if you're a refinancer you can use our Switch & Save Calculator to compare your current personal loan with over 100 loans in the market right now and find out which ones will save you the most in interest and fees.

Step 2: Make your shortlist

Once you've punched in your numbers, our personal loan calculators will show you the loans most suited to your situation in one table. You can shortlist your favourites by clicking on the button on the left hand corner of the product info. And if you're struggling to decide between two loans, you can compare them side by side using our personal loan comparison calculator.

Step 3: Start your personal loan application

When you've picked the winner, the blue 'go to site' button will take you to the provider's application website and you can apply for the loan from the comfort of your own home. If you would like to start comparing personal loans please scroll up to the top of this page, alternatively if you want to know more about personal loans, head on over to our personal loan guides hub.

Where should you go for a personal loan?

The right personal loan for you will depend on your individual needs. The personal loan comparison table at the top of this page is a good place to start your search, or you can search Mozo's whole personal loan database.

Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian,,, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More personal loan FAQs

Do I need to provide security to get a personal loan?

This will depend on the type of loan you apply for. If you apply for a secured personal loan, you will have to provide an asset, like a car, to use as security against the loan. Although this does give your lender the right to repossess your asset if you default on the loan, the good news is secured personal loans typically come with lower rates.

On the other hand, if you opt for an unsecured personal loan, you won’t have to provide any security. However, unsecured personal loans usually come with higher interest rates.

What is a personal loan comparison rate?

In our personal loan table at the top of this page, the comparison rate sits to the right of the interest rate and is a quick way of comparing the cost of the personal loan once both the interest rate and fees are combined. The comparison rate is often coined as showing the 'true' cost of a loan.

Where can you find great personal loan rates? 

There’s no easy answer to this question, as it will depend on your financial circumstance and what you’re looking for. So to help you make a decision, we’ve jotted some pros and cons for different types of lenders.

Big banks

This includes the big 4 banks, Westpac, ANZ, NAB and CommBank, plus other major lenders like St George, Bankwest, HSBC and ING.

  • Pros: One of the big benefits of going with a major bank is thall you’ll be able to visit a local branch and speak to someone in person if you ever have an issue, which is not the case with some smaller or online lenders.
  • Cons: On the other hand, big banks generally charge higher fees and may not offer the most competitive rate on the market.

Credit Unions

An alternative to the big banks are credit unions. These are not for profit organisations that are funded by their members. 

  • Pros: Rather then passing profits back to shareholders, credit unions return their profits back to their members in the form of competitive rates and fees. 
  • Cons: However, in order to have access to these competitive rates, you will need to become a member and often pay a small fee.

Peer-to-peer (P2P)

A new type of lender shaking up the market are peer-to-peer (P2P) lenders. P2P operates on a different platform to traditional banking in which it connect investors with potential borrowers in an online marketplace. 

  • Pros: For a borrower, this means competitive rates and fees, while not having to deal with a financial institution. 
  • Cons: But you should know that P2P lenders set their rates on a tier based systems, meaning if you’ve got a clean credit history, you’re likely to get a better rate.

How fast can I access the money with a personal loan?

One misconception about personal loans is that applications can take a while to process. In reality, finding a fast personal loan is possible, and some lenders can have the funds in your bank account on the same day or within 2 business days.

How do I make loan repayments? 

While many lenders will offer different repayment schedules, personal loan repayments can typically be made on either a weekly, fortnightly or monthly basis. One easy way to make your repayments is to set up a direct debit from your bank account, this will also help ensure you won't ever miss a repayment or be charged a late payment fee.

But if for whatever reason you think you won’t be able to make a repayment, you’ll need to contact your lender ASAP to discuss an alternative arrangement.

Personal loans vs credit cards, which is better?

If you are looking at borrowing a small amount, say under $5,000 and are tossing up between plastic or a loan, here are some things to consider:

Personal Loans

  • Pros: Taking out a personal loan is a good option if you need a set amount of money upfront and plan to pay it off in an agreed timeframe. Plus the regular monthly repayment amount of a fixed interest rate personal loan makes it easy to budget.
  • Cons: If you want to pay off your fixed rate loan early you may incur a break cost fee.

Credit Cards

  • Pros: An interest free credit card can be a good option for smaller expenses like a holiday or outdoor reno, as you have the flexibility to pay as you go.
  • Cons: 0% intro credit cards often revert to a much higher rate once the "honeymoon" period has come to an end. So if you can't pay off the full balance before the interest free period comes to an end, you could feel the bite of high rates and end up paying more than with a low rate personal loan.

Purchases made with a personal loan, are there restrictions?

Personal loans are there to help you fund purchases that make more sense for you financially to pay off over a period of time than wait until you have the money saved upfront. This is why personal loans are a good option for Australians who want to purchase a new car, do a small home renovation like a kitchen or outdoor entertainment area or pay for a once off expense like a wedding.

Lenders generally don't have many restrictions on what you can use a personal loan for though you will be asked the purpose of the loan when you apply. The key think for a lender is making sure that you can meet repayments over the loan period. But a personal loan shouldn't be seen as way to supplement your salary to pay for everyday expenses. You'll want something to show for the money you've borrowed.

For some purchases, there are lenders that will actually give you a better interest rate than a regular personal loan. For instance, if you are planning on buying a new car, you'll find that many lenders will have sharper rates for new car purchases when you secure the car against the loan. Another loan purpose that is getting more popular with lenders in Australia is eco home improvements such as rainwater tanks, solar panels, insulation. Lenders view borrowing in these areas as smart investments and reward customers with lower interest rates. Check out the Mozo Experts Choice Personal Awards page to see which Australian lenders have received our expert's tick of approval.

Can I get a personal loan with bad credit?

While you are still usually able to get a personal loan with bad credit, it’s not always the best idea as you’ll often be charged super high rates and fees.Thanks to the rollout of comprehensive credit reporting (CCR), many lenders have already begun assessing a borrower’s credibility based on their credit history.

In this case, it could be worth repairing your credit history first before applying for a loan.

Can I get a personal loan if I'm a student?

Yes, some providers offer personal loans to students, but you’ll find there is a slight difference in terms of eligibility. With a student personal loan, there’s a little more flexibility with the loan application since students generally have lower incomes and little to no assets, compared to a borrower working full time and no longer studying.

But although approval for student personal loans does come with some breathing room, lenders tend to be a little stricter in terms of repayments and may only offer smaller loan amounts, to hep make sure you can comfortably pay back your debts.

Are pensioners eligible for personal loans? 

Yes, pensioners can take out a personal loan, but it can be tricky to get approved. If you are a pensioner looking to take out a personal loan, you’ll find that there are limited options. This is because it’s harder to prove to a lender that you can make your repayments if you no longer have a regular income. If you are struggling to get approval from a lender, you may want to consider Government Assistant Options.

However, if you’ve got some extra cash stashed away in an account that can be put towards your repayments, you might be in a better position to negotiate with a lender and have better chances of success.

Comprehensive credit reporting and loan approval

Australia is in the process of moving towards a comprehensive reporting system which enables lenders and other businesses to see your whole credit history when making a judgement on whether to lend you money. In the past, banks were only ever interested if you had missed a repayment or defaulted on a loan. Now they are able to get a sense of your whole financial picture such as when you make your bill repayments, whether you pay the whole bill or only part of it, how much of your credit limit you have available etc. The positive to this is that it rewards people who can demonstrate good savings and financial behaviour. Lenders can see that you will be able to pay back any money borrowed, in the timeframe that you said you would.

So now, when it comes time to thinking about getting a personal loan you really need to be much more prepared in the lead up by making sure your bills are kept up to date, you're demonstrating good savings habits, and comfortably meeting other financial commitments.

Before you apply for a loan, it's a good idea to get a copy of your credit report so that you can check it for any errors or know the areas that you might want to improve before you ask the bank for a loan.

There is no way of guaranteeing that you will be approved for any loan. All you can do is make sure that you've got the highest chance possible this means:

  • Crunching the numbers upfront. There is no point shopping around car yards looking at $40,000 cars if you can only afford to borrow $20,000. You need to know how much you can realistically afford to borrow and choose a time frame that will allow you to pay the loan back comfortably without causing financial stress. The good news is that most personal loans these days allow you to make additional repayments or pay out the loan early without penalty so you can always put more towards the loan if you choose.
  • Demonstrate good savings habits. Lenders want be confident that you can set goals and make payments towards these. Start by putting away money each week into a savings account, equivalent to what your repayment amount would be to demonstrate to yourself (and the bank) that you'll be ok with the responsibility of repaying the loan.
  • Keep on top of your bills. You know that a potential lender will be looking at your credit score so don't give them an excuse to knock you back. Keep your credit file in the best health possible by making sure you stay on top of bills, rent and expenses. Even if you have not done this in the past, this isn't a reason for you to be rejected. If lenders can see that you are making positive changes to the way you manage your finances they could be more likely to approve you now that comprehensive credit reporting is here, than in the past.

Information needed for a personal loan application

With most lenders now offering online loan applications, applying is pretty easy. In some instances you can even get the funds directly deposited into your account within a few days of loan application.

To make your personal loan application go as smoothly as possible, it's a good idea to have some of the essential information handy and that you'll meet any eligibility requirements.

If you are apply for a loan with a provider where you don't already have a personal history with, its likely that you'll need to supply them with personal information and identification details. Examples of this kind of information will be drivers licence number, passport details and utility bills in your name that show your current address.

Other information you are likely to need includes:

  • Proof of income (recent payslips or tax return)
  • List of other assets and liabilities
  • Proof of employment
  • Loan amount and loan term requested

What happens if my personal loan application gets rejected?

If you come to find that you have been rejected for a personal loan, do not apply immediately for another. Each time you’re rejected for a loan it will go on your credit history, which makes it even harder to get approval next time.

The first thing you’ll need to do is assess why you’ve been rejected. Some of the more common reasons for being rejected include a bad credit history, low income, unstable employment or for having too many loans already. These are all things that might impact your ability to repay your loan in the future.

Your next step should be to make adjustments to your application to ensure that you aren’t rejected again. This could mean cleaning up your credit history, reassessing your budget and borrowing capacity to make sure you can afford the loan or by trying to add a little more to your savings stash.

Personal loan traps to avoid

The thing to remember about any kind of personal credit, is that you will have to pay the money back eventually. Here are some tips to help you avoid some of the biggest borrowing traps:

  • Borrowing more than you need. Like the idea of a round the world first class trip, so do we, but just because the bank says you can borrow $50,000 to do it, it doesn't mean you should. Once that money is in your bank account it can be hard to stop the spending, so be really hard on yourself at the start of the process and only borrow the minimum amount you'll need and try and pay for any extra with savings.
  • Spending money on other things. Say you've budgeted $10,000 for a new deck and BBQ area, got your loan sorted out and the funds in your bank account. The quotes come in and it's $2000 cheaper than you expected. It can be pretty tempting to then use that money saved on other purchases but rather than falling into this trap out the money straight back into the loan by making a lump sum repayment. If the loan you choose has a redraw facility if you need to use this money later on down the track you can but don't pay interest on money you don't need.
  • Being late with repayments. We all lead busy lives and it can be hard keeping track of repayment dates which is why you shouldn't. Online banking, direct debit and payment notifications mean that you don't have to keep track anymore. You can either choose to have the bank take it out of your account directly or alert you when your payment is due. Not only will you avoid paying a late fee this way but you'll also keep you credit file squeaky clean.
  • Not fully understanding joint loan applicant responsibilities. A joint personal loan can be a good way to fund purchases that you may not be able to get on your own, but with a combined income you can. But if you do take out a joint loan, it is important to realise that you will have responsibility of repaying the loan even if the joint applicant can't. Be sure that you read the terms and conditions around any joint loan before signing on the dotted line.
  • Paying more interest than you need to. One of the best things about the Australian personal loan space is that there are many lenders to choose from. And with all this choice, means competition for your business. Don't get stuck paying high interest rates when you don't need to. The lower the interest rate, the lower your repayments so do yourself a favour and shop around. 

Personal Loan Reviews

NAB Personal Loan (Fixed, Unsecured) review
Overall 1/10
Awful service.

This bank is the worst ever, never would recommend to anybody. Screen your phone calls, harassed me, worst ever.

Read full review

This bank is the worst ever, never would recommend to anybody. Screen your phone calls, harassed me, worst ever.

Customer service
Sandra, New South Wales reviewed 7 days ago
NAB Personal Loan review
Overall 7/10
All good

They are ok.

Read full review

They are ok.

Customer service
Mark, Queensland reviewed 13 days ago
ANZ Personal Loan review
Overall 6/10
Not sure.

I like my bank but now I’m in need of help financially due to COVID I’m not having much success.

Read full review

I like my bank but now I’m in need of help financially due to COVID I’m not having much success.

Customer service
Kylie, Queensland reviewed 15 days ago