5 personal loans to help you hit your spending goals
From holidays to home renos, personal loans can help save the day when you’re short on cash and faced with a big upfront cost.
Whether you’re buying a new car, planning a trip, or a kitchen remodel to complete your home renovations – the right personal loan can let you access extra funds, hitting your spending goals now and paying gradually instead of waiting to save up the full amount. This could help with big purchases and little treats!
With so many lenders around, finding a good value personal loan can be tricky. So, to help get you closer to that new ride or family vacation, start your search with these personal loans.
NOW Finance - Unsecured Personal Loan
- Fixed rates from 6.75% p.a. (6.75% p.a. comparison rate*)
- No establishment fees, service fees or break costs
- 2023 Mozo Experts Choice Award-winner^
The NOW Finance Unsecured Personal Loan offers loan amounts from as little as $5,000 to as much as $50,000, with 18-month to 7-year loan terms. But that’s not all: this loan offers tailored interest rates according to your credit score, which means you could score a rate as low as 6.75% p.a. (6.75% p.a. comparison rate*) if you’re an eligible credit-worthy borrower. Being an unsecured loan, you won’t need to put up any assets as security against the loan. On top of this, the loan has no monthly fees, establishment fees or break costs and allows you to make extra repayments. But the real cherry on top is that it won a 2023 Mozo Experts Choice Award^ for best Excellent Credit Unsecured Personal Loan!
OurMoneyMarket - Low Rate Personal Loan
- Fixed rates from 6.57% p.a. (7.19% p.a. comparison rate*)
- Free extra repayments and fee-free redraw
- Quick and easy 100% online application
The OurMoneyMarket Low Rate Personal Loan offers different rate tiers based on your credit score - so creditworthy borrowers could receive competitive fixed interest rates from as low as 6.57% p.a. (7.19% p.a. comparison rate*). The loan lets customers borrow amounts between $2,001 and $75,000 with 1-7 year loan term options. On top of this the loan is also packed with flexible features, such as the ability to make free extra repayments, plus, a free redraw facility so you can dip into those extra repayments should you ever need some cash. While this loan doesn’t come with any service fees, there is a $250 minimum establishment fee to consider, and a $35 late payment fee should you ever miss a repayment.
Harmoney - Unsecured Personal Loan
- Unsecured rates from 6.95% p.a. (7.75% p.a. comparison rate*)
- Funds in as little as 24 hours after loan acceptance
- Borrow up to $70,000 with no early repayment fees
Online lender Harmoney has made a name for itself with its super fast, low cost, 100% online personal loans. The Harmoney Unsecured Personal Loan offers extremely low rates for borrowers with great credit and makes borrowing easy with an efficient online application and 24 hour cash turnaround. Fixed rates start at 6.95% p.a. (7.75% p.a. comparison rate*) for borrowers with excellent credit. Note that you'll need to earn above $30,000 a year to qualify.
loans.com.au - New Car Loan
- Fixed rates from 6.79% p.a. (7.91% p.a. comparison rate*)
- Flexible loan options for extra repayments
- Fast online application process
Get on the road with the New Car Loan Special from loans.com.au. This option for new and demo vehicles has fixed rates starting from 6.79% p.a. (7.91% p.a. comparison rate*), with the option to make extra repayments for no extra cost. You can borrow between $5,000 and $150,000 with loan terms up to 7 years. Make sure to keep in mind the $400 one-off application fee and an $8 monthly service fee. Applications are 100% online, with assessments usually taking under 24 hours to complete.
OurMoneyMarket - Car Loan
- Fixed rates from 6.57% p.a. (7.19% comparison rate*) for borrowers with excellent credit
- No monthly account fees and no early repayment fees
- Fast online application
Looking for a low rate car loan to get behind the wheel of your dream car sooner? With OurMoneyMarket’s competitive fixed loan rates, starting at 6.57% p.a. (7.19% p.a. comparison rate*) for borrowers with excellent credit, you'll be able to borrow between $5,000 and $75,000 and get on the road faster than ever. There are no monthly account fees and no early repayment fees to worry about. Plus, you can enjoy a quick and easy 100% online application.
What is the cheapest personal loan?
There's no hard and fast rule when it comes to which personal loan is cheapest, as a lot of it will depend on the amount you are looking to borrow, the features you are looking for in a loan, and the interest rate you are offered for a loan.
Speaking generally, a shorter term loan will cost you less in interest than a long term loan. You can compare two loans with the Mozo person loan comparison calculator, showing you how much difference there will be in interest and fees charged on top of the amount that you borrow.
Obviously a $50,000 loan is going to tend to cost you more than a $2,000 loan as you are going to need to repay significantly more money! That said, make sure you look into the fees charged on the loan through its life (particularly extra repayment fees and monthly service fees, which can really stack up).
Most loans operate with risk-based rates, as well. This means that your excellent credit score could see you scoring a significantly lower interest rate on a loan than the same loan might offer for someone with bad credit.
You can look at the Mozo Personal Loans Experts Choice Awards to find the annual awards for the best value in a range of personal loan categories.
What fees can I expect to pay with a personal loan?
Every personal loan will have its own fees, so make sure you've look closely at the terms and conditions before you request a rate.
Some fees to anticipate include:
- Application or establishment fees - some personal loans might charge a significant application fee. To find cheaper loans, avoid options that charge a hefty fee here.
- Monthly fees - also called service fees, these are regular fees charged on your loan.
- Extra repayment fees - some loans will charge you for the convenience of being able to make additional payments to your loan, or cap the amount you are able to contribute. This can be a hindrance in the long term, as extra repayments enable you to pay off your loan faster, and as a result, pay less interest.
- Late repayment fees - like with almost any service that is billed, late payments will usually net you a small charge. All the more reason to make sure you line up your instalments with your pay and set up automatic billing.
- Paper billing fees - in order to move towards a lower emissions future, many lenders will charge a small fee to send you a paper bill. If you think you can manage with a digital copy, you'll save a few dollars here and there.
- Redraw fees - a redraw facility allows you to withdraw extra money already paid on a loan. Many lenders don't allow this, or charge a considerable fee for the ability to do so.
- Early exit fee - also called a break fee or an early repayment fee, these fees can be a real frustration as they penalise you for wanting to pay off your loan early (and pay less total interest). To make up for not carrying the loan to its full term, this charge is to make back some of the lost interest to the lender. Being able to pay off a loan early without an exorbitant fee is a great feature.
How can I make a personal loan more affordable?
In order to make your personal loan feel more approachable and affordable, it's important to budget appropriately to factor in all of the payments you need to make - including your loan repayments. You can use Mozo's budget calculator to program in your regular spend.
The Mozo personal loan repayments calculator will help you work out how much your repayments will be for the loan you're looking to take out, and you can add that information into your financial planning.
Opting for a loan that has lower fees in places you're likely to accumulate them is more likely to keep your loan feeling more manageable.
What is the best personal loan?
There is no one answer as to the best personal loan, especially if you're looking for the best cheap personal loan - this all comes down to your personal financial circumstances and your personal goals. The best way to find your best fit is to do your research and compare personal loans.
To help you get started, take a look at some of the above loans, or browse some of Mozo's best personal loans.
* 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
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