Aussies no longer want personal loans and this could be the reason why

By Ceyda Erem · · 3 min read
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Recent RBA data has revealed that the total value of personal loans Aussies have been borrowing has sunken to their lowest levels since 2015 by $4.8 billion. 

The data also found that personal loans were the second type of consumer lending to slip - credit cards have also taken a dive, with 810,000 fewer accounts held since January 2018. 

According to Mozo Banking Expert, Peter Marshall, the sudden cold shoulder given toward personal loans could be due to a lack of trust, on both sides of the equation. 

“Since the Banking Royal Commission, lenders have become more cautious with who they lend to, which could explain the decline in personal loans,” said Marshall. 

“On the other hand it could also be due to a cultural shift away from debt, as more and more Australians are working to purchase big ticket items by saving up for them.” 

Some of the most common uses for a personal loan include a new car, holiday, wedding or renovation, but they can also be used to consolidate debt. 

They also make for a more effective way to pay for larger expenses, when compared to a credit card says Marshall. 

“Unlike a credit card, a personal loan typically comes with a lower interest rate, and some have repayment options which can help you pay the loan off faster and save on interest,” said Marshall. 

“The trick to getting it right is finding the loan that best suits your needs, it’s more than just having a great rate.” 

So with that in mind, we thought it was worth having a quick recap on what Aussies should be looking for when it comes to choosing the right personal loan. 

Choose the right interest rate 

When it comes to personal loans, there are two types of interest rates to choose from: fixed and variable. A fixed interest rate means your repayment amount won’t change over the life of the loan, since your interest rate is ‘locked in’, while a variable rate has the power to change in accordance with the market. 

Secured vs unsecured 

Just like interest rates, there are two types of personal loans: secured and unsecured. With a secured personal loan, you’ll need to provide some type of security to be used as collateral. This could be your car or another asset you own. While this may sound a little daunting, keep in mind there a generally lower rates with secured personal loans and you wouldn’t lose the asset unless you were unable to make repayments.  

On the other hand, an unsecured personal loan means that you don’t have to offer any security, but you may be given a higher interest rate. 

Repayment features 

You may also have a few loan features attached to your personal loan, like an extra repayment or redraw facility. With an extra repayment option, you’ll be able to make additional repayments on your loan, which can help you save on interest and help you get out of debt sooner. Just keep in mind that you may be charged a fee to do this. A redraw facility then allows you to withdraw any of these extra repayments if you ever need quick cash for an unexpected expense. 

Watch out for fees 

Just like any financial product, there are a few fees that might come with taking out a personal loan. Application or service fees are some of the most common fees you may encounter when you start shopping around for personal loans. Other fees may include late payment or exit fees.

Think a personal loan could be the right choice for you? Head on over to our personal loan comparison tool or get started with some offers below. 

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 232 personal loans using the filters.
Last updated 14 November 2025 Important disclosures and comparison rate warning*

Personal loan comparisons on Mozo

  • Promoted

    Unsecured Personal Loan

    • Fixed
    Interest rate from
    5.95 % p.a.
    to
    26.95 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    26.95 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023, 2024 & 2025^'

  • Promoted

    Express Personal Loan

    • Secured
    Interest rate from
    16.95 % p.a.
    to
    29.95 % p.a.
    Comparison rate from
    32.99 % p.a.
    to
    45.5 % p.a.
    Based on $10,000 over 3 years
    Monthly repayment
    $713
    Go to site

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-36 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

  • Promoted

    Low Rate Personal Loan

    • Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes
    Interest rate from
    6.28 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    6.28 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $611
    Go to site

    Competitive low rates for borrowers with exceptional credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); no monthly account keeping fees, no exit fees and no early repayment fees. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

  • Unsecured Personal Loan

    • Fixed
    Interest rate from
    5.76 % p.a.
    to
    24.03 % p.a.
    Comparison rate from
    5.76 % p.a.
    to
    24.52 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $606
    Go to site

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

  • Debt Consolidation Loan

    Interest rate from
    5.76 % p.a.
    to
    24.03 % p.a.
    Comparison rate from
    5.76 % p.a.
    to
    24.52 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $606
    Go to site

    Roll multiple debts into one loan to streamline your finances with one set of repayments and one interest rate. Competitive fixed interest rates with no monthly or early repayment fees and flexible repayment options. Easy online application and funding in as little as 24 hours (subject to approval).

  • Unsecured Personal Loan

    • Fixed
    Interest rate from
    5.95 % p.a.
    to
    26.95 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    26.95 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023, 2024 & 2025^'

  • Unsecured Personal Loan

    Interest rate from
    6.17 % p.a.
    to
    21.99 % p.a.
    Comparison rate from
    6.17 % p.a.
    to
    22.79 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $610
    Go to site

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away.

  • Low Rate Personal Loan

    • Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes
    Interest rate from
    6.28 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    6.28 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $611
    Go to site

    Competitive low rates for borrowers with exceptional credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); no monthly account keeping fees, no exit fees and no early repayment fees. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

  • Secured Personal Loan

    • Exceptional Credit, $5,000-$75,000 or up to $100,000 for eligible purposes
    Interest rate from
    6.28 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    6.28 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $611
    Go to site

    Get a secured personal loan with competitive low rates for borrowers with exceptional credit. A simple fixed interest rate that can be repaid weekly, fortnightly or monthly, over 1 to 7 years (10 years for Green Loans). Managed entirely online, at any time. No monthly account keeping fees, no exit fees and no early repayment fees. Quick and easy, 100% online application. Establishment fees apply.

  • Personal Loan

    • Fixed
    Interest rate from
    8.99 % p.a.
    to
    29.39 % p.a.
    Comparison rate from
    10.11 % p.a.
    to
    30.29 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $636
    Go to site

    A Latitude Personal Loan offers flexibility and control for your major purchases, debt consolidation, or renovation plans. Get a personalised rate in two minutes without impacting your credit score. You'll enjoy a fixed rate, a repayment schedule that suits your budget. Plus, for Mozo customers, the $395 establishment fee is permanently waived. Latitude offers borrowing options from $5,000 over terms of 2 to 7 years. Repayments can be weekly, fortnightly, or monthly.

Showing 8 results from 232 personal loans. Use the filters to see more

* 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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