Five tips to get an amazingly low rate on a personal loan

Personal loans are popular options for Australians looking to finance home improvements and other big-ticket expenses. With personal loan rates at record lows, they are also useful tools for consolidating and paying down debt. 

Cheap interest rates and lightning-fast online application and approval times are big drawcards, but there are a few important things to be aware of when hunting down a low personal loan rate. Here are five essential tips from the Mozo experts:

1. Use a good credit score to get a low rate

Online lenders reserve their best rates for borrowers with excellent credit, which is generally a score above 800. To boost your credit score, pay bills on time, make credit card repayments by the due date and try not to apply for too many credit or loan products.

2. Shop around and compare rates online

To find the most competitive personal loan rates, you’ll need to look beyond the big banks. Smaller online lenders have some of the lowest rates around for unsecured personal loans, with interest rates starting from under 6.00% for borrowers with excellent credit.

3. Use online rate estimator tools

Some lenders let you enter a few details online to get a quick personalised rate quote without affecting your credit score. It generally takes just a minute or two and you’ll get an estimate of the lowest rates available to you before you make an actual application. 

4. Don’t go overboard on loan amount

Before applying for a loan, check you can comfortably afford to make the repayments. Use an online calculator to see how much you can borrow and what the monthly repayments will be.

5. Steer clear of payday and fast cash loans

Payday loans might be quick and easy to organise, but in Australia the legal interest rate cap for these loans is an astounding 48% p.a. plus hefty upfront fees.

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LOW RATE PERSONAL LOANS JANUARY 2022 - rates updated daily

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure.
  • Sponsored Deal
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    Mozo Experts Choice 2022
    No Fee Unsecured Personal Loan (Fixed)

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.95% p.a.
    5.95% p.a.to 17.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured from the only lender with no fees and none of the bank. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Back to back winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021 & 2022^.

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $34,757.21 including fees.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2022
    Personal Loan

    Unsecured, Fixed

    interest rate
    comparison rate
    Monthly repayment
    4.99% p.a.to 14.99% p.a.
    4.99% p.a.to 14.99% p.a.based on $30,000
    over 5 years

    Excellent credit score needed to obtain this rate. Enjoy no-fuss personal loans of up to $30,000 with Alex Bank. No hidden early repayment penalties. Terms from 6 months to 5 years. Convenient, 100% online approval. Must be over 18 to be eligible (other eligibility criteria may apply). Winner of Mozo's Experts Choice Best New Loan Product award 2021^.

    Go to site
    Details
  • placeholder
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    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).

    Go to site
    Details
  • placeholder
    Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2022
    No Fee Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.95% p.a.
    5.95% p.a.to 17.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured from the only lender with no fees and none of the bank. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Back to back winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021 & 2022^.

    Go to site
    Details
  • placeholder
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.to 20.95% p.a.
    6.49% p.a.to 20.95% p.a.based on $30,000
    over 5 years

    Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. $0 establishment fee for loans from $5,000 to $30,000, a $595 establishment fee will be charged on loan amounts of $30,001 to $64,000. Offer valid to 31 Jan 2022.

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    Details
  • placeholder
    Standard Personal Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    7.99% p.a.
    8.62% p.a.based on $30,000
    over 5 years

    Heritage Bank discounted rates for borrowers with excellent credit. Available loans starting from $5,000 to $25,000. Your choice of loan terms up to five years. Extra repayments allowed, but may incur fees.

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    Details
  • placeholder
    Secured Car Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.79% p.a.
    7.16% p.a.based on $30,000
    over 5 years

    Reach your goal sooner without being penalised with $0 early payout fee. $0 monthly fees. Choose to make either monthly, fortnightly or weekly repayments to suit your income and budget. Winners of Australia's Best Large Credit Union in 2020.

    Go to site
    Details
  • placeholder
    Personal Loan

    Fixed, Secured

    interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.to 21.99% p.a.
    7.26% p.a.to 23.15% p.a.based on $30,000
    over 5 years

    Check your personal loan rate in under 3 mins with no impact to your credit score. Borrow from $3,000 with flexible repayment options. Apply for your loan in 10 minutes and get a response in 60 seconds. Extra repayments allowed.

    Go to site
    Details

Want to compare more personal loan options? Jump over to our personal loan hub for more providers as well as a bunch of handy guides and tips!

* 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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