Personal Loans Snapshot: November 2021

Personal Loans Snapshot: November 2021

As we enter the final month of Spring, it’s time to take a look at our November 2021 personal loans market update.

Over the past month, we’ve seen a handful of personal loan interest rates and offer changes take place. Of these changes, most were rate cuts and a $250 application fee reinstatement from the Commonwealth Bank on its Secured Personal Loan.

In other news, the latest ABS Lending Indicators release reported a 0.4% increase in fixed-term personal loan commitments (seasonally adjusted) in September 2021. A slight change in direction compared to August’s 2.5% decrease in fixed-term personal loans compared to the month prior.

The ABS release also reported a 1.9% decrease in new loan commitments for road vehicles and a 9.4% drop in the value of new loan commitments for personal investment.

Personal loan interest rate changes:

Here’s what’s been happening lately in the world of personal loan interest rates and offer changes:

Interest rate cuts:

  • The Commonwealth Bank has cut 250 basis points off its variable rate Unsecured Personal Loan, bringing it down to 8.99% p.a. (9.89% p.a. comparison rate*) until 27 February 2022.
  • Gateway Bank has taken 20 basis points of its variable rate Eco Personal Loan which now sits at 5.75% p.a. (5.96% p.a. comparison rate*).
  • Newcastle Permanent has dropped its secured fixed rate Personal Loan by 80 basis points, bringing it to 5.89% p.a. (7.60% p.a. comparison rate*).
  • QBANK has reduced the variable rates on its Discounted Car Loan rate for cars under 5 years old by 86 basis points to 3.99% p.a. (4.63% p.a. comparison rate*) and its Car Loan rate for cars up to 10 years old by 100 basis points to 5.99% p.a. (6.62% p.a. comparison rate*).

Interest rate increases:

  • Loans.com.au has increased the rate on its Clean Green and New Car Loans by 32 basis points - to 3.29% p.a. (3.83% p.a. comparison rate*) for the Clean Green option and 3.99% p.a. (4.53% p.a. comparison rate*) for the New Car option. Both now also have rates that are set 100 basis points lower if the borrower owns their home.

Which lenders stand out?

Once again, we see that the lenders with the lowest personal loan interest rates in the Mozo database are Alex Bank, Community First Credit Union, Credit Union SA and Transport Mutual Credit Union - showing that smaller banks and credit unions are where it’s at if you want a more competitive rate.

How about big-name lenders?

Although we’ve seen some movement here and there among big bank personal loan interest rates, keep in mind that rates from the major banks are generally much higher than most competitor lenders.

Right now, the Commonwealth Bank’s Unsecured Variable Personal Loan interest rate sits just 9.00% p.a. - a fair jump compared to the lowest interest rate in the Mozo database of 3.99% p.a.

Variable rate big 4 personal loans:

Currently, the lowest big bank variable rate personal loan interest rate in the Mozo database is the NAB Personal Loan (Variable, Unsecured), at 6.99% p.a. (7.91% p.a. comparison rate*).

The highest big bank variable rate personal loan in the Mozo database, on the other hand, would be the Commonwealth Bank Unsecured Variable Personal Loan at 11.50% p.a. (12.38% p.a. comparison rate*).

Fixed rate big 4 personal loans:

When it comes to fixed-rate personal loans, the lowest big bank fixed rate in the Mozo database is none other than NAB’s Personal Loan (Fixed, Unsecured), which comes with a 3-year fixed rate of 6.99% p.a. (7.91% p.a. comparison rate*).

As for the highest fixed-rate big bank personal loan in the Mozo database, that would be the Commonwealth Bank’s Unsecured Personal Loan (Fixed), despite having recently cut its 3-year fixed rate down to 9.00% p.a. (9.90% p.a. comparison rate*).

Personal loan rates of note in November:

Written by: Rhianna Dews, Personal Loans writer, 1 November 2021.

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    interest rate
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    6.39% p.a.to 8.19% p.a.based on $30,000
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    Mozo Experts Choice 2022
    Personal Loan

    Unsecured, Fixed

    interest rate
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    4.99% p.a.to 14.99% p.a.
    4.99% p.a.to 14.99% p.a.based on $30,000
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  • placeholder
    Unsecured Personal Loan

    Fixed

    interest rate
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    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
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* 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.

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