Rate freeze: Big banks aren't budging on personal loans
Home loan rates, savings account rates, term deposit rates - they’re all dropping, spurred on by two consecutive Reserve Bank cuts in June and July. But what about personal loan rates?
According to Mozo figures, the average unsecured personal loan rate in the Mozo database has dropped three months since the June RBA cut, but reductions haven’t been quite as large as in home loans and deposit accounts, with the average rate falling just 0.16% since June 1.
While the new average unsecured personal loan rate in the Mozo database now sits at 11.08%, there have been a few notable absences at the rate drop party - the big four banks.
Over this period, the respective unsecured personal loan rates from ANZ, Commonwealth Bank, NAB and Westpac have been at a standstill - in fact, the only movement during this time was from NAB who actually lifted their rates by 2.00% on July 29.
RELATED: 3 in 5 Aussies miss the mark when repaying holiday credit card debt, Experian research finds
“The big banks are trying to manage their overall profitability and with home loan rates going down and deposit rates going down there’s a bit of a squeeze on their net interest margins, so if they don’t have to reduce a rate on a product they won’t,” said Mozo Banking Expert, Peter Marshall.
“The way banks generally treat unsecured lending is more like a credit card. So because they’re taking on the risk of letting you borrow a certain amount without having any security, their position is that it's far riskier and will therefore be priced accordingly.”
Compared to the current average unsecured personal loan rate in the Mozo database of 11.08%, ANZ’s Unsecured Personal Loan (Fixed) is currently the closest of the big four despite being 1.37% higher than the average.
According to Marshall, one way to secure a competitive personal loan rate is by looking at a secured option, especially from a smaller lender.
“There’s a pretty big premium for unsecured loans, so if you’ve got an asset, like a car, that you’re willing to secure against the loan then it may be worthwhile comparing secured loans - especially with secured rates from some smaller lenders hovering around the 5.00% mark.”
RELATED: Personal loans vs credit cards guide
Whether you’re planning some home renovations this spring or want some extra help paying for your summer holiday abroad, nailing down a competitive rate is a must if you’re looking for a personal loan as your funding option.
Start searching today by comparing some of the hot personal loan offers below, or head over to the Mozo personal loan comparison tables for an even more extensive list of secured and unsecured offers from a wide range of lenders.
Compare personal loans
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Low Rate Personal Loan
Excellent Credit, $5,000 - $75,000
interest rate
comparison rate
Monthly repayment6.57% p.a.to 8.39% p.a.7.19% p.a.to 8.75% p.a.based on $30,000
over 5 yearsCompetitive low rates for borrowers with excellent credit on 1-7 year loans from $5,000 up to $75,000, plus free extra repayments. 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.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
CompareCompare- interest rate
- 6.57% p.a.to 8.39% p.a.
- comparison rate
- 7.19% p.a.to 8.75% p.a.based on $30,000
over 5 years
- interest rate
- 6.57% p.a.to 8.39% p.a.
- comparison rate
- 7.19% p.a.to 8.75% p.a.based on $30,000
over 5 years
- Upfront fee
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rate for Excellent Credit. Establishment fee varies from $250 and is based on your OurMoneyMarket loan grade and total loan amount. The fee is added to the principal amount and paid over the loan term.
Read reviews and learn more about OurMoneyMarket personal loans
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Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment6.75% p.a.to 26.95% p.a.6.75% p.a.to 26.95% p.a.based on $30,000
over 5 yearsBorrow 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^'
Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.
CompareCompare- interest rate
- 6.75% p.a.to 26.95% p.a.
- comparison rate
- 6.75% p.a.to 26.95% p.a.based on $30,000
over 5 years
- interest rate
- 6.75% p.a.to 26.95% p.a.
- comparison rate
- 6.75% p.a.to 26.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $0.00
- Repayment options
- Weekly, Fortnightly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rates based on borrower with excellent credit score. Maximum 3 year term for loan amounts $8,000 or less.
Read reviews and learn more about NOW Finance personal loans
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Debt Consolidation Loan
$5,000-$75,000
interest rate
comparison rate
Monthly repayment6.57% p.a.to 18.99% p.a.7.19% p.a.to 19.39% p.a.based on $30,000
over 5 yearsCompetitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
CompareCompare- interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 19.39% p.a.based on $30,000
over 5 years
- interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 19.39% p.a.based on $30,000
over 5 years
- Upfront fee
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Interest rates may vary depending on assessment of application. Establishment fee varies from $250 and is based on your OurMoneyMarket loan grade and total loan amount. The fee is added to the principal amount and paid over the loan term.
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Unsecured Personal Loan
interest rate
comparison rate
Monthly repayment6.56% p.a.to 21.99% p.a.6.56% p.a.to 22.79% p.a.based on $30,000
over 5 yearsCompetitive 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.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.56% would cost $35,768.68 including fees.
CompareCompare- interest rate
- 6.56% p.a.to 21.99% p.a.
- comparison rate
- 6.56% p.a.to 22.79% p.a.based on $30,000
over 5 years
- interest rate
- 6.56% p.a.to 21.99% p.a.
- comparison rate
- 6.56% p.a.to 22.79% p.a.based on $30,000
over 5 years
- Upfront fee
- $499.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $0.00
- Repayment options
- Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- For 6 and 7 year loan terms, rates are available from Revolut on request. Establishment fees range from $0-$499, are quoted on application and added to the loan amount.
- Other restrictions
- -
Read reviews and learn more about Revolut personal loans
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Express Personal Loan
Secured
interest rate
comparison rate
Monthly repayment16.95% p.a.to 29.95% p.a.32.99% p.a.to 45.5% p.a.based on $10,000
over 3 yearsAccess 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.
Repayment terms from 2 years to 3 years. Representative example: a 3 year $10,000 loan at 16.95% would cost $14,952.03 including fees.
CompareCompare- interest rate
- 16.95% p.a.to 29.95% p.a.
- comparison rate
- 32.99% p.a.to 45.5% p.a.based on $10,000
over 3 years
- interest rate
- 16.95% p.a.to 29.95% p.a.
- comparison rate
- 32.99% p.a.to 45.5% p.a.based on $10,000
over 3 years
- Upfront fee
- $1,190.00
- Monthly fee
- $26.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $3,000.00
- Maximum loan amount
- $25,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 3 Years
- Security required
- Various, Vehicle
- Other benefits
- -
- Other restrictions
- Application fee from $125 to $1,190. Additional Risk Fee of $0 to $995 applies. Minimum loan term is 25 months.
Read reviews and learn more about Jacaranda Finance personal loans
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*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. WARNING: 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.
* 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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