Rate freeze: Big banks aren't budging on personal loans

By Tom Watson · · 5 min read
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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.

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Last updated 18 July 2025 Important disclosures and comparison rate warning*
  • Low Rate Personal Loan

    Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes

    interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    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.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.28% would cost $35,033.88 including fees.

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  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    16.95% p.a.to 29.95% p.a.
    32.99% p.a.to 45.5% p.a.based on $10,000
    over 3 years

    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.

    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.

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  • Secured Personal Loan

    Exceptional Credit, $5,000-$75,000

    interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    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.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.28% would cost $35,033.88 including fees.

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.45% p.a.to 26.95% p.a.
    6.45% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    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^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.45% would cost $35,176.93 including fees.

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    Details

*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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