The best personal loans in Australia for 2021


Whether your fridge has just packed up on you or you have big plans to renovate your home, a personal loan could be one way to consider financing your purchases.

In a scenario where you have a ballpark figure for the amount that you need to borrow, a personal loan could potentially be a less expensive option than a credit card. That’s because generally speaking, personal loans come with lower interest rates than your average piece of plastic.

The thing is there are so many to choose from, how do you narrow down your options? Well, thankfully the Mozo Experts Choice Awards for Personal Loans are designed to help with this exact conundrum. Check out the 2021 winners below!

Our team of data experts have been assessing both secured and unsecured personal loans on offer in Australia for the past five years. For the 2021 awards the team trawled through a whopping 334 personal loans from 88 Australian lenders, to determine which ones really were living up to their marketing campaigns.

Some stand-out personal loans for 2021

OurMoneyMarket Low Rate Personal Loan
  • Mozo Experts Choice Award for best Unsecured Personal Loan

  • Fixed interest rates from 6.75% p.a. (6.96% p.a. comparison rate*)

  • Extra repayments allowed

With a Mozo Experts Choice Award under its belt, OurMoneyMarket’s Unsecured Personal Loan could be one to consider if you’re searching for a general purpose loan.

Although you will have to pay a $150 upfront fee and there is a $35 late repayment fee, OurMoneyMarket won’t charge you a service fee or exit fee. There is also no penalty for paying off your loan early. In fact, OurMoneyMarket actually allows extra repayments, meaning you could be done with your loan sooner than you think.

Interest rates are fixed for the entirety of the loan and start from as low as 6.75% p.a. (6.96% p.a. comparison rate*). Loans are available between $2,001 and $50,000 and loan terms range from one to seven years.

NOW Finance No Fee Unsecured Personal Loan
NOW Finance
  • Mozo Experts Choice Award for best Unsecured Personal Loan

  • Fixed interest rates from 6.95% p.a. (6.95% p.a. comparison rate*)

  • No fees on all loans

As part of the judging process for Unsecured Personal Loans, our research team calculated and compared the total cost of a $10,000 loan, repaid over three years. NOW Finance’s offering stood out from the crowd, as it does not charge an upfront fee. There is also no service fee or exit fee. Interest rates are competitive, starting from as low as 6.95% p.a. (6.95% p.a. comparison rate*) and loan terms range from two to seven years. 

^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 for the amounts and terms below, 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. ^Based on $10,000 over 3 years ^^Based on $30,000 over 5 years

^See information about the Mozo Experts Choice Personal loans Awards

Best Unsecured Personal Loan winners

For this particular awards category, Mozo’s research team compared interest rates and fees for general purpose loans. 

Winners were determined in one of two ways:

For loans where rates and fees vary depending on customers’ credit scores, the experts looked at the overall cost of a loan for 80 different customer types. For loans where rates and fees are the same, no matter what someone’s credit score or employment status, the team calculated the total cost of a $10,000 loan, repaid over three years and ranked the results from cheapest to most expensive.

After doing all of this research, the lenders who were deemed worthy of an award were:

Newcomer Alex also scooped up the 2021 Mozo Experts Choice Award for best New Loan Product for its unsecured personal loan product.

Best Secured Personal Loans

This award is designed to recognise market-leading secured personal loans, that is general purpose loans that require you to put an asset up as security. These types of loans generally come with more competitive interest rates.

Similar to the unsecured loans award, to determine the winners the research team ranked contenders from highest to lowest total costs for a $10,000 loan, repaid over three years. The three secured personal loans that came out on top were:

Best Green Personal Loans

Lastly, as part of the awards we looked at loans specifically designed to fund environmentally friendly home improvements. For example, the installation of solar panels, rainwater tanks and improved insulation.

Again the experts compared the total cost of a $10,000 loan, repaid over three years. After ranking from lowest to highest, the three loans that received an award were:

  • • Endeavour Mutual Bank - Green Loan

  • • Police Credit Union - Solar Eco Loan

  • • Sydney Mutual Bank - Green Loan

Head to our awards page to learn more about the Mozo Experts Choice Awards for Personal Loans. Or read through our methodology report, for a more in-depth understanding of how the awards are judged.