Top personal loan tips and traps

There are a lot of ways to make a personal loan work for you, whether you're looking to consolidate debt, finance long-planned home projects or simply access some extra cash. And in these economically tough times, plenty of Aussies could do with a helping hand.
A low rate personal loan from a trusted bank or non-bank lender is a far better option than opting for a payday or fast cash loan, and personal loan rates are now more accessible than ever. But there are plenty of things that can go awry in the process of taking out a loan and paying it off.
So if you're considering a personal loan, read on for the Mozo expert guide to the top tips and traps of personal loans. Then, check our comparison of low rate personal loans from bank and non-bank lenders in Australia.
Expert personal loan tips:
Look beyond the big banks to find the most competitive rates. Smaller online lenders have some of the lowest rates on the market, with rates starting from under 10% for borrowers with good credit.
Save on interest with fee-free extra repayments. Every extra cent you put into paying off your loan will reduce the interest you pay. Just watch out for fees, as some lenders will charge you for extra repayments.
Pay off lingering debt with a debt consolidation loan. If you've got multiple credit card or small loans and are getting lost in the paperwork and late repayment penalties, consider combining smaller debts into one lower rate debt consolidation loan.
Avoid these personal loan traps:
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.
Choose the right fixed loan term up front to avoid break cost fees. Ensure you don't lose out savings made through early repayment by choosing your loan term carefully and finding a loan that will allow for extra repayments.
Check your consolidated loan timeline. You might have scored a lower interest rate to reduce your repayments, but if the loan term is stretched out much longer than the individual debts were, you could end up paying more interest over the life of the loan.
If you're wondering what kind of loan you can take out, then read our guide to personal loan eligibility and check out the loan options below to start your research.
LOW RATE PERSONAL LOANS - last updated 14 May 2022
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Sponsored Deal
Mozo experts choice awards won:
- Unsecured Personal Loan - 2022
Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.95% p.a.to 19.95% p.a.5.95% p.a.to 19.95% p.a.based on $30,000
over 5 yearsBorrow 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^.
Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $34,757.21 including fees.
CompareCompare- interest rate
- 5.95% p.a.to 19.95% p.a.
- comparison rate
- 5.95% p.a.to 19.95% p.a.based on $30,000
over 5 years
- interest rate
- 5.95% p.a.to 19.95% p.a.
- comparison rate
- 5.95% p.a.to 19.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- 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 our Mozo Review to learn more about the NOW Finance Unsecured Personal Loan
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Featured Product Hot Deal A special low rate starting from 5.45% (6.07% comparison rate)
Low Rate Personal Loan
Excellent Credit
interest rate
comparison rate
Monthly repayment5.45% p.a.to 8.48% p.a.6.07% p.a.to 8.84% p.a.based on $30,000
over 5 yearsOurMoneyMarket offer competitive low rates for borrowers with excellent credit on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award^.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.45% would cost $34,590.57 including fees.
CompareCompare- interest rate
- 5.45% p.a.to 8.48% p.a.
- comparison rate
- 6.07% p.a.to 8.84% p.a.based on $30,000
over 5 years
- interest rate
- 5.45% p.a.to 8.48% p.a.
- comparison rate
- 6.07% p.a.to 8.84% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
- 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
- $2,001.00
- 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 our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
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Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.35% p.a.to 19.09% p.a.6.14% p.a.to 19.99% p.a.based on $30,000
over 5 yearsFast, 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).
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.
CompareCompare- interest rate
- 5.35% p.a.to 19.09% p.a.
- comparison rate
- 6.14% p.a.to 19.99% p.a.based on $30,000
over 5 years
- interest rate
- 5.35% p.a.to 19.09% p.a.
- comparison rate
- 6.14% p.a.to 19.99% p.a.based on $30,000
over 5 years
- Upfront fee
- $575
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $15.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $2,000.00
- Maximum loan amount
- $70,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- Establishment fee is $275 for loans under $5,000.
- Other restrictions
- Establishment fee is added to the loan amount and interest is charged on the total amount.
Read our Mozo Review to learn more about the Harmoney Unsecured Personal Loan
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Home Improvement Loan
Fixed, Unsecured
interest rate
comparison rate
Monthly repayment5.75% p.a.5.96% p.a.based on $30,000
over 5 yearsHandypay 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.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.
CompareCompare- interest rate
- 5.75% p.a.
- comparison rate
- 5.96% p.a.based on $30,000
over 5 years
- interest rate
- 5.75% p.a.
- comparison rate
- 5.96% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $2,000.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- Other restrictions
Read our Mozo Review to learn more about the Handypay Home Improvement Loan
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Personal Loan
Unsecured, Fixed, Excellent Credit
interest rate
comparison rate
Monthly repayment6.39% p.a.to 7.89% p.a.6.39% p.a.to 8.49% p.a.based on $30,000
over 5 yearsWith low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).
Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.
CompareCompare- interest rate
- 6.39% p.a.to 7.89% p.a.
- comparison rate
- 6.39% p.a.to 8.49% p.a.based on $30,000
over 5 years
- interest rate
- 6.39% p.a.to 7.89% p.a.
- comparison rate
- 6.39% p.a.to 8.49% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $30.00
- Repayment options
- Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Up front fee may be higher than shown depending on your application.
- Other restrictions
- Displayed interest rate is for customers with an excellent credit history. Application fees may be higher depending on loan amount.
Read our Mozo Review to learn more about the Plenti Personal Loan
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Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.95% p.a.to 17.45% p.a.6.79% p.a.to 17.86% p.a.based on $30,000
over 5 yearsWisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.
Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.
CompareCompare- interest rate
- 5.95% p.a.to 17.45% p.a.
- comparison rate
- 6.79% p.a.to 17.86% p.a.based on $30,000
over 5 years
- interest rate
- 5.95% p.a.to 17.45% p.a.
- comparison rate
- 6.79% p.a.to 17.86% p.a.based on $30,000
over 5 years
- Upfront fee
- $595
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $25.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $64,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Other restrictions
Read our Mozo Review to learn more about the Wisr Unsecured Personal Loan
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Personal Loan
Variable
interest rate
comparison rate
Monthly repayment5.75% p.a.to 25.99% p.a.6.68% p.a.to 29.2% p.a.based on $30,000
over 5 yearsRepayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,370.18 including fees.
CompareCompare- interest rate
- 5.75% p.a.to 25.99% p.a.
- comparison rate
- 6.68% p.a.to 29.2% p.a.based on $30,000
over 5 years
- interest rate
- 5.75% p.a.to 25.99% p.a.
- comparison rate
- 6.68% p.a.to 29.2% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $13.00
- Exit fee
- $0.00
- Late payment fee
- $40.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- -
- Minimum loan term
- 2 Years
- Maximum loan term
- 7 Years
- Security required
- Unsecured, Vehicle
- Other benefits
- Other restrictions
- Establishment fee added to your loan amount ranging from 0-5% based on our credit rating.
Read our Mozo Review to learn more about the Latitude Personal Loan
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Featured Product
Mozo experts choice awards won:
- Unsecured Personal Loan - 2022
Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.95% p.a.to 19.95% p.a.5.95% p.a.to 19.95% p.a.based on $30,000
over 5 yearsBorrow 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^.
Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $34,757.21 including fees.
CompareCompare- interest rate
- 5.95% p.a.to 19.95% p.a.
- comparison rate
- 5.95% p.a.to 19.95% p.a.based on $30,000
over 5 years
- interest rate
- 5.95% p.a.to 19.95% p.a.
- comparison rate
- 5.95% p.a.to 19.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- 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 our Mozo Review to learn more about the NOW Finance Unsecured Personal Loan
-
Mozo experts choice awards won:
- Unsecured Personal Loan - 2022
Personal Loan
Unsecured, Fixed
interest rate
comparison rate
Monthly repayment4.99% p.a.to 14.99% p.a.4.99% p.a.to 14.99% p.a.based on $30,000
over 5 yearsExcellent 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 Unsecured Personal Loan award 2022^.
Repayment terms from 1 year to 5 years. Representative example: a 5 year $30,000 loan at 4.99% would cost $33,959.97 including fees.
CompareCompare- interest rate
- 4.99% p.a.to 14.99% p.a.
- comparison rate
- 4.99% p.a.to 14.99% p.a.based on $30,000
over 5 years
- interest rate
- 4.99% p.a.to 14.99% p.a.
- comparison rate
- 4.99% p.a.to 14.99% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- -
- Late payment fee
- $20.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- Minimum loan amount
- $2,100.00
- Maximum loan amount
- $30,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Other restrictions
Read our Mozo Review to learn more about the Alex Bank Personal Loan
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Green Loan
interest rate
comparison rate
Monthly repayment5.79% p.a.6.36% p.a.based on $30,000
over 5 yearsHandypay offer flexible green loans up to $75,000 for Excellent Credit or better. Handypay is a specialist home improvement plan provider.
Repayment terms from 1 year to 10 years. Representative example: a 5 year $30,000 loan at 5.79% would cost $34,873.55 including fees.
CompareCompare- interest rate
- 5.79% p.a.
- comparison rate
- 6.36% p.a.based on $30,000
over 5 years
- interest rate
- 5.79% p.a.
- comparison rate
- 6.36% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 10 Years
- Security required
- Unsecured
- Other benefits
- Can be used for verifiable green initiatives e.g. solar panels, solar battery, solar inverters, solar heating and cooling, rainwater tanks or energy efficient renovations.
- Other restrictions
- Rate for the first 36 months, reverting to a standard offer from 6.29% p.a. (comparison rate 6.80% p.a.) for the remaining term.
Read our Mozo Review to learn more about the Handypay Green Loan
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Featured Product
Low Rate Personal Loan
Very Good Credit
interest rate
comparison rate
Monthly repayment8.49% p.a.to 11.19% p.a.8.85% p.a.to 11.56% p.a.based on $30,000
over 5 yearsCompetitive low rates on loans up to $75,000 for excellent credit. Free extra repayments. Fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award^.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.49% would cost $37,171.08 including fees.
CompareCompare- interest rate
- 8.49% p.a.to 11.19% p.a.
- comparison rate
- 8.85% p.a.to 11.56% p.a.based on $30,000
over 5 years
- interest rate
- 8.49% p.a.to 11.19% p.a.
- comparison rate
- 8.85% p.a.to 11.56% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
- 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
- $2,001.00
- 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 Very Good 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 our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal 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
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.