A bank personal loan can help you to fund a new car, take a much needed holiday or even help you to get on top of lingering debt. Banks offer personal loans of many different sizes and can typically lend more than peer to peer lenders, with loans ranging from a few hundred dollars to upwards of $100,000. It’s a good idea to compare personal loans using the comparison rate, as it takes into account fees and interest rate to give you an indication of the true cost of a loan. Start comparing bank loans now.
Fixed
Borrow 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. Winner of Mozo’s Experts Choice Unsecured Personal Loan 2021 award.
Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $34,757.21 including fees.
Read our Mozo Review to learn more about the NOW Finance No Fee Unsecured Personal Loan
Fixed, Unsecured
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.99% would cost $36,383.67 including fees.
Borrow from $5,000 to $55,000 with a 1 - 7 year flexible loan term with NAB. Get competitive low rates for excellent credit. Enjoy no fees for extra repayments and no early exit fees. NAB accepts documents online so you can get your funds fast.
Read our Mozo Review to learn more about the NAB Personal Loan
Fixed
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 9.39% would cost $37,881.66 including fees.
Borrow from $5,000 to $50,000 with low rates for great credit. No account keeping fees. Free extra repayments and redraw facility. Same day approval may be possible. Winner of Mozo's Experts Choice Award for Australia's Best Large Credit Union 2021^.
Read our Mozo Review to learn more about the Great Southern Bank Unsecured Personal Loan
Fixed, Unsecured
Terms from 1 to 7 years. Representative example: a n/a year $0 loan at 7.99% would cost $6,988.90 including fees.
Heritage Bank discounted rates for borrowers with excellent credit. Available loans starting from $5,000 to $25,000. Your choice of loan terms up to five years. Extra repayments allowed, but may incur fees.
Read our Mozo Review to learn more about the Heritage Bank Standard Personal Loan
^See information about the Mozo Experts Choice Personal loans Awards
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If you're considering taking out a personal loan then you're probably also wondering how you find the loan that's right for you.
The good news is that in Australia, you've got a lot of choice when it comes to selecting the bank you want to go with for your personal loan. Don't get fooled into thinking that the bank you have your regular everyday transaction account with is your only choice when it comes to securing a loan. If you've got a good credit history you should definitely shop around and find a bank offering competitive loan interest rates and fees.
In addition to the four major banks - ANZ, CommBank, NAB and Westpac -challenger banks like Citibank, HSBC, ME and Bankwest will loan money for personal use, often at competitive rates.
Another option to borrow money is choosing a mutual bank. Mutual banks are mostly former credit unions and may offer low rates for their members. Providers like Bank Australia and Heritage bank are lenders that fall into this category. You don't need to live near a branch and most mutual banks have open membership so you won't need to work in a particular industry to get access to their great rates and service.
The best loan option for you will depend on a range of things from the amount of money you want to borrow to the length of time that you'll need to repay back your loan.
Most banks these days let you apply for a personal loan online, so whereas in the past you needed to have a branch locally, you don't really need to be concerned with this anymore. You can bank anywhere, anytime and do everything you need with your computer or smartphone.
What you should really focus on when taking out any loan is the interest rate, fees and the flexibility the bank offers.
Read on to find all the need-to-knows about taking out a bank personal loan.
If you’re on the hunt for a great personal loan from one of Australia’s banks, there are a few things you should know before your start your search. From secured or unsecured loans, to fixed or variable interest rates, the choice is yours, and finding a great bank loan starts with figuring out what kind of loan you need.
Your next step is comparing personal loans from different banks based on their interest rate, as well as their features. Look out for a personal loan with a low comparison rate, low fees, flexible repayment options, an extra repayment facility and the ability to redraw if need be.
Thanks to the wonders of modern technology, you no longer need to visit a bank branch in order to take out a bank loan, you can now apply and get approved online.
Remember to have on hand personal documents and statements like a form of ID, proof of income and financial statements before you apply. Even though you’ll be applying online, you’re likely to still have customer support like chat bots or phone support to help you if you run in to questions during the application process.
Whether you’re after a small personal loan or a big one, banks offer personal loans of many different sizes. Banks can typically lend more than P2P lenders, with personal loans ranging from a few hundred dollars to upwards of $100,000 with approval. Of course, how much you’ll be able to borrow will depend on your financial circumstances so try our loan repayments calculator to get an indication of how much you’ll be able to afford.
It’s a good idea to compare personal loans using the comparison rate, as this rate takes into account the fees as well as the interest rate to give you an indication of the true cost of a loan. Once you’ve reviewed the repayment estimates from different banks, next is to compare the features such as extra repayments or repayment frequency options so that you can find the best option for you. Read our guide for more info about demystifying personal loan fees and features.
Most banks will have a range of loan options for personal lending. Here is the main types of personal loans.
When it comes to personal loans, you'll typically have two options. Ultimately, the type of rate you choose will depend on your circumstances, but it's always a good idea to weigh up your options:
Fixed interest rate - A fixed interest rate will lock in the rate over the course of your loan. This means that your rate will not change regardless of the market's fluctuation, leaving you to budget more effectively.
Variable interest rate - A variable interest rate will change over time, depending on fluctuations in the market.
When you compare or apply for a personal loan you will also notice a rate called a Comparison rate. This rate is important and should be the rate you use to compare your choices as it shows you the true cost of the loan as it takes into account a number of factors including ongoing fees, other charges and the provider's interest rate.
Of course, the key feature of any personal loan is the interest rate as this will determine just how much money you'll have to pay the bank to lend you the money but it's also a good idea to watch out for the following when comparing bank personal loans:
Now let's get to the bit that no one enjoys, fees. Here are some common fees you could be paying if you decide to take out a bank personal loan:
Like applying for a home loan, you will need several pieces of documentation, these include:
#1 Educate yourself - Before you head to a bank, you should already have a good idea of the amount you can borrow and what you repayments might look like. You can use our personal loan repayment calculator for this.
#2 Go in with a positive credit file - Another way to prove yourself as 'credible' to a bank is by maintaining a positive credit history. Request a copy of your credit file to make sure there aren't any blemishes on your file, then take care of any outstanding debt along with paying bills on time.
#3 Only apply for the amount you need - While this may seem obvious, applying for an amount more than you need may seem risky to your bank. Keep in mind that your credit history and the amount you are applying for can mean the difference between being approved or declined, so avoid the temptation to borrow more than you need.
#4 Understand the risks - Like any financial decision, things have the potential to go wrong. As you prepare all necessary documentation before applying, you'll need to consider all risks associated with a personal loan. For instance, while it's a smart idea to set up automatic payments, make sure that you'll have enough leftover for your daily expenses.
Do not use this bank, applied for a personal loan, they advertise simple and easy, what a joke, supplied documentation to them, looks like I was dealing with idiots overseas as most of my correspondence was online due to work commitments. Instead of looking over the application and telling me what they wanted me to supply first go instead of coming back in drubs and drabs asking for information, I supply it and they tell me they didn’t receive it, but I have proof it went through but anyway. Not reading emails properly or even knowing what they are asking for when it’s right in front of them. At one point some one in their assessing team sent an email and said application was not successful. Next day I get an email from them saying we need more information??? I said you knocked the application back and the guys says oh no we haven’t finished processing it?? I then emailed them what they said and they apologised for confusion, but still going back and forth. Not well trained staff, either I ended up pulling the application and went to another bank and got the loan in 24 hours. Do not waste your time and energy!
Read full reviewDo not use this bank, applied for a personal loan, they advertise simple and easy, what a joke, supplied documentation to them, looks like I was dealing with idiots overseas as most of my correspondence was online due to work commitments. Instead of looking over the application and telling me what they wanted me to supply first go instead of coming back in drubs and drabs asking for information, I supply it and they tell me they didn’t receive it, but I have proof it went through but anyway. Not reading emails properly or even knowing what they are asking for when it’s right in front of them. At one point some one in their assessing team sent an email and said application was not successful. Next day I get an email from them saying we need more information??? I said you knocked the application back and the guys says oh no we haven’t finished processing it?? I then emailed them what they said and they apologised for confusion, but still going back and forth. Not well trained staff, either I ended up pulling the application and went to another bank and got the loan in 24 hours. Do not waste your time and energy!
Corporate robots, don't lend to singles the two percent deposit scheme is rubbish, I tick all boxes and can afford the loan but cannot get because of unrealistic lending criteria. All banks.
Read full reviewCorporate robots, don't lend to singles the two percent deposit scheme is rubbish, I tick all boxes and can afford the loan but cannot get because of unrealistic lending criteria. All banks.
Don’t believe the TV commercials, Jackson was dismissive and short. Pretty ordinary all over.
Read full reviewDon’t believe the TV commercials, Jackson was dismissive and short. Pretty ordinary all over.
