bank personal loans

Bank Personal loans

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.

Fact Checked

Bank personal loan comparisons on Mozo - last updated 19 October 2021

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure.
  • Sponsored Deal
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    Mozo Experts Choice 2021
    No Fee Unsecured Personal Loan (Fixed)

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.95% p.a.
    5.95% p.a.to 17.95% p.a.based on $30,000
    over 5 years

    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.

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    Details
  • Hot DealEarn two Qantas Points for each dollar of your approved NAB Personal Loan amount when you borrow anywhere from $5000 and up to $55000. Online only offer ends 30 Sept 2021
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    Personal Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    6.99% p.a.to 18.99% p.a.
    7.91% p.a.to 19.83% p.a.based on $30,000
    over 5 years

    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.

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    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    9.39% p.a.
    9.64% p.a.based on $30,000
    over 5 years

    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^.

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    Standard Personal Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    7.99% p.a.
    8.62% p.a.based on $30,000
    over 5 years

    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.

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^See information about the Mozo Experts Choice Personal loans Awards

*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.

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.

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Lenders on our site have strict lending criteria. We want you to find the right loan so before proceeding with a loan application, be sure that at a minimum you:

If you don’t know your credit rating, try using our rate matcher tool, where we run a free credit check to help you find a loan you may qualify for.

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FAQ

Bank personal loans: What you need to know

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.

Big bank or mutual bank loans?

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.

Finding the best 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. 

Applying for bank personal loans online

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. 

What size personal loans can you get from a bank?

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. 

How to compare bank personal loans

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.

Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More  FAQs about bank personal loans 

What kind of personal loans do banks provide?

Most banks will have a range of loan options for personal lending. Here is the main types of personal loans.

  • Secured - Own a house or car? Then you've unintentionally bought yourself some more borrowing power with the banks and potentially a better rate with lower fees! But there is a catch to this - with a secured loan you willing must use those assets as security for the loan. As this is a risky move, it's important to calculate your potential repayments to ensure that you'll be able to repay the loan.
  • Unsecured - On the other hand, an unsecured loan does not require any security. But it does mean you'll generally have to pass on the most competitive interest rate. You'll still need to stay on top of your repayments, as your provider will still hold you accountable.
  • Debt consolidation - A debt consolidation loan can works by combining debt from different sources (credit card, car loan, store card) into a single, low rate loan - saving you on multiple fees, but more importantly, paying multiple bills.

What kind of interest rates are available with a bank personal loan?

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.

What are the key features of a bank personal loan?

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:

  • Flexible repayment options - Give yourself some breathing room with a flexible repayment schedule. For instance, if you choose to repay $600 on a monthly basis, over 12 months, you'll have repaid $7,200. But if you opted for the $300 fortnightly repayment, you'll have repaid $7,800 - an extra $500 on your loan!
  • Extra repayment facility - Because you never know when you'll suddenly fall into some money. Having the option to make extra, lump sum payments will help you reduce the length of your loan. Keep in mind though, fixed rate loans will often not allow extra repayments or, will have a limit on the number of times you can do this throughout the year.
  • Redraw facility - Speaking of those extra repayments, wouldn't it be great if you could take it back whenever you needed it? That's where a redraw facility come in - allowing you redraw any extra repayments you've made over the course of your loan. However, it does mean that you will be extending the lifespan of your loan.

Are there any fees with a bank personal loan?

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:

  • Upfront fee - This is the fee you could be expected to pay once you apply for a personal loan and can be anywhere between $0 - $600. If the loan you're applying for has a hefty upfront free, ensure that you're making up for it with a competitive interest rate and handy loan features.
  • Ongoing fees - Many banks will also charge ongoing fees, such as monthly fees. While these may appear as minor, they can add up over time.
  • Late payment fee - While this isn't a compulsory fee, it's important to keep in mind. Late payment fees are usually around $30 and are not based on your loan amount. One way to avoid paying late payment fees is setting up automatic payments through your online banking account. This way, you won't ever need to remind yourself about making a repayment.
  • Break cost fee - A break cost fee is a fee charged sometimes when you pay out a fixed rate loan early. While exit fees were banned on variable rate loans in 2011, a break cost fee couple still apply fixed rate loans depending on the length left of the loan.

What do I need to apply for a bank personal loan?

Like applying for a home loan, you will need several pieces of documentation, these include:

  • Proof of income - You'll need proof of a regular income (usually 3 months worth of payslips) to show the bank that you'll be able to keep up with your repayments.
  • Financial statements - Proof of savings is also essential, as it'll help you appear more credible. Make sure to bring along the last 3 months bank statements.
  • Identification - This is a no-brainer - the bank will need to know who you are in order to issue the loan, so have your birth certificate and other forms of identification ready.

Any tips for getting bank loan approval?

#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.

Personal Loan Reviews

ANZ Unsecured Personal Loan
Overall 1/10
Worse Bank

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 review

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!

Price
3/10
Features
3/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Adrian, New South Wales, reviewed 4 days ago
Commonwealth Bank Secured Personal Loan (Fixed)
Overall 1/10
Banks grubs

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 review

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.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Mick, Victoria, reviewed 7 days ago
SocietyOne Unsecured Personal Loan (Fixed)
Overall 1/10
Don’t bother believing the TV ads

Don’t believe the TV commercials, Jackson was dismissive and short. Pretty ordinary all over.

Read full review

Don’t believe the TV commercials, Jackson was dismissive and short. Pretty ordinary all over.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
6/10
Trust
1/10
Less
Jim, Queensland, reviewed 13 days ago

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