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 debt. Compare loan interest rates on offer from Australian banking providers and find a bank loan for your needs.

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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. Once you’ve found a loan that suits your needs on Mozo, you can begin your online application by pressing the blue ‘Go to site’ button, where you’ll be taken straight to the bank’s online application form.

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

Simply plug your desired loan amount and loan term into the search tool on this page and we’ll give you an indication of how much your monthly repayments will be for each option in the table. 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.

Page last updated December 12, 2018

Bank personal loan comparisons on Mozo - rates updated daily Mozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.

Want more? Compare all 199 personal loans in the Mozo comparison engine.

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*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.

**Representative example figures and monthly repayment figures are estimates only, based on the advertised rate, mandatory fees, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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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.

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

Westpac
Westpac Personal Loan (Fixed, Unsecured) personal loan review
Overall
10/10
An exceptional bank too deal with

I have had two personal loans with Westpac and am extremely satisfied with the product and...

I have had two personal loans with Westpac and am extremely satisfied with the product and service given. On the odd occasion that I have needed a short extension on the due payment date this bank has been very understanding and happy too oblige to my request within a reasonable timeframe. I would strongly recommend this bank to anyone who is in a financial position to obtain a loan. The staff are courteous and professional, a pleasure to deal with.

Price
7/10
Features
-1/10
Customer service
10/10
Convenience
10/10
Trust
10/10

Richard | Victoria

reviewed 2 days ago

Commonwealth Bank
Commonwealth Bank Unsecured Personal Loan (Variable) personal loan review
Overall
5/10
Bad

No comment they are crooks.

No comment they are crooks.

Price
8/10
Features
6/10
Customer service
6/10
Convenience
7/10
Trust
5/10

Joseph | Victoria

reviewed 2 days ago

Commonwealth Bank
Commonwealth Bank personal loan review
Overall
5/10
More professional

Could be a bit more helpful.

Could be a bit more helpful.

Price
5/10
Features
0/10
Customer service
5/10
Convenience
7/10
Trust
7/10

Barbara | South Australia

reviewed 2 days ago

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