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.

Bank personal loan comparisons on Mozo - page last updated October 30, 2020

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years

  • 12.69% p.a.to 18.99% p.a.

    13.56% 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 12.69% would cost $41,420.45 including fees.

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    Details
  • 10.50% p.a.

    11.38% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 10.50% would cost $39,439.02 including fees.

      Compare
    Details

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Personal loan resources

Reviews, news, tips and guides to help find the best personal loan for you.

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.

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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

Bank of Queensland Unsecured Personal Loan review
Overall 1/10
Disgraceful.

Disgraceful product. Had $90 left on my loan as I had been making extra payments. Instead of them taking the final payment - decided to leave it and only charge their $7.50 monthly account keeping fee. This was their plan for the term of the loan. What great value! I received no correspondence, ended up contacting them myself. I was told their system doesn't support courtesy emails in these situations. I work as an accountant - as if BOQ has nothing to do with the implementation of their own financial system. Corresponding with clients is a pretty basic function guys, but I'm assuming it would make your scam less lucrative. I will never use these guys again, they don't care about their customers. Not interested in helping anyone at all in the current financial climate.

Read full review

Disgraceful product. Had $90 left on my loan as I had been making extra payments. Instead of them taking the final payment - decided to leave it and only charge their $7.50 monthly account keeping fee. This was their plan for the term of the loan. What great value! I received no correspondence, ended up contacting them myself. I was told their system doesn't support courtesy emails in these situations. I work as an accountant - as if BOQ has nothing to do with the implementation of their own financial system. Corresponding with clients is a pretty basic function guys, but I'm assuming it would make your scam less lucrative. I will never use these guys again, they don't care about their customers. Not interested in helping anyone at all in the current financial climate.

Price
1/10
Features
1/10
Customer service
5/10
Convenience
5/10
Trust
1/10
Less
Samantha, Western Australia reviewed about 7 hours ago
Commonwealth Bank Unsecured Personal Loan review
Overall 6/10
Fair value, good for a basic loan provider.

Pretty basic personal loan options, but are usually willing to adjust interest rates for returning customers. Were willing to negotiate repayments when covid started.

Read full review

Pretty basic personal loan options, but are usually willing to adjust interest rates for returning customers. Were willing to negotiate repayments when covid started.

Price
7/10
Features
3/10
Customer service
5/10
Convenience
7/10
Trust
7/10
Less
Geoff, New South Wales reviewed about 7 hours ago
ANZ Unsecured Personal Loan review
Overall 10/10
Awesome bank to get your loans.

Awesome customer service when I applied for my loan. Really responsive and upfront about everything and always answering questions thoroughly and comprehensive with knowledge.

Read full review

Awesome customer service when I applied for my loan. Really responsive and upfront about everything and always answering questions thoroughly and comprehensive with knowledge.

Price
10/10
Features
8/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Jayden, Queensland reviewed 3 days ago