
Finding the cheapest personal loan deals

New car, overseas adventure, home renovation, upcoming wedding, baby on the way...there’s plenty of reasons to take out a personal loan.
So if you’re looking for a loan that will help you pay for your upcoming expense without breaking the bank, this one's worth the read. We’ll run you through some of the top ways to land yourself a cheap personal loan deal to help you keep more money in your pocket in the long run.
Let’s start by talking about the obvious - interest rates and fees:
Interest rates
When comparing interest rates between personal loans, there are two types you need to consider: the headline rate and the comparison rate.
What's the difference you ask? Here's a breakdown...
- Headline rate: This is the rate you will be charged by the lender for taking out the loan. For example, a loan may be advertised as having a low variable or fixed rate of 7.50% with a comparison rate next to it. The headline rate is purely a reflection of what you will be charged in interest over the life of the loan - without considering any additional fees and charges. While this rate is a good indication of whether the personal loan is a competitive package, don’t forget to check with the comparison rate is.
- Comparison rate: By law lenders need to show the comparison rate next to the headline rate. The reason is because it gives you a better idea of how much the personal loan really costs when some of the fees are merged with the headline rate. But keep in mind the comparison rate only uses a set equation e.g $30,000 paid back over 5 years. So you may want to run the numbers using our personal loan repayments calculator to ensure the personal loan is the best for your scenario.
Looking for a low interest loan? compare below.
Compare cheap personal loans - last updated 9 December 2023
-
Featured Product
Mozo experts choice awards won:
- Excellent Credit Unsecured Personal Loan - 2024
Low Rate Personal Loan
Excellent Credit
interest rate
comparison rate
Monthly repayment6.57% p.a.to 8.48% p.a.7.19% 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 of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
CompareCompare- interest rate
- 6.57% p.a.to 8.48% p.a.
- comparison rate
- 7.19% p.a.to 8.84% p.a.based on $30,000
over 5 years
- interest rate
- 6.57% p.a.to 8.48% p.a.
- comparison rate
- 7.19% p.a.to 8.84% p.a.based on $30,000
over 5 years
- Upfront fee
- $250.00
- 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
-
Mozo experts choice awards won:
- Excellent Credit Unsecured Personal Loan - 2024
Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment6.75% p.a.to 26.95% p.a.6.75% p.a.to 26.95% p.a.based on $30,000
over 5 yearsBorrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'
Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.
CompareCompare- interest rate
- 6.75% p.a.to 26.95% p.a.
- comparison rate
- 6.75% p.a.to 26.95% p.a.based on $30,000
over 5 years
- interest rate
- 6.75% p.a.to 26.95% p.a.
- comparison rate
- 6.75% p.a.to 26.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0.00
- 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
-
Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.76% p.a.to 24.03% p.a.6.55% p.a.to 24.98% 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 5.76% would cost $35,173.52 including fees.
CompareCompare- interest rate
- 5.76% p.a.to 24.03% p.a.
- comparison rate
- 6.55% p.a.to 24.98% p.a.based on $30,000
over 5 years
- interest rate
- 5.76% p.a.to 24.03% p.a.
- comparison rate
- 6.55% p.a.to 24.98% p.a.based on $30,000
over 5 years
- Upfront fee
- $575.00
- 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
-
Personal Loan
Unsecured, Fixed, Exceptional Credit
interest rate
comparison rate
Monthly repayment6.57% p.a.6.57% p.a.based on $10,000
over 3 yearsBorrow from $5,000 to $50,000 with a Plenti Unsecured Personal Loan. Flexible loan terms of 1 - 7 years. $0 Monthly, $0 Early Repayment Fees and $0 Exit Fees. Get a rate estimate without impacting your credit score. Once approved, you could receive your funds in as little as 24hrs.
Repayment terms from 3 years to 7 years. Representative example: a 3 year $10,000 loan at 6.57% would cost $11,340.11 including fees.
CompareCompare- interest rate
- 6.57% p.a.
- comparison rate
- 6.57% p.a.based on $10,000
over 3 years
- interest rate
- 6.57% p.a.
- comparison rate
- 6.57% p.a.based on $10,000
over 3 years
- Upfront fee
- $295.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $25.00
- 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
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Displayed interest rate is for customers with an exceptional credit history. Application fees vary between $0 and $295 depending on the loan amount.
Read our Mozo Review to learn more about the Plenti Personal Loan
-
Debt Consolidation Loan
interest rate
comparison rate
Monthly repayment6.57% p.a.to 8.48% p.a.7.19% p.a.to 8.84% p.a.based on $30,000
over 5 yearsCompetitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
CompareCompare- interest rate
- 6.57% p.a.to 8.48% p.a.
- comparison rate
- 7.19% p.a.to 8.84% p.a.based on $30,000
over 5 years
- interest rate
- 6.57% p.a.to 8.48% p.a.
- comparison rate
- 7.19% p.a.to 8.84% p.a.based on $30,000
over 5 years
- Upfront fee
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- -
- 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
- Upfront fees from $250.
-
Standard Personal Loan
Fixed, Unsecured
interest rate
comparison rate
Monthly repayment8.99% p.a.9.35% p.a.based on $30,000
over 5 yearsHeritage Bank discounted rates for borrowers with excellent credit. Available loans starting from $5,000 to $50,000. Your choice of loan terms up to five years. Extra repayments allowed, but may incur fees.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.99% would cost $37,606.30 including fees.
CompareCompare- interest rate
- 8.99% p.a.
- comparison rate
- 9.35% p.a.based on $30,000
over 5 years
- interest rate
- 8.99% p.a.
- comparison rate
- 9.35% p.a.based on $30,000
over 5 years
- Upfront fee
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $30.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- 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 Heritage Bank Standard Personal Loan
-
Debt Consolidation Loan
interest rate
comparison rate
Monthly repayment5.86% p.a.6.67% p.a.based on $30,000
over 5 yearsRoll multiple debts into one loan to streamline your finances with one set of repayments and one interest rate. Competitive fixed interest rates with no monthly or early repayment fees and flexible repayment options. Easy online application and funding in as little as 24 hours (subject to approval).
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.86% would cost $35,256.99 including fees.
CompareCompare- interest rate
- 5.86% p.a.
- comparison rate
- 6.67% p.a.based on $30,000
over 5 years
- interest rate
- 5.86% p.a.
- comparison rate
- 6.67% p.a.based on $30,000
over 5 years
- Upfront fee
- $575.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $15.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- 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
- -
Read our Mozo Review to learn more about the Harmoney Debt Consolidation Loan
Personal loan fees
Like any loan, personal loans come with a bunch of fees you need to be aware of. The aim of the game is to pay as minimal fees as possible so more of your money can go to paying back your loan!
- Application fee: a personal loan upfront fee could be anywhere between $0-$600 (depending on the provider) and is payable when you apply for the loan. Generally, the reason lenders may charge an upfront fee is to cover some of their administration costs e.g running a credit check on you. If a loan comes with a high application fee, you’ll want to ensure that the savings you make from the low interest rate (and or competitive features) are worth it.
- Ongoing fee: The same applies for any regular fees that you’ll be charged over the life of the loan, as these could add up to big bucks in the long run. Thankfully, with most providers the ongoing monthly fee isn’t too dear sitting at around $10.
- Break cost fee/early repayment penalty: Some fixed rate loans these days come with an extra repayments facility, which allows you to pay extra on your loan ultimately meaning you will pay it off sooner. But the thing you’ll need to watch out for is fixed rate loans can come with a break cost fee, which is a fee charged if you try to pay off the loan early. According to the Mozo database these fees can go up to $175.
Other things to look for in a personal loan
While a low rate and fees are extremely important, make sure the personal loan you take out comes with the flexibility to help you pay it off sooner. Here are some features to keep an eye out for:
Extra repayments | Finding a personal loan that comes with the option of making extra repayments should be high on your priority list. For example, say you take out a loan for 5 years and score a work promotion after 2 years but when you go to make extra repayments, you discover that the loan doesn’t allow additional payments. That would be more than a frustrating scenario! So when you look for a cheap personal loan deal, make sure it allows you to make fee free additional repayments, so you have the flexibility to pay the loan off when you come into extra money. |
Redraw facility | Let’s look at another scenario. You make extra repayments on your loan but then bam your car breaks down and you need to throw down a few thousand for repairs. If you don’t have the cash handy, a redraw facility allows you to draw upon the additional repayments. Just keep in mind while a redraw facility can come in handy, you will end up paying more in interest and will extend the life of the loan by redrawing. |
Flexible repayments | Some personal loans only allow you to set up your repayments monthly. So if you get paid weekly or fortnightly it’s worth taking the time to check that the cheap personal loan also comes with repayment flexibility e.g allows you to choose between weekly, fortnightly or monthly repayments. It might even be a thrifty option to set up your repayments fortnightly, as you’ll pay back a month moreover a year period. Let’s run some numbers. There are 26 fortnights in a year, so if your repayments are $500 you will pay back $13,000 over a year. By comparison paying $1,000 over 12 months you’ll only pay back $12,000. |
Tiered interest rate | More and more lenders are adopting risk-based pricing models which offers tiered interest rates based on a customer's credit history. If you have a good credit rating, make sure you shop around with these sorts of lenders - you may snag yourself a lower interest rate than you thought. |
Scoring the best personal loan deal
Now that you’ve got an idea of what to look out for, here are some tactics for scoring a cheap personal loan deal:
1. Secure your loan with an asset
For the borrowers out there that own assets like expensive household items, property or a car, did you know you may be able to use these as security for the loan? Putting up an asset as collateral means if you forfeit on the personal loan the lender can seize the asset and sell it to recover their loss. This obviously makes you a less risky borrower. In return you’ll get a much cheaper personal loan deal.
For instance, at the time of writing one the average secured personal loan rate sits at 8.01%, by comparison the unsecured loan average is a higher rate of 10.52%. To really put things into perspective, our personal loan comparison calculator shows on a $20,000 loan the lower rate loan would save you $1,468 in interest over a 5 year period.
2. Bundle products
Another method you could use for scoring yourself a cheaper personal loan deal is bringing some of your other banking products to the table like your credit card, savings account or bank account. You may find the lender will be willing to bring down the interest rate or wipe the personal loan application fee for borrowers that bundle.
3. Look outside the major banks
Are you comfortable with managing your personal loan online? Then it’s worth considering a personal loan from a challenger brand. Today there are many online personal loans and peer to peer providers offering competitive personal loan deals to Aussie borrowers.
Without the huge costs that the banks incur like paying dividends to shareholders and the cost of branch upkeep and staff, these lenders are able to pass on cheaper personal loan deals than the big banks.
Personal loan comparison steps
Want to kick off your personal loan search? A personal loan calculator can simply the process. Just follow these three easy steps:
Step 1: Use a comparison tool - See what’s out there in the market by punching your details, like how much you’re looking to borrow and how many years you want the loan for, into a personal loan calculator.
Step 2: Create a shortlist - Our personal loan calculator allows you to select the products you like and compare them side by side. As mentioned above, don’t just compare the deals by the headline interest rate, but also check the comparison rate to ensure you’re hunting down the cheapest deal for you.
Step 3: Kick off your application - Once you’ve found a personal loan deal that you’re happy with, click on the ‘go to site’ tab to be taken directly to the provider’s website to fill out your application online.
* 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.