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Fixed
Borrow 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.
Read our Mozo Review to learn more about the NOW Finance Unsecured Personal Loan
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Fixed
Fast, 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.
Read our Mozo Review to learn more about the Harmoney Unsecured Personal Loan
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Excellent Credit
Competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.
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.
Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
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Secured
Access fast finance on loans from $5,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 24-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.
Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.
Read our Mozo Review to learn more about the Jacaranda Finance Express Personal Loan
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Roll 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 5.76% would cost $35,173.52 including fees.
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Competitive 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.
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^See information about the Mozo Experts Choice Personal loans 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.
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
Read our Mozo Review to learn more about the NAB Low Rate Card - Balance Transfer Offer
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Enjoy $0 Annual Card Fee (usually $195) in the first year when you apply online and are approved. T&Cs apply. New Card Members only. Offer subject to change without notice.
Enjoy $0 Annual Card Fee (usually $195) in the first year when you apply online and are approved. T&Cs apply. New Card Members only. Offer subject to change without notice.
Read our Mozo Review to learn more about the American Express Platinum Edge Credit Card
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Receive 100,000 bonus Qantas Points when you apply online by 2 April 2024 , are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.
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Read our Mozo Review to learn more about the American Express Qantas Ultimate Card
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See more credit card providersThinking about taking out a personal loan in 2024? Whether you're looking to consolidate debt, give your home a makeover, or jet off on a much-needed trip, there are some great options out there in March.
And it might be a good time to compare personal loans right now as rates hold steady. Following numerous Reserve Bank rate hikes throughout 2022 and 2023, we saw some lenders increase personal loan interest rates, but this year the expectation is that the RBA will pause hikes, meaning rates should stabilise.
According to the Mozo database, the average personal loan interest rate for an unsecured loan has now reached 10.50% p.a. and 9.36% p.a. for a secured loan.
But there's more than just the interest rate to consider when taking out a personal loan. You’ll also want to consider the loan term, loan amount, loan features, plus any fees you might need to budget for.
You’ll also want to consider whether a secured (put against a personal asset) or unsecured loan is better for you, especially given that several of the top unsecured loans at present offer rates below 6%.
If you’re looking for a low-interest rate, here are some of the current lowest loan rates (based on $30,000 over 5 years) in March 2024 that we track here at Mozo:
Lowest variable rate: Community First Bank Home Improvement Loan – 5.54% p.a. (6.53% p.a. comparison rate*) for home renovations
Lowest fixed rate: Harmoney Unsecured Personal Loan – fixed rates from 5.76% p.a. (6.55% p.a. comparison rate*)
Lowest Big 4 (variable rate): NAB Unsecured Personal Loan (variable, unsecured) - 6.99% p.a. (7.91% p.a. comparison rate*)
Lowest variable rate: Illawarra Credit Union Online Personal Loan Package – 6.00% p.a. (6.64% p.a. comparison rate*)
Lowest fixed rate: Bank of Melbourne Secured Personal loan (Fixed) – 6.49% p.a. (7.61% p.a. comparison rate*), BankSA Secured Personal Loan (Fixed) – 6.49% p.a. (7.61% p.a. comparison rate*), Newcastle Permanent Secured Fixed Loan – 6.49% p.a. (8.21% p.a. comparison), St George Secured Personal Loan (Fixed) – 6.49% p.a. (7.61% p.a. comparison rate*)
Lowest Big 4 (fixed rate): Commonwealth Bank Secured Personal Loan – 6.99% p.a. (8.40% p.a. comparison rate*)
Lowest green loan (variable): Community First Bank’s Green Loan (Variable, Unsecured) – 5.54% p.a. (6.53% p.a. comparison rate*)
Lowest green loan (fixed): Bendigo Bank Green Personal Loan (Fixed, Secured) – 5.49% p.a. (5.84% p.a. comparison rate*) & Northern Inland Credit Union Green Loan (Home Improvement, Fixed, Unsecured) – 5.49 p.a. (n/a comparison rate*)
To find some of our award-winning and editor’s choice personal loans this month, take a look at our best personal loans.
Finding the right personal loan for your needs can be tricky, so we're here to try to help. This handy guide will run you through all the factors to consider when looking for a competitive personal loan in Australia. .
A personal loan allows you to borrow a lump sum of money and then repay that amount (plus interest on top) in instalments over a set period of time. Often, you’ll make monthly repayments over a period of 1 - 5 years.
A personal loan is generally for a lower amount than a home loan and is useful for lump sums between $2,000 and $100,000, which are too big to put on a credit card.
It’s also useful because as long as you meet your monthly repayments, you’ll know how long you’ll have debt and approximately how much interest you’ll pay from the beginning.
In Australia, personal loans can be used to help fund all sorts of things. However, they're most commonly used for bigger expenses like holidays, home renovations or buying a new car.
They can also be used to consolidate debt or to pay for unexpected expenses like medical bills or surgery.
What you need the loan for might make a difference to what kind of loan you go for. For example, if you're after a personal loan for:
There are many things to keep in mind when comparing personal loans, from the interest rate to fees to features and special offers. But to narrow it down, here are three of the main things to consider when comparing personal loans:
These are the bare basics of personal loans, but keep in mind there's a range of other factors to consider - like loan terms and amounts.
Good question. Here are 3 easy steps you can take to help determine how much you should borrow:
While a lender may approve you for a large loan amount, that doesn't mean you should automatically take out that entire sum.
Use Mozo's budget calculator to help get a clearer picture of your current financial situation and determine how much money you have to play with after all your expenses (home loan repayments/rent, utility bills, insurance etc.) are taken out.
For example:
Say you have a monthly disposable income of $1,000. How much of that money can you actually afford to use to pay back a loan? If you take out a loan with a $900 monthly repayment, you'll be left with $100 a month for the rest of your expenses - we hope you don't fancy a night out!
Once you've decided on a loan amount you're comfortable with, have a play around with our personal loan repayments calculator to see what kind of borrowing scenario would work for you.
If you find that the amount you're looking at borrowing will make your ongoing repayments far too steep, you might want to consider borrowing a smaller amount or opting for a longer term (which will, in turn, make repayments smaller over a longer period of time).
For example:
Say you borrowed $20,000 with a 10% interest rate. Using our personal loan repayments calculator, we found that your monthly repayments would be:
Keep in mind that while the longer-term option might help take the financial pressure off each month, the downside is that you'd wind up paying $3,346 more in interest over the life of the loan.
Once you've figured out how much you can afford to borrow, it's time to compare personal loans until you find one with a competitive interest rate and the right features to suit your individual needs.
Read on for our breakdown of the different types of personal loans in the market.
While there are many different types of personal loans available in Australia (car loans, travel/holiday loans and renovation loans), they all more or less work the same way.
You borrow a lump sum from a lender and pay it back over an agreed timeframe (plus interest and any fees).
That being said, here are some of the different types of personal loans you'll have to choose from depending on your individual needs:
With a secured loan, you'll need to put up your car, house or other valuable asset as security against the loan. Other eligible assets might include expensive jewellery or art.
Why? For lower interest rates and fees, of course! Like in a game of high stakes poker (we watch movies too!), putting up collateral can act as cash and keep costs down on your actual loan.
You might want to watch out, though - if you take out a secured loan, the provider has the right to seize your assets if you default on the loan.
On the other hand, if you'd rather not risk losing your car or home, or just don't have any assets to secure your loan with, you could opt for an unsecured loan.
While unsecured loans don't require you to guarantee the loan with any assets, you are often left with higher rates and fees.
Another way you can use personal loans is to help ditch debt. A debt consolidation loan lets you combine multiple debts (from multiple loans, stores or credit cards) into one loan.
This way, you'll have just one regular repayment and interest rate to worry about instead of juggling multiple repayments, deadlines and amounts.
Once you've chosen a personal loan type to suit your borrowing needs, you'll need to think about the type of interest rate and features that you want.
Choosing the right interest rate type to suit your individual needs and financial situation is vital when taking out a personal loan. You might have heard of the two main options: fixed and variable.
With a fixed rate loan, your interest rate stays the same for the life of your loan, making it easier to budget. This is an attractive option if you're worried about a rate hike down the track in a rocky financial climate.
Of course, there are a few cons. Fixed rates generally come with higher rates and fees, as well as less flexible features like a lack of extra repayments and redraw facilities. Fixed rate loans also often come with break cost fees if you decide to pay your loan off early.
On the other hand, with a variable rate loan, your interest rate could change at any time. This could put you at risk if your provider decides to hike up their personal loan variable rates.
However, the benefit of a variable rate loan is that they often come with lower rates and fees and more flexible features.
The features that come with your personal loan are super important and shouldn't be overlooked. Here are some of the different features you might come across when comparing personal loans:
You never know where you'll be down the track financially. It's good to have a personal loan with an extra repayments facility so you have the ability to make extra loan repayments - this means that if you suddenly find yourself splash with cash, you can pay your loan off quicker.
By the same token, you never know when you'll be hit up with unexpected bills, so another handy feature to have is a redraw facility. This allows you to dip into any extra loan repayments you've made and redraw the money. Although this defeats the purpose of making those extra repayments in the first place, it can be handy in an emergency - just don't get too speedy with those redraws!
The beauty of having flexible repayment options is that you're able to tailor them to your regular pay schedule. If your employer pays you fortnightly, you might opt for fortnightly loan repayments to match.
Hack: One benefit to going with fortnightly repayments is that you'll wind up paying more off the loan within a year as opposed to with monthly repayments.
For example, if your monthly repayments are $1,000, you'd pay off $12,000 in one year, whereas if your fortnightly repayments are $500, you'd pay off $13,000, as there are 26 fortnights in the year.
By going with fortnightly repayments you'd shave off an extra $1,000 for each year of the life of the loan, helping to speed up the process of paying off your loan.
Now that you're in the know about the types of personal loans out there and the different features to look for, you're probably wondering how you can land yourself a great deal.
Step 1: Compare personal loans
Step 2: Make your shortlist
Once you've punched in your numbers, our personal loans calculators will bring up a list of loans that might suit what you're looking for based on your search query.
You can then shortlist your favourites by clicking on the button on the left-hand corner of the product info.
Struggling to pick between two loans? Use our personal loan comparison calculator to compare them side by side.
Step 3: Start your personal loan application
Once you're picked the loan you're happy with (and eligible for!) and are happy to apply, you can click the blue 'go to site' button next to the loan to be taken to the provider's website, where you can submit an online application.
If you're keen to start comparing personal loans, then scroll up to the comparison tool at the top of this page. Alternatively, if you want to know more about personal loans, head over to our personal loan guides hub.
The right personal loan for you will depend on your own individual needs. The personal loan comparison table at the top of this page is a good place to start your search. Otherwise, you can click here to search through the whole Mozo personal loan database, or find our best personal loans.
A personal loan allows you to borrow a lump sum of money and then repay that amount (plus interest on top) in instalments over a set period of time. Personal loans tend to be cheaper on average than, say, credit cards, which are seen as a typical alternative.
A personal loan can be useful for lump sums between $2,000 and $100,000, which are too big to put on a credit card. It’s also useful because as long as you meet your monthly repayments, you’ll know how long you’ll have debt and approximately how much interest you’ll pay from the beginning.
In Australia, personal loans can be used for pretty much whatever you need, though they are commonly used to fund an expensive item like a holiday, home renovation or new car. Personal loans can also be used to consolidate debt and to pay for unexpected expenses like medical bills.
Typical loan sums are between $2,000 and $100,000. While a lender may approve you for a considerable loan amount, that doesn't mean you should automatically take out that entire sum. Use Mozo's budget calculator to get a clear picture of your financial situation and determine how much money you have to play with after all your expenses.
As of March 2021, Australian Military Bank, Credit Union SA and Transport Mutual Credit Union offer the lowest personal loan interest rates in the Mozo database (Please note: these go across different loan categories and aren't all the same). Smaller mutual banks and credit unions are still where it’s at if you’re after a more competitive rate.
Check out our comparison page to see how big banks stack up against small lenders and find a loan that might suit your needs.
According to Mozo's analysis of the personal loan market for the 2021 Mozo Experts Choice Awards, there are several loans of note. Some award-winners offering the best value in 2021 include Australian Military Bank, Alex, Endeavour Mutual Bank, ING and Hume Bank.
To learn more, you can read product reviews of Australia's Best Personal Loansor view the full list of Mozo Experts Choice Personal Loan Award winners.
This will depend on the type of loan you apply for. If you apply for a secured personal loan, you'll have to provide an asset, like a car, to use as security against the loan. Although this does give your lender the right to repossess your asset if you default on the loan, the good news is secured personal loans typically come with lower rates.
On the other hand, if you opt for an unsecured personal loan, you won’t have to provide any security. However, unsecured personal loans usually come with higher interest rates.
In our personal loan table at the top of this page, the comparison rate sits to the right of the interest rate and is a quick way of comparing the cost of the personal loan once both the interest rate and fees are combined. The comparison rate is often coined as showing the 'true' cost of a loan.
There’s no easy answer to this question, as it will depend on your financial circumstance and what you’re looking for. So to help you make a decision, we’ve jotted some pros and cons for different types of lenders.
This includes the big four banks, Westpac, ANZ, NAB and CommBank, plus other major lenders like St George, Bankwest, HSBC and ING.
An alternative to the big banks are smaller credit unions. These are not for profit organisations that are funded by their members.
A newer type of lender shaking up the market is peer-to-peer (P2P) lenders. P2P operates on a different platform to traditional banking in which it connects investors with potential borrowers in an online marketplace.
One misconception about personal loans is that applications can take a while to process. In reality, finding a fast personal loan is possible, and some lenders can have the funds in your bank account on the same day or within 2 business days.
While many lenders will offer different repayment schedules, personal loan repayments can typically be made on either a weekly, fortnightly or monthly basis. One easy way to make your repayments is to set up a direct debit from your bank account. This will also help ensure you won't ever miss a repayment or be charged a late payment fee.
But if for any reason you can't make a repayment, you’ll need to contact your lender ASAP to discuss an alternative arrangement.
If you are looking at borrowing a small amount, say under $5,000 and are tossing up between plastic or a loan, here are some things to consider:
Personal Loans:
Credit Cards:
Personal loans are designed to help fund bigger purchases that make more sense to pay off over time rather than having to wait until you have the money saved to pay for it upfront. This is why personal loans could be a good finance option for Aussies who are buying a new car, doing some home renovations, planning a wedding or other big one-off expenses.
Lenders generally don't have many restrictions on what you can use a personal loan for, though you'll usually be asked about the purpose of the loan when you apply.
Car loans: For some purchases, there are lenders that will actually give you a better interest rate than a regular personal loan. For instance, if you are planning on buying a new car, you'll find that many lenders will have sharper rates for new car purchases when you secure the car against the loan.
Green loans: Another loan purpose that's getting more popular with lenders in Australia is eco-home improvements such as rainwater tanks, solar panels, insulation. Lenders view borrowing in these areas as smart investments and reward customers with lower interest rates.
Check out the Mozo Experts Choice Personal Awards page to see which Aussie lenders have received our expert's tick of approval.
While you still might be able to get a personal loan with bad credit, it’s not always the best idea as you’ll often be charged super high rates and fees. Thanks to the rollout of comprehensive credit reporting (CCR), many lenders have already begun assessing a borrower’s credibility based on their credit history.
In this case, it could be worth repairing your credit history first before applying for a loan.
Yes, some providers offer personal loans to students, but you’ll find there is a slight difference in terms of eligibility. With a student personal loan, there’s a little more flexibility with the loan application since students generally have lower incomes and little to no assets, compared to a borrower working full time and no longer studying.
But although approval for student personal loans does come with some breathing room, lenders tend to be a little stricter in terms of repayments and may only offer smaller loan amounts to help make sure you can comfortably pay back your debts.
Yes, pensioners can take out a personal loan, but it can be tricky to get approved. If you're a pensioner looking to take out a personal loan, you’ll find that there are limited options. This is because it’s harder to prove to a lender that you can make your repayments if you no longer have a regular income.
However, if you’ve got some extra cash stashed away in an account that can be put towards your repayments, you might be in a better position to negotiate with a lender and have better chances of success.
Australia is in the process of moving towards a comprehensive reporting system that enables lenders and other businesses to see your whole credit history when making a judgement on whether to lend you money. In the past, banks were only ever interested if you had missed a repayment or defaulted on a loan.
Now they are able to get a sense of your whole financial picture, such as when you make your bill repayments, whether you pay the whole bill or only part of it, how much of your credit limit you have available etc. The positive to this is that it rewards people who can demonstrate good savings and financial behaviour. Lenders can see that you will be able to pay back any money borrowed in the timeframe that you said you would.
So now, when it comes time to think about getting a personal loan, you really need to be much more prepared in the lead up by making sure your bills are kept up to date, you're demonstrating good savings habits, and comfortably meeting other financial commitments.
Before you apply for a loan, it's a good idea to get a copy of your credit report so that you can check it for any errors or know the areas that you might want to improve before you ask the bank for a loan.
There's no way of guaranteeing that you'll be approved for any loan. All you can do is make sure that you've got the highest chance possible - this means:
With most lenders now offering online loan applications, applying can be pretty straightforward. In some instances, (once approved) you can even get the funds directly deposited into your account within a few days of the loan application.
To make your personal loan application go as smoothly as possible, it's a good idea to have some of the essential information handy and that you'll meet any eligibility requirements.
If you're applying for a loan with a provider that you don't already have any personal history with, it's likely that you'll need to supply them with personal information and identification details. Examples of this kind of information are:
Other information you are likely to need includes:
If you come to find that you've been rejected for a personal loan, it's best not to immediately apply for another. Each time you’re rejected for a loan, it goes on your credit history, potentially making it even harder to get approved next time.
The first thing you’ll need to do is assess why you’ve been rejected. Some of the more common reasons for being rejected include having a:
These are all things that might impact your ability to repay your loan in the future.
Your next step should be to make adjustments to your application to ensure that you aren’t rejected again. This could mean cleaning up your credit history, reassessing your budget and borrowing capacity to make sure you can afford the loan or trying to add a little more to your savings stash.
The thing to remember about any kind of personal credit is that you'll eventually have to pay the money back. Here are some tips to help you avoid some of the biggest borrowing traps:
Poor customer service. Not clear with fees. Increased fees. Not flexible with repayments.
Read full reviewPoor customer service. Not clear with fees. Increased fees. Not flexible with repayments.
I have been with defence bank for quite a few years and I really enjoy them
Read full reviewI have been with defence bank for quite a few years and I really enjoy them
Commbank has a great reputation, good customer service and app is excellent, very convenient experience.
Read full reviewCommbank has a great reputation, good customer service and app is excellent, very convenient experience.
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