Personal loan interest rates: June 2021
There were a range of changes to personal loan interest rates in May, including both increases and decreases. Predominantly, adjustments were made to unsecured loans, with two top lenders and two of the big four dropping their rates. There were also a couple of changes made in the secured loan space.
For unsecured personal loan interest rates, there were more cuts made than increases. Both ANZ and CommBank decreased their rates, with ANZ adjusting both its variable and fixed offering while CommBank slashed its fixed rate. A small but notable change came from top personal loan lender Alex, which cut its Personal Loan rate by 4 basis points. This kept this online product as the lowest unsecured fixed rate on the Mozo database again this month with rates from 5.45% (5.45% comparison rate*).
Another lender worth mentioning is SocietyOne, as they both hiked up and dropped their rates - depending on a customer’s credit score. On its Unsecured Personal Loan (Excellent Credit), SocietyOne cut the rate by 44 basis points to 5.95% (6.64% comparison rate*) the fourth lowest unsecured fixed rate on the Mozo database. The lender also slashed its rate on the same product for customers with ‘average credit’ by 150 basis points to 13.49% (15.75% comparison rate*). Meanwhile, SocietyOne also made increases for customers that sit within the ‘very good credit’ or ‘good credit’ brackets. For those with ‘very good credit’ the rate went up by 50 basis points to 9.99% (11.21% comparison rate*), while for those with ‘good credit’ the rate was hiked up by 150 basis points to 11.99% (12.42% comparison rate*).
Heritage Bank and Southern Cross Credit Union also decreased their unsecured personal loan fixed rates. Plus, Southern Cross Credit Union also dropped its fixed secured loan.
Despite these changes, the leading personal loan lenders on the Mozo database have remained the same. The best multi-purpose unsecured personal loan variable rate belongs to Symple Loans with rates starting from 5.75% (6.47% comparison rate*). Similarly, Alex holds the top unsecured personal loan fixed rate starting from 5.45% (5.45% comparison rate*). Plus, Australian Military Bank still offers the best green personal loan rate on the Mozo database.
For secured loans, Illawarra Credit Union has the best rate starting at 5.25% (5.89% comparison rate*) on its Online Personal Loan Package. The top secured multi-purpose loan is still offered by Credit Union SA, with its Online-Only Fixed Rate Personal Loan at 4.25% (4.73% comparison rate*).
To check out more on how interest rates are tracking in other banking products for June take a look at our snapshots for Home Loan Interest Rates, Car Loan Interest Rates, Savings Accounts Interest Rates or Term Deposit Interest Rates.