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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 reviews and learn more about NOW Finance personal loans
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Excellent Credit, $5,000 - $75,000
Competitive low rates for borrowers with excellent credit on 1-7 year loans from $5,000 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 reviews and learn more about OurMoneyMarket personal loans
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Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.99% would cost $36,132.67 including fees.
Read reviews and learn more about Revolut personal loans
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Secured
Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-48 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.
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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 reviews and learn more about Harmoney personal loans
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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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See more personal loan providersA low interest rate personal loan comes with a lower rate of interest than many other loans on the market. The purpose of such loans remains the same however: they can be used to help pay for major expenses such as buying a car, renovating your home or consolidating debt.
Let’s look into these personal loans a bit more.
A low rate personal loan generally refers to a personal loan with an interest rate below the average. The current average interest rate for an unsecured personal loan (as of September 18, 2024) is 10.43% p.a., whereas the best rate sits at 5.49% p.a., as per the Mozo database. As for secured loans, the current average rate is 9.07% p.a. The best secured rate in the Mozo database also sits at 5.49% p.a.*
So, there’s quite a gap between the average and best rates in our data. Unfortunately, not all lenders offer these competitive rates, so it’s important to shop around and compare.
When researching personal loans, you’ll need to decide whether you want a fixed or variable interest rate, and your decision will impact the overall cost.
Let’s explore the differences.
With a fixed rate loan you lock in an interest rate, which means your repayments stay the same for the life of the loan. While this can make it easier to budget for, these loans generally come with higher rates.
With variable rate loans your interest rate could change at any time as they fluctuate with the market. The flip side is that variable rates are typically lower than fixed rates.
💡Fixed vs variable interest rates 🔩Fixed rate personal loan:
⚖️Variable rate personal loan:
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Ultimately, the type of rate you choose will depend on your current financial situation.
If you’ve got room in your budget to cover any potential rate rises, you might opt for a variable rate. Just keep in mind that variable rates might not always be more favourable.
Having a low interest rate is great, but it doesn’t necessarily mean it will be the cheapest loan option available. For example, your relatively low rate may be offset by high fees. Loans with extra features such as a redraw facility might also come at an added cost.
So there are a few variables to be aware of when comparing low rate personal loans such as:
Flexible repayment options
A redraw facility
Additional fees.
With this in mind, let’s use the Mozo calculator to see potential cost differences between two loans.
Loan 1
Loan amount: $10,000
Interest rate: 10.35% p.a.
Loan term: 3 years
Monthly repayments: $324
Total interest and fees: $1,675
Loan 2
Loan amount: $10,000
Interest rate: 9.75% p.a.
Loan term: 3 years
Monthly repayment: $321
Upfront fee: $300
Total interest and fees: $1,874
As you can see, despite the second option having a lower ongoing interest rate than the first option, it’ll cost $201 more in the long run due to the $300 upfront fee.
This is a good example of why it’s always important to crunch the numbers and compare.
To determine whether you’re eligible for a low rate personal loan, lenders will typically assess your credit score, income stability, whether you have any existing debt and your overall financial situation.
The better your credit report and current financial situation are, the greater your chance of getting a lower interest rate will be.
Let’s look at these factors that will determine the interest rate.
If you have existing debt, a lender might see you as more of a risk and be less likely to approve your loan. Even if they do approve you, you could wind up with a higher interest rate.
Typically the better your credit score is, the better your interest rate could be. By the same token, the worse your credit score is, the higher the interest rate could be. So, if your credit has taken a hit, be sure to repair your credit score before applying.
When applying for a loan you generally need to provide proof of consistent income. As you’d expect, the higher your income and the more consistent it is, the more likely you’ll be offered a lower interest rate.
While low rate personal loans can draw people in with lower interest rates, they can also come with higher fees and more restrictions than other loans. It's always best to compare your options first.
Here are a few benefits of a low-rate personal loan:
Can use the loan to consolidate existing debt
Provide a flexible way to pay for something large
Competitive interest rates can be lower than credit cards.
Meanwhile, here are some of risks to look out for:
High fee charges
Strict repayment terms
Negative impact on credit score if you manage your loan poorly.
*These figures are based on a loan for $10,000, variable or fixed. These calculations are done based on a customer with good credit who meets all loan criteria.
To find the best personal loan for you, you’ll need to consider your current financial situation. Crunch the numbers to determine what you can afford to borrow, and run a personal loan comparison to find an option that suits your needs.
Lower rates are usually limited to low risk borrowers. So the worse a borrower’s credit score or financial situation is, the higher the risk they are to the lender. Therefore, the higher the interest rate they’ll typically be offered.
Peer-to-peer (P2P) lenders are online services that match lenders with borrowers. Providers such as Harmoney, Plenti and SocietyOne usually have lower overheads than some traditional players, which allows them to offer loans with competitive interest rates.
Opting for a personal loan with a major bank over an online lender could give you access to a greater choice of products. Then again, credit unions and mutual banks can also be a great option as they generally have lower interest rates than some of the big players
With a credit card you may be able to take advantage of a range of features such as an interest-free period as well as rewards point offers. However, low rate credit cards can have rather high fees and penalties compared to personal loans. These potential cost differences need to be weighed up.
They emailed my broker a reply they only get when you have gone belly up. I asked for a loan for consolidation but denied me on the 11july, same week another company done it the same day and I've saved alot. Since then My broker went through them today and they wrote a distaste full email without reason, when I have never defaulted. Never use this company.
Read full reviewThey emailed my broker a reply they only get when you have gone belly up. I asked for a loan for consolidation but denied me on the 11july, same week another company done it the same day and I've saved alot. Since then My broker went through them today and they wrote a distaste full email without reason, when I have never defaulted. Never use this company.
Easy access; not bureaucratic.
Read full reviewEasy access; not bureaucratic.
My bank is not very easy to deal with! I am looking to change banks at some stage
Read full reviewMy bank is not very easy to deal with! I am looking to change banks at some stage
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