Personal Loans Melbourne 

A personal loan might just be the ticket to living your life in Melbourne to the fullest. From a new car to home renovation, a personal loan can give you room to enjoy your everyday life. Compare now!

Fact Checked
melbourne personal loans

Melbourne personal loan comparisons on Mozo - last updated 28 May 2024

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    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.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    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.

    Compare
    Details
  • Debt Consolidation Loan

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.57% p.a.to 24.99% p.a.based on $30,000
    over 5 years

    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.

    Compare
    Details
image of houses

Need the help of a personal loans expert?

We've partnered with LoanOptions.ai to help you get the personal loan that suits you.

Learn more
Search now

^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.

Hey, before you continue…

Lenders on our site have strict lending criteria. We want you to find the right loan so before proceeding with a loan application, be sure that at a minimum you:

If you don’t know your credit rating, try using our rate matcher tool, where we run a free credit check to help you find a loan you may qualify for.

Personal loan lenders we compare at Mozo

Save with deals from the following well-known brands and many more...

See more personal loan providers

Personal loan resources

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

Finding a personal loan in Melbourne

If you live in Melbourne, you’ll find that you’re spoilt for choice when it comes to finding a personal loan for all your spending needs, making the task much harder. 

But don’t worry! We’ve taken the hassle out of choosing a loan with our handy comparison table, so you’ll be cruising down the Nepean Highway in your brand new car or booking your next holiday in no time - equipped with all the information you need to make your choice.

How do Melbourne personal loans work?

A personal loan lets you borrow an amount of money and then repay that amount over a set period of time - plus interest. Usually, you’ll be repaying in monthly instalments over a period of 1 - 7 years, but this can differ depending on the loan and amount. 

People will generally take out a personal loan for a lower amount than a home loan and an amount too large for a credit card - usually between $2,000 and $100,000. 

Most personal loans are available Australia-wide, including in Melbourne and across Victoria, but to find Melbourne loans you can search Mozo’s personal loan database and limit your location to Victoria.

Why do people get personal loans in Melbourne?

You won’t be short of ways to spend money in Melbourne. People take out loans for all sorts of reasons, and some of the most common uses are:

  • Debt consolidation: Melburnians are no exceptions to Australia’s national debt, being one of the country’s most expensive cities. Debt consolidation loans are used to bring debt from different areas (credit cards, store, existing loans, etc) into one manageable loan with one set of repayments.

  • Holiday loans: Most Aussies have long caught the travel bug, and can reach for a holiday loan to fulfil their dreams. These loans will see you making your way from Melbourne to Mexico or Monaco with a little bit of cash in your pocket.

  • Home renovation loans: The creative streak in Melbourne extends to the property market with home renovation loans being popular. In fact, on average, Victorians spend the most on home renovations in the country!

  • Medical loans: Even though we have Medicare in Australia, specialist care and procedures in Melbourne can be pricey. Medical loans are quite commonly used to pay for these services, as well as cosmetic surgery loans for that very specific kind of procedure.

  • Car loans: Even though Melbourne is known for its trams, a car is still helpful for getting around. Car loans are common in Melbourne, along with bike loans.

  • Occasion loans: Plan the perfect Melbourne wedding or honour someone with a grand gathering - a personal loan can make event-planning a much smoother process.

Where can you get a personal loan in Melbourne

As one of Australia’s metropolitan centres, you can get Melbourne loans from almost all of the country’s lenders. No matter whether you’re looking to borrow a large or small amount, for any occasion, most lenders should be able to get you sorted with the right loan for you. 

This means you will be able to access lenders from major banks along with peer-to-peer lenders and specialist financers. Peer-to-peer lending tends to offer quicker approval than a bank if you’re looking for quick cash loans in Melbourne, but it depends on your personal circumstances and the situation..

If you’re looking for a loan, you can plan it out by working out how much you can afford to borrow with our personal loans repayment calculator. Check our personal loans database for all the loans that will suit your needs - including Mozo’s best personal loans.

What kind of personal loan can I get in Melbourne?

Generally personal loans fall into two broad categories, secured and unsecured. Each have their pros and cons, so it’s worth comparing both before picking the one that will work best for you.

  • Secured personal loan - A secured personal loan means you will have to provide an asset to act as collateral, like a car. So if you ever default on your repayments, the lender has the right to repossess the asset. The flip side is, secured personal loans usually come with lower interest rates.
  • Unsecured personal loan - Your second option is an unsecured personal loan - while these personal loans won’t ask for security, they do generally come with higher interest rates.

What interest rates are available for personal loans in Melbourne?

Something crucial to any loan is the interest rate and while finding a low rate might be top priority, deciding on which is best for you is also important. There are two types of interest rates:

  • Fixed interest rates - With a fixed rate loan, you’ll be locking in your interest rate for the whole loan term, so if you like the idea of knowing what your repayment will be, then a fixed interest rate could be right for you. Just keep in mind that if you plan to pay out your loan before the term end, you may have to pay an early break fee.
  • Variable interest rates - A variable rate loan means your interest rate will change according to how the market moves, so your repayments will vary from time to time. But one of the great things about variable rates is that you won’t be charged a fee if you pay out your loan earlier, and you’ll have access to more flexible loan features.

What features should I compare in a personal loan?

No matter if you live in Perth or Melbourne, personal loans come with some features you’ll need to take into account before you pick your loan. They include:

Fees

It’s not uncommon for a personal loan to come with a few fees, but it is possible to cut down on how many you pay. Here are some of the fees you should keep an eye out for when shopping around on personal loans:

  • Application or upfront fees - This is probably the most common personal loan fee you need to budget for. Application or upfront fees are are a one-off payment paid at the start of the loan.
  • Ongoing fees - Ongoing fees are charged as an annual or monthly fee and cover the cost of maintaining your loan.
  • Discharge fees -More commonly known as the exit fee, this is the fee that covers the cost of closing your loan.  
  • Late repayment fees - If you don’t make your repayment by the due date, you will be charged a late repayment fee.

Repayment options

Since you’ll be paying off your personal loan for years to come, it makes sense to have a few extra loan features on your side to help you better manage your budget and save money. Some of the personal loan features you might come across include:

  • Extra repayments - This handy feature allows you to make additional repayments to your personal loan, helping you cut down on interest. However, some lenders do charge a fee in order to do this and set limits on how much you can repay, so be sure to read the fine print.
  • Redraw facility - If you ever find yourself stuck with an unexpected bill, having a redraw facility on your loan means you’re able to redraw the extra repayments you’ve made to help pay for life’s unexpected situations.
  • Repayment frequency - With many personal loans you’ll also have the choice to repay your loan on a schedule that suits you best, either weekly, fortnightly or monthly to help you better manage your budget.

The loan term

Personal loans usually last between 1-7 years and which loan term you pick will make a difference. A shorter loan term will mean that your monthly repayments are larger, while a longer loan term will mean smaller repayments each month, but you’ll fork out more on interest in the long run.

Are there any restrictions with what I can use a personal loan for?

While you will be asked to specify the purpose of the loan, whether it’s to buy a new car or to have your dream Melbourne wedding, lenders generally don’t have any restrictions on what you can and can’t use the loan for, unless you’re looking at a car loan product. However, it’s a good idea not to use a personal loan to pay for everyday expenses, like groceries or utility bills, as it’s probably not the most cost effective strategy.

A lender will mostly want to see that you’ll be able to make your repayments on time. You can use our personal loan repayments calculator to work out if a personal loan suits your budget.

What lenders offer the best personal loans in Melbourne?

This question can be tricky to answer, as each lender has both their pros and cons. You also need to consider that each type of lender works differently for different budgets. So, we’ll let you be the judge on which lender is the best choice for you.

The big banks

We all know the big banks, Westpac, ANZ, CommBank, etc. One of the big benefits of going with a big bank is that you’ll get to visit a branch and speak to a bank manege face-to-face. You also might be offered more generous personal loan terms and have access to higher loan limits. The downside is that big banks also usually mean big rates and big fees, so you’ll need to consider whether your budget would be able to manage.

Credit Unions

Think of credit unions as an alternative to a traditional lender because they’re not for profit organisations. This means you could be offered more competitive rates and fees, since these organisations tend to pass on their profits to members. Which brings us to the catch with credit unions, in order to have access to a personal loan, you will have to become a member and pay a small fee.

Peer to peer lenders

Last up are peer to peer (P2P) lenders, where strangers help strangers with their spending needs. One of the big benefits you’ll find with peer to peer lenders is the competitive interest rates and lower fees. However, we should mention that these competitive interest rates are often reserved for the most creditworthy customers. P2P lenders also have lower borrowing limits of up to $30,000 and short terms of up to 3 years.

Are there any traps to avoid with a personal loan?

Although personal loans can help you fund big ticket items, there are a few traps you’ll want to avoid, such as:

  • Borrowing more than you need - So you’ve planned a $50K reno and then decide to add another $10K on top of it for a holiday, while it sounds fine, just remember, the more you borrow, the more interest you’ll pay.
  • Spending money elsewhere - If you find that you have money left over, it can be tempting to splurge with a shopping trip. Instead of falling into this trap after you’ve hit your spending goal, put the money back into the loan in one lump sum repayment. That way, you’ll be debt-free faster and reduce the interest you pay.
  • Paying more interest than necessary - You don’t have to take the first personal loan deal you see, especially if it’s possible to find a better rate elsewhere. Do your research by shopping around on personal loans so you don’t get stuck paying more than you need to.
  • Being late with repayments - This an easy mistake to make when paying your loan off, but slipping off can really add late repayment fees to your bill. To avoid this, set up a direct debit through your online banking app so you never miss a payment.

What do I need to apply for a personal loan in Melbourne?

So you’ve found the perfect loan and you’re ready to apply, now you’ll need to gather all the necessary documents to lodge your application. While every lender is different, some of the most common things you’ll need are:

  • Proof of income - Lenders will want to see that you have a steady income that you’ll use to pay your loan off. This usually means having payslips or a tax return to show.
  • Proof of savings - Most lenders also need to see proof of genuine savings, this shows that you can be responsible with money. Genuine savings are proof that you’ve been making regular deposits into your savings account over a period of time.
  • Other liabilities you might have -This is to determine how much of a risk you are and can mean your mortgage or credit card debt.

Personal Loan Reviews

Newcastle Permanent Unsecured Personal Loan
Overall 9/10
Good

Overall they are good but they don't take into account people work and can't answer phone calls even after you've asked to email instead

Read full review

Overall they are good but they don't take into account people work and can't answer phone calls even after you've asked to email instead

Price
7/10
Features
7/10
Customer service
8/10
Convenience
8/10
Trust
8/10
Less
Shaye, New South Wales, reviewed 13 days ago
Commonwealth Bank Unsecured Personal Loan
Overall 3/10
At least help us out with ATM fees

Overall I'm not too happy with the banks in general. I think they are greedy and don't offer much incentives

Read full review

Overall I'm not too happy with the banks in general. I think they are greedy and don't offer much incentives

Price
2/10
Features
3/10
Convenience
4/10
Trust
3/10
Less
Justin, Western Australia, reviewed 13 days ago
Commonwealth Bank Personal Loan
Overall 6/10
Easy service but not the best fees

Commonwealth bank being the largest bank has the comfort of being reliable and was also willing to provide a loan when other banks were not. Customer service is easy to get in contact with. I wouldn't say the fees are the best in the market though.

Read full review

Commonwealth bank being the largest bank has the comfort of being reliable and was also willing to provide a loan when other banks were not. Customer service is easy to get in contact with. I wouldn't say the fees are the best in the market though.

Price
5/10
Customer service
6/10
Convenience
9/10
Trust
7/10
Less
Joshua, Victoria, reviewed about 2 months ago

More personal loan reviews

View all personal loan guides

Woman Comparing Debt Consolidation Loans
Pros & cons of a debt consolidation loan

If you’ve got multiple debts and are struggling to keep up, a debt consolidation loan can seem like a lifeline. Rolling all your debts into one can streamline your repayments and potentially reduce...

My Project (1)
Secured vs. unsecured personal loans: how to choose what's best for you

If you’re thinking about getting a personal loan, chances are that you’ve come across “secured” and “unsecured” loans, but maybe you weren’t exactly sure what the difference between the two loan ty...

Meca Banner Personal Loans 2 20231122 224052
What is a green loan and where can I get one?

With sustainability at the top of mind for many Australians, getting a green loan can be a way to make costly lifestyle changes without blowing the bank. 

Easy Personal Loans
Your guide to easy personal loans

Wouldn’t it be nice if things were all just a little bit easier? When it comes to personal loans, we sure think so.

Long Term Personal Loans
Your guide to long term personal loans

When we talk about loans, we spend a lot of time talking about what sets them apart or why you might want to go with one over another. What we don’t tend to talk about as much is why you might choo...

Personal Loan Ideas
A guide to low income personal loans

If you’re earning a lower income, a personal loan might not feel like a possibility. However, income is just one of many tools used to calculate whether or not you can get a loan. At Mozo, we’re he...

Business Handshake
Self-employed personal loans: your questions answered

The freedom of working for yourself also comes with a lot of hard work, especially when it comes to sorting out your finances.

Personal Loans Eligibility Your Top Questions Answered Original Min
Personal loans & eligibility: Your top questions answered

We get it. Personal loan eligibility criteria aren't always so clear cut. So, before you even consider applying for a personal loan, it's super important to shop around and compare your options unt...

Credit Score, Credit File, Credit History What's The Difference
Credit score, credit file, credit history - what's the difference?

Understanding credit and all of its terms can be confusing, especially when they all sound so similar. Terms like credit score, credit file and credit history are all as equally important to unders...

More personal loan guides

Calculators

Switch and Save

See calculator

Repayment calculator

See calculator

Comparison calculator

See calculator