melbourne personal loans

Personal Loans Melbourne 

Melbourne is filled with buzzing cafes, botanical gardens and culture. But to help you experience your life as Melburnian to the fullest, a personal loan might just be the ticket.

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What can I use a personal loan for?

Whether it’s a dream wedding at the Yarra Valley or a reno on your new Fitzroy apartment, a personal loan can be used for many of life’s dream milestones.

How much can I borrow with a personal loan?

That depends on your borrowing power, which comes down to a few factors, including your income, credit score and and current debts.

Where do I find the best personal loans in Melbourne?

You can get them from big banks, local lenders and even online! With our comparison tool, you can compare interest rates, fees and other loan features. Then, once you’ve found the right loan for you click the ‘go to site’ button. This will bring up the lender’s site where you can start your application.

If you need a little more info on the Melbourne personal loan scene before you start, read our handy FAQs section below.

Melbourne personal loan comparisons on Mozo - last updated 16 May 2022

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

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 7.89% p.a.
    6.39% p.a.to 8.49% p.a.based on $30,000
    over 5 years

    With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.

    Compare
    Details
  • Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% 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 5.35% would cost $34,832.61 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.45% p.a.
    6.79% p.a.to 17.86% p.a.based on $30,000
    over 5 years

    Wisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.

    Compare
    Details
  • Green Loan

    interest rate
    comparison rate
    Monthly repayment
    5.79% p.a.
    6.36% p.a.based on $30,000
    over 5 years

    Handypay offer flexible green loans up to $75,000 for Excellent Credit or better. Handypay is a specialist home improvement plan provider.

    Repayment terms from 1 year to 10 years. Representative example: a 5 year $30,000 loan at 5.79% would cost $34,873.55 including fees.

    Compare
    Details
  • Secured Car Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.79% p.a.
    7.16% p.a.based on $30,000
    over 5 years

    Reach your goal sooner without being penalised with $0 early payout fee. $0 monthly fees. Choose to make either monthly, fortnightly or weekly repayments to suit your income and budget. Winners of Australia's Best Large Credit Union in 2020.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.79% would cost $35,729.09 including fees.

    Compare
    Details
  • Standard Personal Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    7.99% p.a.
    8.62% p.a.based on $30,000
    over 5 years

    Heritage Bank discounted rates for borrowers with excellent credit. Available loans starting from $5,000 to $25,000. 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 n/a year $0 loan at 7.99% would cost $6,988.90 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Tier 1 Credit, Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.45% p.a.to 10.99% p.a.
    6.45% p.a.to 11.71% p.a.based on $10,000
    over 3 years

    Be rewarded for your good credit history with low rates. No ongoing fees. Pay off your loan with no early repayment penalties. Apply online and get a quote in minutes

    Repayment terms from 2 years to 5 years. Representative example: a 3 year $10,000 loan at 6.45% would cost $11,025.45 including fees.

    Compare
    Details
  • Personal Loan

    Variable

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.to 25.99% p.a.
    6.68% p.a.to 29.2% p.a.based on $30,000
    over 5 years

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,370.18 including fees.

    Compare
    Details
  • Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.to 25.99% p.a.
    6.68% p.a.to 29.2% p.a.based on $30,000
    over 5 years

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,370.18 including fees.

    Compare
    Details
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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.

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

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FAQ

How to find the best personal loan in Melbourne

If you live in Melbourne, you’ll soon find that you’re spoilt for choice when it comes to finding the best personal loan for all your spending needs, making the task much harder. But don’t worry, we’ve taken the hassle out of choosing the right option 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.

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

St.George Personal Loan
Overall 8/10
Not bad but could be better

The interest rate does seem higher than other banks. I would love it to be more competitive

Read full review

The interest rate does seem higher than other banks. I would love it to be more competitive

Price
6/10
Customer service
7/10
Convenience
9/10
Trust
8/10
Less
Liza, New South Wales, reviewed 14 days ago
Commonwealth Bank Personal Loan
Overall 4/10
Beware: They sold me Junk Insurance

Took out a $10,000 personal loan for a medical procedure. I’ve been a lifelong customer of Commonwealth Bank and thought they’d offered me a good package as this is the first and only loan I’ve had. Was unknowingly sold junk insurance and am now part of a class-action suit for a refund of the insurance and interest they charged. Here’s hoping they do the right thing!

Read full review

Took out a $10,000 personal loan for a medical procedure. I’ve been a lifelong customer of Commonwealth Bank and thought they’d offered me a good package as this is the first and only loan I’ve had. Was unknowingly sold junk insurance and am now part of a class-action suit for a refund of the insurance and interest they charged. Here’s hoping they do the right thing!

Price
4/10
Features
3/10
Customer service
7/10
Convenience
7/10
Trust
2/10
Less
Stephanie, New South Wales, reviewed 19 days ago
Bendigo Bank Unsecured Personal Loan
Overall 10/10
The bank who cares

They are very transparent with their fee's and we were able to get an unsecured loan to pay off our credit card and pay for a trip to England when my father died. We only had one person who was on a permanent wage and don't live in a home we own. No mortgage and we've managed to have it almost paid off in 4 years

Read full review

They are very transparent with their fee's and we were able to get an unsecured loan to pay off our credit card and pay for a trip to England when my father died. We only had one person who was on a permanent wage and don't live in a home we own. No mortgage and we've managed to have it almost paid off in 4 years

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Michelle, New South Wales, reviewed about 1 month ago

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