Unsecured personal loans are like borrowing without the need for collateral. Why not dive into loan comparisons today and make it an adventure?
Excellent Credit
OurMoneyMarket offer competitive low rates for borrowers with excellent credit on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^.
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
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
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
Fixed, Unsecured
Heritage Bank discounted rates for borrowers with excellent credit. Available loans starting from $5,000 to $50,000. 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 5 year $30,000 loan at 8.99% would cost $37,606.30 including fees.
Read our Mozo Review to learn more about the Heritage Bank Standard Personal Loan
Unsecured, Fixed, Exceptional Credit
Borrow from $5,000 to $50,000 with a Plenti Unsecured Personal Loan. Flexible loan terms of 1 - 7 years. $0 Monthly, $0 Early Repayment Fees and $0 Exit Fees. Get a rate estimate without impacting your credit score. Once approved, you could receive your funds in as little as 24hrs.
Repayment terms from 3 years to 7 years. Representative example: a 3 year $10,000 loan at 6.57% would cost $11,340.11 including fees.
Read our Mozo Review to learn more about the Plenti Personal Loan
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 5.86% would cost $35,256.99 including fees.
Read our Mozo Review to learn more about the Harmoney Debt Consolidation Loan
Very Good Credit
Competitive low rates on loans up to $75,000 for very good credit. Free extra repayments. Fee-free redraw facility. Winner of of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.49% would cost $37,171.08 including fees.
Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
Unsecured, Fixed, Excellent Credit
Borrow from $5,000 to $50,000 with a Plenti Unsecured Personal Loan. Flexible loan terms of 1 - 7 years. $0 Monthly, $0 Early Repayment Fees and $0 Exit Fees. Get a rate estimate without impacting your credit score. Once approved, you could receive your funds in as little as 24hrs.
Repayment terms from 3 years to 7 years. Representative example: a 3 year $10,000 loan at 7.99% would cost $11,574.43 including fees.
Read our Mozo Review to learn more about the Plenti Personal Loan
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Looking for a suitable personal loan with a fuss-free application process? Get started below to let LoanOptions.ai help you on your journey today.
^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.
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If you're looking for a personal loan but can't make up your mind about whether an unsecured loan is the right pick for your situation, you've come to the right place.
Get familiar with the ins and outs of borrowing with an unsecured personal loan in this expert guide which covers everything from why your credit rating is important, to the features to look out for.
An unsecured loan is a personal loan that lets you borrow money without having to put up an asset as collateral against it, such as your house or car. As the risk is higher for the lender, an unsecured personal loan may carry a higher interest rate, shorter loan term, and a lower maximum loan amount than a secured loan.
See how unsecured loans differ from secured personal loans.
Unsecured personal loans are a type of loan that can be used for just about anything (within reason of course). So, whether you're looking for a renovation loan for some kitchen updates, hoping to finance some extra study with a student loan, need a wedding loan to facilitate your dream nuptials or just want a holiday loan to jet-set around the globe for a stint, an unsecured loan could help you make your dreams a reality sooner.
Another popular use for unsecured personal loans is debt consolidation. A debt consolidation loan combines multiple loans or credit card debts into a single personal loan in order to manage your repayments more easily and save on interest costs.
You can apply for an unsecured loan at banks and other non-bank lenders, so you’ll want to shop around and compare your options to make sure you find the most competitive loan for your needs.
Key features of unsecured loans to compare include:
The interest rate - A fee you're charged for borrowing money, expressed as a percentage of the total amount of the loan.
Application fee - An upfront fee, generally between $0-$600.
Ongoing fees - A service fee, usually monthly, charged for the entire life fo your personal loan.
Added features, such as the ability to make extra repayments or pay off the loan early without penalty.
Many lenders will give you the option to choose a fixed or a variable rate for your unsecured personal loan. With unsecured loans there may not be a big difference between the interest rate of a variable rate loan and a fixed loan, the difference will be in the features like extra repayments, redraws and fees if you decide to pay out the loan early.
In Australia, lenders will typically let you borrow anywhere from $2,000 to $70,000 with an unsecured personal loan, although some lenders cap the loan amount at $50,000 and a few will let you borrow $100,000 or more. For larger loan amounts, you may need to consider a secured personal loan.
Unsecured loan terms are also often shorter (around 1 - 7 years) than they are for secured loans, which can reach up to 15 years.
Unlike a secured loan, where you may receive lower interest rates and fees if you use your car or home as collateral for the loan, no security is required to take out an unsecured personal loan. This means you can still borrow money even if you don't have a car or property to use as security, plus your assets won't be in the direct firing line of the provider if you can't repay the loan.
But, that doesn't mean there aren’t significant risks to consider.
The catch is you may pay higher rates and fees. And keep in mind that you are not entirely scot-free if you can't meet your repayments and default on an unsecured loan, as the lender can still take you to court to recover their loss.
Pondering the age-old question "to fix or not to fix"? Well, there’s no catch-all for whether you should choose to fix your unsecured loan rate or not. You’ll have to weigh it up for yourself.
Here's what you need to know about the two interest rate options to help you decide:
When it comes to choosing between a fixed or variable rate, you're never going to be able to predict what will happen in the market, so it’s a good idea to choose the rate that works best for your circumstances and future adaptability.
Although interest rates and fees are the top two considerations for an unsecured personal loan, you should also look for features that could give you added flexibility and even help you say goodbye to your debt sooner. Here are a few to keep your eyes peeled for:
Extra repayments: Pay off your unsecured loan faster by ensuring you sign up with a loan that gives you the option of 100% free extra repayments. This will allow you to make lump-sum payments any time you like.
Redraw facility: Another feature that can come in handy down the track is a redraw facility that allows you to dip into any extra payments you've made. But keep in mind that redrawing your extra repayments undoes your progress towards paying your loan off sooner and saving on interest.
Many borrowers make the mistake of focusing too much on finding the cheapest interest rate, assuming that makes for the best personal loan. It's important to check what additional fees come with an unsecured loan. There are a number of fees that can sting unsuspecting borrowers, so here are the main ones to watch out for:
Upfront fee: In Australia, it's quite common for lenders to charge an unsecured personal loan application fee, and in some cases, these can be quite hefty. Fees can be an upfront charge, usually from $100 to $600 or more, or sometimes the fee is charged as a percentage of your loan amount. Some lenders don't charge application fees, so it's important to shop around.
Account fees: Monthly fees for unsecured personal loans are typically around $10 a month, which might not seem like much, but over a 5 year term it will add up to $600. Many loans charge no account fee at all. If you're not keen on paying ongoing fees, look for a loan that has none.
Early repayment fee: Some unsecured loans charge a fee for repaying your loan earlier than the agreed fixed term. So if, for instance, you take out a 3 year unsecured personal loan but end up wanting to pay it off completely in year 2, you may be hit with a fee for doing this. These fees can be substantial, so if you think there's a chance you may be willing and able to pay off your loan early, it may be a good idea to choose one with no early repayment penalty.
An easy way to see how much an unsecured loan will cost is by looking at the comparison rate, which merges the interest rate with the fees to show you the 'true’ cost of the loan.
As you are not securing the loan with an asset, the only way a lender can determine how risky it will be to lend to you is through your credit rating. Because of this, a bad credit rating could make mainstream lenders knock back your application for an unsecured personal loan.
Lenders often tier unsecured personal loan rates based on credit rating, so if you have an excellent credit rating you may be able to access lower interest rates than someone with an average or poor credit rating. Lenders will check your credit rating when reviewing your loan application, so it's important that you check your credit report prior to applying and ensure that all the information is correct. Also, be mindful that every personal loan you apply for will leave a mark on your credit report.
Did you know you can get a free copy of your credit report each year? See here for details.
If you're smart about it and pay your repayments in full each month, an unsecured loan is a great way for you to build up a good credit history, which will mean when it comes time for you to borrow a larger amount for things like a house, it will be much easier for you to be approved for a home loan.
With no security to offer as a guarantee, getting approved for an unsecured personal loan can be more difficult than for a secured loan, as lenders generally have tougher lending criteria. To increase your chances of success, make sure you keep on top of any credit card and utility payments, reduce any credit card limits you don't use or need, be vigilant with your spending and diligently put aside money into your savings account. Anything you can do to show the lender that you're more than capable of repaying the loan will help.
Whether an unsecured loan or a credit card is better really depends on your financial situation and your money management ability.
Unsecured personal loans let you borrow an agreed amount and make regular, fixed repayments over a period of time to pay it off, so if you've taken out a 3 year loan you'll be debt-free in 3 years. Credit cards, on the other hand, don't come with a set repayment plan, so if you're not careful you can end up in debt for decades.
Another plus for unsecured loans is that interest rates are usually lower than credit card rates. And if you have an excellent credit rating, you may be able to access even more competitive unsecured loan rates.
Lastly, with an unsecured loan you'll have the option of choosing a variable or fixed interest rate, unlike credit cards which only come with variable rates.
For a full comparison, read our personal loans vs credit cards guide.
When you start your hunt for a competitive unsecured loan, don't automatically go for a bank personal loan. There are plenty of other loans from online lenders, mutuals and peer to peer lenders with great rates and features, due in part to lower overheads and not needing to pay dividends back to shareholders.
To really get the lowdown on a lender, head on over to our personal loan reviews section where thousands of customers just like you share their experiences, from customer service, to the product fees and features.
Applying online for an unsecured loan is a fairly quick and easy process. Most online application forms take less than 10 minutes to complete, and some lenders even offer a 1-minute rate estimate. Once you've submitted your application, the lender will process it and let you know whether it's approved or not. This can happen in as little as 24 hours, and in some cases, you may even be able to get your funds on the same day.
That’s easy. Once you have found the best unsecured personal loan for your needs on Mozo, you’ll be directed to the online application. Many lenders have fast 20-minute approvals so get all the info you’ll need like proof of employment, bank statements and utility bills, and apply.
An unsecured loan is a type of personal loan that doesn’t require the borrower to put up an asset as collateral. Like other loans, a borrower must pay back their debt over a fixed period of time (usually between 1 and 10 years), making regular repayments that cover both the interest that is charged and the balance being paid down. In some cases, borrowers can make extra repayments and pay down their loan ahead of time.
It is not about finding the best pet unsecured personal loan, but rather the best policy for you and your pet. You should consider your budget, along with your preferred term and loan amount, loan features and potential fees, to work out which unsecured personal will best suit
An unsecured personal loan can both help or hurt your credit rating, it all depends on how you pay it back. If you are a responsible borrower and always make your regular repayments on time, and even make extra repayments too, this looks good on your credit history. Alternatively if you miss repayments or even default on your loan, this can negatively affect your credit rating and your chances of borrowing later.
Depending on your credit score and the lender, you still may be able to take out an unsecured personal loan with ‘bad’ credit. Many Aussie personal loan lenders offer risk-based pricing where lower rates are given to borrowers with an excellent credit history and higher rates to those with worse credit. While this does benefit those with healthy credit, in some cases it also provides borrowers with unhealthy credit the opportunity to borrow. In saying that, it’s always better to borrow when your credit rating is healthier because you are likely to get a lower interest rate.
Unlike a secured personal loan, if you don’t pay back an unsecured loan the lender can’t repossess your assets. However, leaving an unsecured personal loan unpaid will damage your credit rating, which impacts your ability to borrow later on. Plus, the lender can also take legal action against you to make you pay back the loan.
The main advantage of an unsecured personal loan is that you don’t need to secure the loan with an asset like your home, car or savings. This means if you forfeit the loan you won’t have to forfeit any of your belongings. Another advantage is that your loan application may be approved faster, as the lender doesn’t have to evaluate an asset for security. Just remember though, because there is no requirement to put up any collateral, unsecured personal loans generally come with higher interest rates than secured options.
A secured loan is a type of personal loan that requires the borrower to put up an asset against the loan as collateral, in return for a lower rate. Alternatively, an unsecured personal loan doesn’t require an asset as collateral but often comes with a higher interest rate.
Yes, banks offer unsecured personal loans, as do credit unions and online lenders. Depending on what type of loan you are after, it may be beneficial to steer away from taking out a loan with a big bank as you may be able to snag a more competitive rate.
Yes, online unsecured personal loans are available to Aussie borrowers. With online loans, you can apply, get approved and manage your repayments all from your computer or even your smartphone. Plus, some of these types of lenders offer the most competitive personal loan rates on the Mozo database right now.
The customer service is amazing everytime I go in they have always helped and explained things to me I have never had a problem with them. Their interest rates aren't too bad
Read full reviewThe customer service is amazing everytime I go in they have always helped and explained things to me I have never had a problem with them. Their interest rates aren't too bad
I’ve always had great service interacting with BankSA. They always help me work out what would best suit my needs and they explain the process. Their products are easy to use.
Read full reviewI’ve always had great service interacting with BankSA. They always help me work out what would best suit my needs and they explain the process. Their products are easy to use.
As a 20-year-old student working part-time, my budget doesn’t stretch to a Tesla, but my eco-conscious spirit is always looking for ways to contribute positively to the planet. I recycle religiously, choose public transport over driving, support local produce, and my coffee cup is as reusable as my enthusiasm for sustainability. Discovering Bendigo Bank’s Secured Green Personal Loan felt like striking eco-gold. It’s not just a financial product; it’s a statement that aligns with my values. This loan enabled me to invest in a modest, energy-efficient vehicle without the guilt of a hefty carbon footprint or financial strain. The application process was surprisingly straightforward — no endless paperwork forests were harmed! Bendigo’s team understood my student constraints and environmental passion, offering me a plan that’s as green in ethos as it is in repayment. In a nutshell, Bendigo Bank’s green loan is perfect for young environmentalists like myself who want to make a difference while making ends meet. It’s a solid step towards a greener future, both for the planet and my finances
Read full reviewAs a 20-year-old student working part-time, my budget doesn’t stretch to a Tesla, but my eco-conscious spirit is always looking for ways to contribute positively to the planet. I recycle religiously, choose public transport over driving, support local produce, and my coffee cup is as reusable as my enthusiasm for sustainability. Discovering Bendigo Bank’s Secured Green Personal Loan felt like striking eco-gold. It’s not just a financial product; it’s a statement that aligns with my values. This loan enabled me to invest in a modest, energy-efficient vehicle without the guilt of a hefty carbon footprint or financial strain. The application process was surprisingly straightforward — no endless paperwork forests were harmed! Bendigo’s team understood my student constraints and environmental passion, offering me a plan that’s as green in ethos as it is in repayment. In a nutshell, Bendigo Bank’s green loan is perfect for young environmentalists like myself who want to make a difference while making ends meet. It’s a solid step towards a greener future, both for the planet and my finances
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