An unsecured personal loan means you don’t have to put up any collateral to borrow money. But because there is higher risk, you generally pay a higher interest rate. The idea behind an unsecured loan is that it can help you get what you need now, with a simple arrangement to pay for it over time. Start comparing unsecured personal loans from Australian lenders below.
Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure.
Featured Product
8.00% p.a.
8.21% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 8.00% would cost $36,647.51 including fees.
Excellent Credit
8.00% p.a.
8.21% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 8.00% would cost $36,647.51 including fees.
OurMoneyMarket offer competitive low rates on loans up to $50,000, plus free extra repayments and fee-free redraw facility.
7.65% p.a.to 26.99% p.a.
7.65% p.a.to 23.5% p.a.based on $30,000
over 5 years
Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 7.65% would cost $36,196.75 including fees.
Fixed
7.65% p.a.to 26.99% p.a.
7.65% p.a.to 23.5% p.a.based on $30,000
over 5 years
Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 7.65% would cost $36,196.75 including fees.
Personalised rates, no hidden fees and the option to redraw any extra repayments. Hassle free loans from $5-$45k on a 3 to 7 year term. Submit an application in 10 minutes and you're on your way. 2019 Mozo Experts Choice Award winner for Unsecured Personal Loans.^
5.75% p.a.to 21.99% p.a.
6.47% p.a.to 25.11% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,190.18 including fees.
Variable, Unsecured
5.75% p.a.to 21.99% p.a.
6.47% p.a.to 25.11% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,190.18 including fees.
Get a personalised rate quote in just 2 minutes, apply in just 7 minutes. Money transferred to your account the next business day. No exit or early repayment fees. Borrow up to $50,000.
7.45% p.a.to 16.95% p.a.
9.07% p.a.to 18.53% p.a.based on $30,000
over 5 years
Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 7.45% would cost $37,300.55 including fees.
Fixed
7.45% p.a.to 16.95% p.a.
9.07% p.a.to 18.53% p.a.based on $30,000
over 5 years
Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 7.45% would cost $37,300.55 including fees.
Use the “Get My Rate” feature on the NOW FINANCE website to lock in an upfront personalised interest rate that won’t affect your credit score. Perfect for loans over $10k and people aged 25 years or older.
7.95% p.a.to 19.45% p.a.
8.78% p.a.to 20.4% p.a.based on $30,000
over 5 years
Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 7.95% would cost $37,049.45 including fees.
Fixed
7.95% p.a.to 19.45% p.a.
8.78% p.a.to 20.4% p.a.based on $30,000
over 5 years
Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 7.95% would cost $37,049.45 including fees.
Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. Borrow between $5,000 and $50,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!
7.50% p.a.to 14.99% p.a.
9.51% p.a.to 12.71% p.a.based on $10,000
over 3 years
Terms from 2 to 3 years. Representative example: a 3 year $10,000 loan at 7.50% would cost $11,534.19 including fees.
Fixed
7.50% p.a.to 14.99% p.a.
9.51% p.a.to 12.71% p.a.based on $10,000
over 3 years
Terms from 2 to 3 years. Representative example: a 3 year $10,000 loan at 7.50% would cost $11,534.19 including fees.
Be rewarded for your good credit history with low rates. Plus there are no ongoing fees and you can pay off your loan with no early repayment penalties. Simply apply online and get a quote in minutes. The monthly repayment amount above does not include the establishment fee and is based only on the advertised interest rate.
7.49% p.a.to 8.89% p.a.
9.50% p.a.to 10.91% p.a.based on $10,000
over 3 years
Terms from 1 to 2 years. Representative example: a n/a year $0 loan at 7.49% would cost $6,358.75 including fees.
Variable, Excellent Credit
7.49% p.a.to 8.89% p.a.
9.50% p.a.to 10.91% p.a.based on $10,000
over 3 years
Terms from 1 to 2 years. Representative example: a n/a year $0 loan at 7.49% would cost $6,358.75 including fees.
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. To qualify, simply earn above $25,000 and you’ll be on the way to start spending. Winner of a Mozo Experts Choice Award 2019 in the Unsecured Personal Loan category^.
9.89% p.a.
10.14% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 9.89% would cost $38,322.33 including fees.
Fixed
9.89% p.a.
10.14% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 9.89% would cost $38,322.33 including fees.
No account keeping fees. Apply online and get a fast decision, normally within 24 hours
12.45% p.a.
13.32% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 12.45% would cost $41,200.53 including fees.
Fixed
12.45% p.a.
13.32% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 12.45% would cost $41,200.53 including fees.
This big bank loan allows you to borrow up to $50,000 and lock in your rate to help budget for your monthly repayments. And if you ever want a closer look at your repayment details, ANZ Internet Banking helps you manage your loan all in the one place. To be eligible you must earn a minimum of $15,000, be over 18 and be an Australian resident.
9.35% p.a.
9.67% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 9.35% would cost $37,896.54 including fees.
Very Good Credit
9.35% p.a.
9.67% p.a.based on $30,000
over 5 years
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 9.35% would cost $37,896.54 including fees.
A simple, low rate online personal loan for any worthwhile purpose. No monthly account fees, no early payout fees, so you can pay it off at any time, at no extra cost. To qualify, simply earn more than $25,000 and have no prior defaults.
8.99% p.a.
9.62% p.a.based on $30,000
over 5 years
Terms from 1 to 5 years. Representative example: a n/a year $0 loan at 8.99% would cost $7,856.30 including fees.
Fixed, Unsecured
8.99% p.a.
9.62% p.a.based on $30,000
over 5 years
Terms from 1 to 5 years. Representative example: a n/a year $0 loan at 8.99% would cost $7,856.30 including fees.
Heritage Bank discounted rates for loans starting from $10,000 and a choice of loan terms up to ten years, with a fixed rate for the first five years.
^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.
How much could you save by switching your personal loan? Compare savings from over 200 personal loans. Find out in a few clicks.
Reviews, news, tips and guides to help find the best personal loan for you.
If you're looking to borrow money but can't make up your mind whether an unsecured personal loan is the right pick for your situation, you've come to the right place.
Get familiar with the ins-an-outs of borrowing with a personal loan in this expert guide on everything you need to know about unsecured personal loans, 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 provide something you own as security, such as your house or car. As the risk is higher for the lender, an unsecured personal loan may have a higher interest rate, shorter loan term and lower maximum loan amount than a secured loan.
See how unsecured loans differ from secured personal loans.
Unsecured personal loans can be used for just about anything (within reason of course). So whether you want to renovate your kitchen, finance some extra study, facilitate your dream wedding or just 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, where you consolidate 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'll want to compare loans from both banks and non-bank lenders to make sure you find the most competitive loan for your needs. Key features to compare include the interest rate, application fee, ongoing fees and 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.
The catch is you may pay higher rates and fees. And keep in mind, 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"? Here's what you need to know about the two interest rate options to help you decide:
Fixed interest rate: With the rate locked in from the get go, a fixed rate loan helps you to more easily budget for your fortnightly or monthly repayments. There are a number of extremely competitive fixed rate personal loans on the market, with rates very much on a par with variable loans. But fixed rate personal loans can sometimes have less flexibility, such as not giving you the ability to make extra repayments, and some come with a break cost fee if you try to pay off your loan early.
Variable interest rate: A major drawcard of a variable rate loan is the ability to access more flexible options than you might be able to with a fixed rate loan, such as the ability to make extra repayments facility and access a redraw facility. Before choosing a variable loan however, make sure you can afford any potential rate rises. For instance, if you borrow $20,000 over 4 years and your 10% interest rate increases by 0.75 basis points, your monthly repayments will increase from $507 to $514. This might not seem like much but over 4 years that will cost you $347 extra in interest.^
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.
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 redrawing your extra repayments undoes the progress you made towards paying your loan off sooner and saving on interest.
Choice of repayments: Some lenders give you a choice of weekly, fortnightly or monthly repayments, allowing you to choose the schedule that best fits your pay cycle or lifestyle.
Many borrowers make the mistake of focusing too much on finding the cheapest interest rate and forgetting to check loan fees. 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 range from $100 to $500 or more, but some lenders charge a $0 application fee, so it pays to shop around.
Account fees: Monthly fees for unsecured personal loans are typically around $10 a month, but 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 quite 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.
^Calculations as of 4 November 2019
Most mainstream lenders will likely knock back your application for an unsecured personal loan if you have a bad credit rating. 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.
Lenders often have tiered 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 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 home, 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 to use an unsecured loan or a credit card really depends on your 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, as there are plenty of other loans from online lenders, mutuals and peer to peer lenders with great rates and features, due to the fact that they have lower overheads and don't need to pay dividends back to shareholders.
Mozo's personal loan comparisons above let you enter how much you want to borrow to see what rates are available from different lenders and how much your monthly repayments will be.
And 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 experience from the 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.
Customer service was great when I needed to contact them about an issue I had with payment. Interest rates being variable are a bit high, but that's the way the loan is. Could shop around for lower rates at another bank. It's Commonwealth, so being a big bank you can trust them.
Read full reviewCustomer service was great when I needed to contact them about an issue I had with payment. Interest rates being variable are a bit high, but that's the way the loan is. Could shop around for lower rates at another bank. It's Commonwealth, so being a big bank you can trust them.
Money was taken out of my partners account, unauthorized let me add, by ANZ. He has a payment plan with ANZ for his loan that he has been paying and this morning ANZ decided to take more than what that agreed amount was! ANZ took 90% of his work wage and I'm furious. We both are as we need to pay rent and bills and now we cannot and from the other reviews I've seen on Facebook and here I'm severely disappointed. How dare ANZ take money that isn't theirs. So much for your agreements!
Read full reviewMoney was taken out of my partners account, unauthorized let me add, by ANZ. He has a payment plan with ANZ for his loan that he has been paying and this morning ANZ decided to take more than what that agreed amount was! ANZ took 90% of his work wage and I'm furious. We both are as we need to pay rent and bills and now we cannot and from the other reviews I've seen on Facebook and here I'm severely disappointed. How dare ANZ take money that isn't theirs. So much for your agreements!
I like this credit union as it has competitive personal loan rates. Even better rates if you spend over 20G on a new car! Is easily accessible in NT and SA, not so good in other states! I make higher payments regularly which enables me to redraw funds when times are tight! The customer service is very efficient and effective.
Read full reviewI like this credit union as it has competitive personal loan rates. Even better rates if you spend over 20G on a new car! Is easily accessible in NT and SA, not so good in other states! I make higher payments regularly which enables me to redraw funds when times are tight! The customer service is very efficient and effective.
