Your selected personal loans
Whether you're looking to fund a new car, holiday or consolidate debt, it's important to compare a variety of personal loan lenders before deciding on one. Trusted by Australians since 2008, Mozo helps you compare personal loan interest rates, fees, loan features, calculate repaymemts and more.
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
Your selected personal loans
Excellent Credit
Competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 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 our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
Your selected personal loans
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
Your selected personal loans
Excellent Credit
Travel the globe with competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice award for 2024 ^. 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.
Your selected personal loans
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.
Read our Mozo Review to learn more about the Jacaranda Finance Express Personal Loan
Your selected personal loans
Competitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.
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.
Your selected personal loans
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.
Your selected personal loans
Mozo has partnered up with LoanOptions.ai, one of Australia’s most powerful tools for finding the loan options that are right for you.
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.
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Australia’s inflation rate continues to be above forecast at 3.6% as of April (ABS) and yet some economists are seeing a silver lining in the Aussie economy: there has been growth because of stockpiled savings, a resilient job market and the expectation that interest rates will eventually fall.
So while it might not be the perfect time to borrow money, for those with a need and who are in a position to do so, there are some good personal loan offers available. The market remains steady.
As for averages, the current average personal loan interest rate for an unsecured loan in the Mozo database is 10.48% p.a. and 9.09% p.a. for a secured loan.
But as always, there’s more than just the interest rate to factor in when taking out a personal loan. You’ll also want to consider the loan term, loan amount, features, and fees, plus decide whether you’d like a secured (requires a security asset) or an unsecured loan (doesn’t require a security asset).
If you’re looking for a low-interest rate, here are some of the current lowest loan rates (based on $30,000 over 5 years) in June 2024 that we track here at Mozo:
Lowest variable rate: Community First Bank Home Improvement Loan – 6.54% p.a. (7.60% p.a. comparison rate*) for home renovations
Lowest fixed rate: Harmoney Unsecured Personal Loan – fixed rates from 5.76% p.a. (6.55% p.a. comparison rate*)
Lowest Big 4 (variable rate): ANZ Unsecured Personal Loan (Variable) – 7.49% p.a. (8.18% p.a. comparison rate*)
Lowest variable rate: Illawarra Credit Union Online Personal Loan Package – 6.00% p.a. (6.64% p.a. comparison rate*)
Lowest fixed rate: Bank of Melbourne Secured Personal loan (Fixed) – 6.49% p.a. (7.61% p.a. comparison rate*), BankSA Secured Personal Loan (Fixed) – 6.49% p.a. (7.61% p.a. comparison rate*), Newcastle Permanent Secured Fixed Loan – 6.49% p.a. (8.21% p.a. comparison), St.George Secured Personal Loan (Fixed) – 6.49% p.a. (7.61% p.a. comparison rate*)
Lowest Big 4 (fixed rate): Commonwealth Bank Secured Personal Loan – 6.99% p.a. (8.40% p.a. comparison rate*)
Lowest green loan (variable): Police Credit Union’s Solar Eco Loan (Green, Variable, Unsecured) – 6.24% p.a. (6.24% p.a. comparison rate*)
Lowest green loan (fixed): Bendigo Bank Green Personal Loan (Fixed, Secured) – 5.49% p.a. (5.84% p.a. comparison rate*) & Northern Inland Credit Union Green Loan (Home Improvement, Fixed, Unsecured) – 5.49% p.a. (n/a comparison rate*)
Finding the right personal loan for your needs can be tricky, so we’re here to help guide you. We’re running you through all the factors you need to consider when looking for a competitive personal loan in Australia.
A personal loan allows you to borrow a lump sum of money and then repay that amount (plus interest) in instalments over a set period of time. It’s likely you’ll repay your personal loan in monthly instalments over a period of 1-5 years, depending on terms.
A personal loan is generally for a lower amount than a home loan and can be useful for lump sums of between $2,000 and $100,000 – which can be too big to put on a credit card.
As long as you meet your monthly repayments, you’ll know how long you’ll have debt and approximately how much interest you’ll pay from the outset.
In Australia, personal loans can be used to help fund all sorts of things. However, they’re commonly taken out for big expenses and can be used if you need a car loan, a holiday loan or a home renovation loan, plus it can be used as a debt consolidation loan.
There are many things to keep in mind when comparing personal loans, from the interest rate to fees, features and special offers. Here are the main factors to consider:
The comparison rate factors in both the interest rate and fees you’ll be charged on the personal loan, so you should weigh up your options based on the comparison rate and not just the headline rate. That way, you’ll have a more accurate idea of the full cost of the loan.
The comparison rate is generally based on a set scenario (usually a $30,000 loan paid off over 5 years or a $10,000 loan over 3 years) so your actual loan might be slightly different. Use our personal loan repayment calculator to help work things out.
Features such as free extra repayments or a flexible repayment schedule can give you the opportunity to pay off your personal loan earlier and save on interest. Watch out for caveats such as early break costs, which could make paying your loan off too early a costly affair.
Some lenders offer a range of different interest rates depending on what kind of borrower you are. Generally, the better your credit history is, the better the interest rate you’ll get. So, if you’ve got a great credit rating, opting for a loan that offers tiered interest rates based on your credit score might help you snag a lower rate.
Here are three easy steps to help determine how much you should borrow:
While a lender may approve you for a large loan amount, it doesn’t mean you should take out that entire sum.
Mozo’s budget calculator can help you get a clearer picture of your current financial situation and determine how much money you have to work with after all your necessary expenses are taken out.
Once you’ve decided on a personal loan amount you’re comfortable with, use our personal loan repayments calculator to see what kind of borrowing scenario would work for you.
If you find that the amount you’re looking at borrowing will make your ongoing repayments far too steep, you might want to consider borrowing a smaller amount or opting for a longer term (which will make repayments smaller, but ultimately increase the interest you’ll pay).
For example:
Say you borrow $20,000 with a 10% interest rate. Using our personal loan repayments calculator, your monthly repayments would be either:
Keep in mind that while the longer term option might relieve some financial pressure each month, the downside is that you’ll pay $3,346 more in interest over the life of the personal loan.
Once you’ve figured out how much you can afford to borrow, it’s time to compare personal loans until you find one with a low interest rate and the right features to suit your individual needs.
Here are some different types of personal loans you can choose from depending on your needs:
With secured personal loans, you’ll need to put up your car, house or another valuable asset as security against the loan. Other eligible assets might include expensive jewellery or art.
Car loans are a common form of secured personal loans, as the car you’re paying off is used as security on the loan.
The benefit of secured personal loans is that they generally come with lower interest rates and fees compared to unsecured loans, as the collateral can act as cash and keep costs down on your actual loan.
But beware – if you take out a secured loan, the provider has the right to seize your assets if you default on the loan.
If you’d rather not risk losing your car or home, or you just don’t have any assets to secure your loan with, you could opt for an unsecured personal loan.
Unsecured loans don’t require you to guarantee the loan with any assets, but that means you are often left with higher interest rates and fees.
A personal loan can help you ditch debt – a debt consolidation loan lets you combine multiple debts (from multiple loans, stores or credit cards) into one loan.
This way, you’ll have just one regular repayment and interest rate to worry about instead of juggling multiple repayments, deadlines and amounts.
Once you’ve chosen a personal loan type to suit your borrowing needs, you'll need to think about the type of interest rate and features you want.
Choosing the right interest rate type to suit your individual needs and financial situation is vital when taking out a personal loan, and there are two main options: fixed and variable.
With a fixed rate loan, your interest rate stays the same for the life of your loan, making it easier to budget. This is an attractive option if you're worried about a rate hike down the track in a rocky financial climate.
Of course, there are a few cons. Fixed rates generally come with higher rates and fees, as well as less flexible features like a lack of extra repayments and redraw facilities. Fixed rate loans also often come with break cost fees if you decide to pay your loan off early.
On the other hand, with a variable rate loan, your interest rate could change at any time. This could put you at risk if your provider decides to hike up their personal loan variable rates.
However, the benefit of a variable rate loan is that they often come with lower rates and fees and more flexible features.
Here are some features you might come across when comparing personal loans:
You never know where you’ll be down the track financially. It’s good to have a personal loan with the ability to make extra repayments – this means that if you suddenly find yourself flush with cash, you can pay off your loan quicker.
Another handy feature is a redraw facility, as you never know when you’ll be hit up with unexpected bills. A redraw facility allows you to dip into any extra loan repayments you’ve made and redraw the money.
Flexible repayment options allow you to tailor them to your regular pay schedule. If your employer pays you fortnightly, you might opt for fortnightly loan repayments to match.
Hack: One benefit of fortnightly repayments is that you’ll wind up paying off more of the loan within a year as opposed to with monthly repayments.
For example, if your monthly repayments are $1,000, you’d pay off $12,000 in one year, whereas if your fortnightly repayments are $500, you’d pay off $13,000, as there are 26 fortnights in the year.
By going with fortnightly repayments you’d shave off an extra $1,000 for each year of the loan, helping to speed up the process of paying it off.
A personal loan allows you to borrow a lump sum of money and then repay that amount (plus interest on top) in instalments over a set period of time. Personal loans tend to be cheaper on average than, say, credit cards, which are seen as a typical alternative.
A personal loan can be useful for lump sums between $2,000 and $100,000, which are too big to put on a credit card. It’s also useful because as long as you meet your monthly repayments, you’ll know how long you’ll have debt and approximately how much interest you’ll pay from the beginning.
In Australia, personal loans can be used for pretty much whatever you need, though they are commonly used to fund an expensive item like a holiday, home renovation or new car. Personal loans can also be used to consolidate debt and to pay for unexpected expenses like medical bills.
Typical loan sums are between $2,000 and $100,000. While a lender may approve you for a considerable loan amount, that doesn't mean you should automatically take out that entire sum. Use Mozo's budget calculator to get a clear picture of your financial situation and determine how much money you have to play with after all your expenses.
This will depend on the type of loan you apply for. If you apply for a secured personal loan, you'll have to provide an asset, like a car, to use as security against the loan. Although this does give your lender the right to repossess your asset if you default on the loan, the good news is secured personal loans typically come with lower rates.
On the other hand, if you opt for an unsecured personal loan, you won’t have to provide any security. However, unsecured personal loans usually come with higher interest rates.
In our personal loan table at the top of this page, the comparison rate sits to the right of the interest rate and is a quick way of comparing the cost of the personal loan once both the interest rate and fees are combined. The comparison rate is often coined as showing the 'true' cost of a loan.
There’s no easy answer to this question, as it will depend on your financial circumstance and what you’re looking for. So to help you make a decision, we’ve jotted some pros and cons for different types of lenders.
This includes the big four banks, Westpac, ANZ, NAB and CommBank, plus other major lenders like St George, Bankwest, HSBC and ING.
An alternative to the big banks are smaller credit unions. These are not for profit organisations that are funded by their members.
While you still might be able to get a personal loan with bad credit, it’s not always the best idea as you’ll often be charged super high rates and fees. Thanks to the rollout of comprehensive credit reporting (CCR), many lenders have already begun assessing a borrower’s credibility based on their credit history.
In this case, it could be worth repairing your credit history first before applying for a loan.
Yes, pensioners can take out a personal loan, but it can be tricky to get approved. If you're a pensioner looking to take out a personal loan, you’ll find that there are limited options. This is because it’s harder to prove to a lender that you can make your repayments if you no longer have a regular income.
However, if you’ve got some extra cash stashed away in an account that can be put towards your repayments, you might be in a better position to negotiate with a lender and have better chances of success.
If you come to find that you've been rejected for a personal loan, it's best not to immediately apply for another. Each time you’re rejected for a loan, it goes on your credit history, potentially making it even harder to get approved next time.
The first thing you’ll need to do is assess why you’ve been rejected. Some of the more common reasons for being rejected include having a:
These are all things that might impact your ability to repay your loan in the future.
Your next step should be to make adjustments to your application to ensure that you aren’t rejected again. This could mean cleaning up your credit history, reassessing your budget and borrowing capacity to make sure you can afford the loan or trying to add a little more to your savings stash.
The thing to remember about any kind of personal credit is that you'll eventually have to pay the money back. Here are some tips to help you avoid some of the biggest borrowing traps:
Our loan went through quite quickly and with no problems, there are no monthly fees but we did pay an extremley high initial admin fee of $1300 on a 40,000 loan.
Read full reviewOur loan went through quite quickly and with no problems, there are no monthly fees but we did pay an extremley high initial admin fee of $1300 on a 40,000 loan.
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 reviewOverall 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
Overall I'm not too happy with the banks in general. I think they are greedy and don't offer much incentives
Read full reviewOverall I'm not too happy with the banks in general. I think they are greedy and don't offer much incentives
Your selected personal loans