Cheap personal loans

Looking for a personal loan that doesn't break the bank? Spend less on rates and fees by comparing cheap personal loans below*.

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Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
Plenti Personal Loan

From 6.39% (fixed)
6.39%
$5,000
3 to 7 years
$0 to $999
$35
You'll receive a fixed rate between 6.39% p.a. and 17.89% p.a. based on your risk profile.
A flexible loan with amounts from $5,000 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.
Alex Bank Personal Loan

From 5.45% (fixed)
5.45%
$2,100
6 months to 5 years
$0 (Waived $295 establishment fee)
$0
You'll receive a fixed interest rate from 5.45% p.a. to 19.99% p.a. based on your risk profile
Borrow between $2,100 and $30,000 from 6 months to 5 years. Note: The $295 establishment fee will be waived for loan applications submitted by 30 September 2021.
OurMoneyMarket Personal Loan

From 5.45% (fixed)
6.07%
$2,001
1 to 7 years
From $250
$0
You'll receive a fixed rate from 5.45% p.a. to 20.99% p.a. based on your risk profile.
A personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.

⭐ Finder Exclusive: Apply before September 30th 2021 to secure a discounted rate of 5.45% p.a. (comparison rate: 6.07% p.a.) for the first 12 months on loans over $35,000. T&Cs apply.
NOW Finance No Fee Unsecured Personal Loan

From 5.95% (fixed)
5.95%
$5,000
18 months to 7 years
No Establishment Fee
$0
You'll receive a fixed rate between 5.95% p.a. and 17.95% p.a. based on your risk profile
Borrow from $5,000 to $7,999 with loan terms between 18 months and 3 years or borrow $8,000 to $50,000 with loan terms between 18 months and 7 years.

⭐ Finder Exclusive: Apply and settle a NOW Finance debt consolidation loan via Finder by 30 September 2021 for your chance to win $2000 paid off your debt. T&Cs apply.
Harmoney Unsecured Personal Loan

From 5.35% (fixed)
6.14%
$2,000
3 to 5 years
$575 ($275 for loans of below $5,000)
$0
You'll receive a fixed rate between 5.35% p.a. and 19.09% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.
Citi Personal Loan Plus
8.90% (variable)
9.18%
$5,000
3 to 5 years
$199
$0
You'll receive a guaranteed variable rate of 8.90% p.a. with a comparison rate of 9.18% p.a. if you're approved.
A credit limit up to $75,000 that you can continue to draw down over terms up to 5 years. Note: Monthly account service fee will be waived for applications submitted before 30 September 2021. The interest rate doesn’t change based on your risk profile, so you know your rate before you apply.
NAB Personal Loan Unsecured Fixed

From 6.99% (fixed)
7.91%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. (7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
Symple Loans Personal Loan

From 5.75% (variable)
6.47%
$5,000
1 to 7 years
from 0% to 5% of the loan amount
$10

You'll receive a variable rate from 5.75% p.a. to 25.99% p.a.

Borrow up to $50,000 and earn 1 Qantas Point for every $1 borrowed.

⭐Special Offer: Earn up to 50,000 Qantas Points with a personal loan from Symple.
Wisr Personal Loan ($5,000 to $30,000)

From 6.49% (fixed)
6.49%
$5,000
3 to 7 years
$0 - Waived Establishment Fee
$0
You'll receive a fixed rate between 6.49% p.a. and 20.95% p.a. based on your risk profile
A loan from $5,000 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.

⭐Special Offer:The $595 establishment will be waived for unsecured personal loans between $5,000 and $30,000. Offer ends 30 September 2021. T&Cs apply.
Wisr  Personal Loan ($30,001 to $64,000)

From 6.49% (fixed)
7.11%
$30,001
3 to 7 years
$595
$0
You'll receive a fixed rate between 6.49% p.a. and 20.95% p.a. based on your risk profile
A loan from $30,001 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.
ANZ Fixed Rate Personal Loan
8.99% (fixed)
9.88%
$5,000
1 to 7 years
$150
$10
You'll receive a guaranteed rate of 8.99% p.a. with a comparison rate of 9.88% p.a. if you're approved.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

⭐Special Offer: Secure a reduced interest rate of 8.99% p.a. for a limited time only. Apply for up to $50,000 to use for a variety of purposes without needing to add security.
SocietyOne Unsecured Personal Loan

From 5.95% (fixed)
5.95%
$5,000
2 to 5 years
from $0 to $595
$0
You'll receive a fixed rate between 5.95% p.a. and 19.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
Heritage Bank Fixed Personal Loan
7.99% (fixed)
8.62%
$5,000
1 to 7 years
$200
$5
Choose a fixed rate loan and receive a comparison rate of 8.62% p.a.
Fixed rate loans are available up to $100,000 on terms from 1 to 7 years.
Great Southern Bank Unsecured Fixed Rate Personal Loan
9.39% (fixed)
9.64%
$5,000
1 to 7 years
$175
$0
You'll receive a guaranteed rate of 9.39% p.a. with a comparison rate of 9.64% p.a. if you're approved.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
Latitude Personal Loan (Unsecured)

From 7.99% (fixed)
9.24%
$3,000
1 to 7 years
$250 (Loans under $5000 - $140)
$13
You'll receive a fixed rate between 7.99% p.a. and 22.99% p.a. based on your risk profile
Apply for what you need from $3,000 and use it for a range of purposes. Repay weekly, fortnightly or monthly. You can check your interest rate before applying with no impact to your credit score.
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Must read: Looking for the cheapest personal loan?

There isn't a single cheap personal loan that suits every borrower. While the lowest interest rate makes your loan cheaper, there are many other factors you will need to consider. This includes fees and future rate changes. It is also important to compare loans instead of settling for the first one you find. Keep in mind that we don't compare every product in the market. But our tools and information will equip you to compare your options and find the cheapest personal loan.

If you're in the market for a cheap personal loan, there are more things to consider than the interest rate. The true cost of a loan will include establishment and monthly fees, as well as interest and any other additional charges. We've broken down what makes a personal loan truly competitive and how you can find a cheap one.

What makes a "cheap" personal loan?

This is relative to the type of loan you need. This is because interest rates vary a lot between different types of loans.

For instance, a secured car loan will generally have lower rates than an unsecured personal loan. But you can only apply for a secured car loan if you're looking to buy a car. You will also not be able to use the loan funds for any other purpose except for the purchase of the vehicle.

In short, your cost will first depend on the type of loan you need. If you're looking to fund your holiday or wedding, you could apply for an unsecured personal loan. With this loan, you don't have to attach an asset as security. This is an advantage if you don't wish to or don't have an asset.

While unsecured personal loans cost more than secured personal loans, you'll then be looking at finding a cheap loan within the unsecured personal loans bracket. This is where knowing what to look for in a cheap personal loan is important. One of the key factors is total costs, not just the interest rate.

What costs should I consider to find a cheap personal loan?

The actual cost of the loan is determined by more than just the interest rate. Before applying for a personal loan, you should look into the following:

  • Interest rate. This is the fee the lender will charge you for borrowing money. It is a percentage of the total amount you've borrowed. This rate is set by the lender and is based on the Reserve Bank of Australia's (RBA) official cash rate.
What you should know about interest rates:
  • While it is based on the RBA's official cash rate, it may be influenced by other factors as well. Depending on the lender, this could include your risk profile. This takes into consideration your credit score and personal circumstances (e.g. type of employment). Some lenders may not lend at all if your score isn't up to scratch, or if you don't have permanent employment. Others may make exceptions. To mitigate the risk of lending to someone with less than perfect credit or with variable employment and income, they may increase your interest rate. You could still get the loan, but likely at a higher rate.
  • Rates can also differ based on the lender. For instance, nonbanks and neobanks are known for their cheaper rates. This is because unlike banks and other traditional lenders, these lenders have fewer overheads and can provide lower rates on their loans.
  • Fees. This includes upfront fees like loan establishment fees, and ongoing fees like monthly account keeping fees. These fees will be added to your principal loan amount. It will, therefore, affect the size of your repayments.
  • The comparison rate. This rate factors in fees and charges, as well as the interest rate. It shows the true cost of the loan. This figure is usually displayed next to the interest rate, as a percentage.
What you should know about comparison rates:
  • The comparison rate is usually calculated with certain loan amounts and terms in mind. For instance, the display figure could be for a $10,000 loan with terms up to 3 years. This figure could change depending on your actual loan amount and terms. For instance, if you wish to borrow $15,000 for 4 years, the comparison rate won't be the same as the one displayed.
  • Additional charges. You might have to pay additional fees depending on the lender. For example, some lenders charge a fee if you want to make extra repayments. There may also be an additional document preparation fee you'll have to pay for.

That said, there are a few other factors, apart from cost, to consider when looking for a cheap personal loan. We've included a checklist below.

How do I work out the cost of a personal loan?

Your personal loan repayments will depend on the type of loan you choose as well as the loan term, loan amount, interest rate and any fees. Generally, low interest rate loans are considered to be cheaper. Although, when you include fees, this is not always the case. An interest rate can help you to get an idea of the cost of a loan but isn't the whole picture.

Remember depending on the loan amount and loan term you choose you could end up paying a different comparison rate.

To get an idea of what you might have to repay based on these variables, please see the table below.

This table is based on a fixed rate personal loan of $30,000 with $5 per month in fees:

Loan term
Interest rate
Monthly repayments
Total repayments
3 years6% p.a.$918$33,036
3 years8% p.a.$945$34,023
3 years11% p.a.$987$35,538
5 years6% p.a.$585$35,099
5 years8% p.a.$613$36,798
5 years11% p.a.$657$39,436

Source: moneysmart.gov.au

While the table above gives a good general indication as to what you might pay based on these rates and terms, the best way to get an idea of whether a personal loan is going to work out cheaply is by using our personal loans calculator:

If you wish to compare lenders, we've included a loan comparison calculator that can simplify the calculations for you:

Are there other features to consider besides the cost of the loan?

Now that you know what to account for when calculating the cost of your loan, you should also consider the following before applying:

  • Type of interest. Interest rates come in two forms: fixed and variable rates. They both come with benefits and drawbacks, which are important to consider. If you prefer predictable repayments, and want to know exactly what you'll pay every month, a fixed rate loan may be more suitable. If you have the budget for a rate that fluctuates every month, and want features like longer loan terms, a variable rate loan may be a better option.
  • Loan terms. Some lenders offer shorter loan terms of up to 5 years, while others offer 7 to 10 years. The loan terms you can choose depend on the type of interest you'll be paying. Variable rate loans typically have longer terms than fixed rate loans.
  • Loan amount. Check whether the minimum and maximum amounts will meet your needs. A loan with a maximum lending amount of $50,000 will not be suitable if you're looking to borrow $75,000.
  • Repayment flexibility. Check whether you'll be able to make additional repayments or pay off the entire loan amount early without penalty. This can help you save money in the long run.

What are the pros and cons of a cheap personal loan?

Pros

  • Lower cost than other forms of personal loans
  • Generally lower cost than a credit card
  • You can pay for otherwise out of reach personal expenses, while also being able to afford the repayments

Cons

  • "Cheap" is relative, and some "cheap" loans may still end up being too expensive for your budget
  • Cheaper loans may have fewer additional features and flexibility than higher cost loans
  • This applies for any loan in general, but you're entering into a medium- to long-term debt agreement. This can have financial and legal consequences

What types of personal loans are available and how cheap are they?

Here's an overview of some types of loans offered by lenders:

Below is a rate guide for the personal loan types outlined above:

  • Secured car loans. Rates may go as low as 4% p.a. or as high as 14% p.a. If you are a high-risk borrower with a bad credit score, the maximum a lender can charge is 48% p.a.
  • Secured personal loans. Rates for secured loans can range from 5% p.a. to 28% p.a. Like secured car loans, the rate may differ based on your risk profile.
  • Unsecured personal loans. Rates for unsecured personal loans can range from 8% p.a. to 29.99% p.a. depending on the lender.
  • Peer-to-peer loans. Interest rates on peer-to-peer (P2P) loans will vary depending on your credit score. If you have a good credit score, you can get rates as low as 3% p.a. But if you have a low score, your rate may be around 12% p.a.

What can I use a cheap personal loan for?

Is it cheaper to pay off my loan early?

Making extra repayments can save you money over the life of the loan since you will pay less in interest and fees. However, some lenders will charge you a penalty or fee for doing so, which may cancel out any savings that you could make.

If you want the choice to repay your personal loan early, look for a lender that offers penalty-free additional repayments and early repayment. Loans that offer these features also tend to offer redraw facilities should your circumstances change and you wish to draw money back from your extra repayments.

What do I do if I can't afford my repayments?

If you can't afford your repayments on a personal loan, it's important that you contact your lender as soon as possible to let them know. Most lenders will have financial hardship measures in place for just these sorts of circumstances and may be able to negotiate a payment plan with you that is more manageable.

If you fail to do so, the lender may go ahead with repossessing your asset (if the loan is secured) or starting legal action against you.

What types of cheap personal loans are available?

Here is an overview of some of the loan types offered by lenders:

Secured car loansA loan used to purchase a vehicle, where the vehicle is used as security against the loan.
Secured personal loansA line of credit that is guaranteed against an asset you own or buy, such as your house or term deposit account.
Unsecured personal loansAllows you to borrow without using an asset as collateral.
Peer-to-peer loansWhen money is borrowed from an individual investor as opposed to a traditional lender.

Benefits of getting a cheap personal loan from a non-bank vs a bank

Non-banks/neobanks

  • Cheaper rates.Non-banks and neobanks tend to be online, which gives them less overhead than banks. Less overhead means that non-banks tend to be able to offer lower interest rates on their personal loans.

  • Quick approval. As most neobanks are 100% online, application and approval times tend to be much faster than bigger lending institutions, which have lengthier processes and more documentation required. This also means the funds can hit your bank account faster than traditional lenders.

  • Risk-based loans. While some bigger banks do offer risk-based loans, it's more common to find these products among non-bank lenders. This can help people with good or excellent credit histories get cheaper personal loans.

  • Less stringent lending criteria. Because they are able to offer personalised rates, many non-bank lenders are also able to offer loans to people with poorer credit scores. However, please note that these applicants will likely not qualify for low-rate loans.

  • Innovative features. Non-banks and neobanks tend to have modern and innovative features and tools such as sophisticated apps where you can monitor your funds, make repayments or utilise a redraw facility.

Banks

  • More product features. Because they have more capital, bigger banks may be able to offer more product features on their loans than smaller non-bank lending institutions.

  • Physical branches. If you're someone who prefers to do things face-to-face, a personal loan from a bank might work better for you.

  • Reputation. If you like to know exactly who you're borrowing money from, bigger banks are more well-established and have an easily researchable reputation.

  • Trust and customer loyalty. Borrowers may prefer to apply for a bank that they have been a member of for a long time.

  • Higher loan amounts. Again, because of their larger capital, banks may be able to offer larger loans to their customers.

How do I get a cheap personal loan

With bad credit?

If you have a bad credit score, it is likely you'll have to pay more for a personal loan than someone with good credit. Some lenders may even be unwilling to lend to you. This means that your loan will likely cost more and you may have fewer lenders to choose from.

That said, the information on how you can get a cheap personal loan still applies. Even if you have bad credit, it is important to compare loans and lenders. This may help you find one that's likely to give you the cheapest offer.

You may have to look specifically for bad credit personal loans and compare lenders and loans to find one with the lowest cost. "Cheap", as we've mentioned before, is relative.

Your best option may be to wait it out and work on improving your credit score. There are also other alternatives on the market, like payday loans. But these loans are expensive, with high fees and charges. This can make your debt worse rather than provide a financial solution.

With average credit?

If you have an average credit score, your rates are likely to be between that of someone with good credit and someone with bad credit. You may also find that traditional lenders, like banks, may be unwilling to lend to you.

This means that your loan is likely to be more expensive than if you have good credit. You may also have fewer lenders to choose from.

However, this does not mean that you shouldn't compare loans and lenders. Comparing loans will give you the best chance of securing a cheaper loan. You could also work on improving your credit score before applying.

As a pensioner?

Lenders view your income as an indicator of your ability to repay the loan.

This can mean your loan options may be limited compared to when you were employed. Most banks consider lending to pensioners, but you may not be able to borrow as much as when you were employed.

Lenders will look into your financial situation and your pension, as well as your savings and assets.

It also helps if you have an existing and good relationship with the lender.

There are also government assisted schemes you can apply for, as well as community financial assistance programs. Our guide on loans for pensioners covers the above.

Am I eligible for a personal loan?

The exact lending criteria will vary from lender to lender, so you will have to check with each lender. Generally, to be eligible for a personal loan, you'll need to meet the following criteria:

  • Age. You'll need to be over the age of 18 to borrow in Australia.
  • Citizenship. You'll need to be an Australian citizen or permanent resident.
  • Income. You'll need to earn a regular income. The lender will specify what their minimum income requirements are.

To get a personal loan, you'll need to prove your ability to manage the loan. You'll have to provide income, asset and employment information as part of the process.

Lenders will also look at your credit rating, bank statements, recent payslips and whether you have other debts.

If you want a secured personal loan, you'll have to provide details of what you intend to use as security. This secured asset will also have to meet certain eligibility criteria.

How can I apply for a cheap personal loan?

The first step is to find a cheap personal loan. You can use Finder's comparison tables to find a loan, and from there follow the secure link. This will lead you to the lender's online application form, where you can begin your application. The specific information you will need to provide may differ based on the lender, but will generally include personal, employment and financial details.

Picture: Getty Images

Personal Loan Offers

Important Information*
Logo for Harmoney Unsecured Personal Loan
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 5.35% p.a. and based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.

Logo for ANZ Fixed Rate Personal Loan
ANZ Fixed Rate Personal Loan

You'll receive a fixed rate of 8.99% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 years to 7 years loan terms available. This loan comes with no fees for extra repayments and no early exit fees.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 5.95% p.a. and 19.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.

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2 Responses

    Default Gravatar
    MatthewJune 18, 2018

    Hey I have a existing personal loan with Commonwealth back was 4000 an I consolidated to 10000 can I consolidate it again and what would be best loan for me to do that with low interest rates fixed price unsecured?..

      Avatarfinder Customer Care
      JoshuaJune 18, 2018Staff

      Hi Matthew,

      Thanks for getting in touch with Finder. I hope all is well with you. :)

      If you want to consolidate your personal loan, you may do so with other lenders. Here’s a list of debt consolidation loans in Australia.

      On that page, you will see a table that allows you to conveniently compare your options based on their interest rates. Once you find the right one for you, click on the “Go to site” green button to learn more or initiate your application.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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