Want access to credit without overspending on rates and fees? Find out what cheap personal loans are available.
If you're in the market for a personal loan, one of the most important features to factor into your search is how competitive the loan is. In this guide we take you through what to look for when it comes to cheap personal loans and what to consider before you apply.
- Loan amounts from $5,000
- Offers a reusable credit facility
- Repay over 5 years
100% confidential application
Citi Personal Loan Plus
Apply for a Citi Personal Loan Plus and get competitive interest rate offer with a reusable credit facility.
- Interest rate from: 11.99% p.a.
- Comparison rate: 12.77% p.a.
- Interest rate type: Variable
- Application fee: $199
- Minimum loan amount: $5,000
- Maximum loan amount: $75,000
Compare cheap personal loans
How cheap is a "cheap" personal loan?
This depends on the type of loan you are looking to apply for. For example, a secured car loan will have lower rates than an unsecured personal loan. Here is a rate guide for each loan type:
- Secured car loans. Rates can go as low as 4% p.a. or as high as 14% p.a. If you are a high-risk borrower, for example, if you have bad credit, the maximum a lender can charge is 48% p.a.
- Unsecured personal loans. Rates for unsecured personal loans vary between 8% p.a. to 17% p.a.
- Peer-to-peer loans. Interest rates on peer-to-peer (P2P) loans vary depending on your credit score. Good credit scores can get rates as low as 3%, but if you have a low credit score your rate may be around the 12% p.a. range.
How to find out if a personal loan is competitive?
You need to compare more than the interest rate to make sure a loan is competitive. Look at:
- Upfront and ongoing fees. These fees will be added onto your principal loan amount and will therefore affect your repayments and the interest you have to pay.
- The comparison rate. This rate incorporates the fees as well as the interest rate to show you the true cost of the loan.
What else should you consider besides the cost of the loan?
Besides the interest rate, comparison rates and fees, consider the following:
- Repayment flexibility. Check whether you will be able to make additional repayments or pay off the entire loan amount early without penalty.
- Loan terms. Some lenders offer shorter loan terms up to five years while others offer seven to ten years.
- Type of interest rate. Your loan can either be fixed or variable, and both of these rates will come with different features.
- Loan amount. Check what minimum and maximum borrowing amounts are and if they meet your needs.
Are you eligible for a personal loan?
Lenders have different criteria to determine your eligibility for loans. Generally, to be eligible for a personal loan you will need to be over the age of 18, be an Australian citizen or permanent resident and be earning a regular income. You will then need to prove your ability to manage the loan by providing income, asset and employment information. Secured personal loans will also require details of what you're using as security, and this secured asset will also need to meet certain eligibility criteria.
How to apply for a cheap personal loan
After you've found a personal loan using one of the finder.com.au comparison tables, such as the ones on this page, then you can follow the secure link to the lender's online application form. The specific information you will be required to submit will differ between lenders, but it will usually be something along the lines of this:
- Personal details including your name, contact details and proof of your identity
- Details of your employment including your income and type of employment
- Your employer's name and contact details
- Financial details including your assets and debts