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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*.

Alex Personal Loan

Alex Personal Loan

From

5.49 % p.a.

fixed rate

From

5.49 % p.a.

comparison rate

Rate dependent on risk profile

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Must read: Looking for the cheapest personal loan?

There is no single cheap personal loan that suits every borrower. While the lowest interest rate makes your loan cheaper there are so many other factors you need to look at including fees and future rate changes. Keep in mind that we don't compare every product in the market, but we hope that our tools and information will allow you to compare your options and find the cheapest personal loan for you.

Cheap personal loans comparison

Data updated regularly
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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
Alex Personal Loan

From 5.49% (fixed)
5.49%
$2,100
6 months to 5 years
$0 (Waived $295 establishment fee)
$0
You'll receive a fixed interest rate from 5.49% 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 3 May 2021
Harmoney Unsecured Personal Loan

From 6.99% (fixed)
7.79%
$2,000
3 to 5 years
$575 ($275 for loans of below $5,000)
$0
You'll receive a fixed rate between 6.99% p.a. and 24.79% 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 variable rate of 8.90% p.a. with a comparison rate of 9.18% p.a.
A credit limit up to $40,000 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.
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
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
OurMoneyMarket Personal Loan

From 5.35% (fixed)
6.31%
$2,001
1 to 7 years
1.5–6% of your total loan amount
$0
You'll receive a fixed rate from 5.35% 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 April 30th to secure a discounted rate of 5.35% p.a. (comparison rate: 6.31% p.a.) for the first 12 months.
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: Get a free $200 Westfield e-gift card once your loan application has settled. Offer ends on 30 April 2021. T&Cs apply.
Plenti Personal Loan

From 6.39% (fixed)
6.39%
$2,001
3 to 7 years
$0 to $999
$0
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 $2,001 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.
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 personalised interest rate from 5.75% p.a. to 25.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
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.
SocietyOne Unsecured Personal Loan (2-3 years)

From 6.39% (fixed)
6.39%
$5,000
2 to 3 years
from 0% to 5% of the loan amount
$0
You'll receive a fixed rate between 6.39% p.a. and 17.49% 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.
SocietyOne Unsecured Personal Loan (5 years)

From 6.39% (fixed)
6.39%
$5,000
5 years
from 0% to 5% of the loan amount
$0
You'll receive a fixed rate between 6.39% 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.
Wisr Personal Loan

From 6.49% (fixed)
6.76%
$5,000
3 to 5 years
$595
$0
You'll receive a fixed rate between 6.49% p.a. and 19.95% 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.
MoneyMe Personal Loans

From 6.25% (fixed)
7.64%
$2,100
1 to 5 years
from $295 to $495
$10
You'll receive an interest rate between 6.25% p.a. and 19.95% p.a. based on your risk profile
Borrow up to $50,000 with no hidden fees or costs. Application process usually takes 5 minutes to complete and is done fully online.
CUA Unsecured Fixed Rate Personal Loan
9.39% (fixed)
9.64%
$5,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 9.39% p.a.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
Pepper Money No Fee Personal Loan

From 5.95% (fixed)
5.95%
$5,000
18 months to 7 years
$0
$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 $50,000 and use for a range of purposes. Pay no upfront, early repayment or ongoing fees.
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If you're in the market for a personal loan, it is always important to consider the true cost of the loan. In this guide, we explain what makes a loan competitive, the cost of different loan types and what else to consider before you apply.

What makes a personal loan “cheap”?

This is relative to the type of loan you need since interest rates can vary a lot between different types of loans. For example, a secured car loan will generally have lower rates than an unsecured personal loan.

Knowing what else to look for in a cheap personal loan is important since the actual cost of a loan is determined by more than just the interest rate. Before applying for a personal loan, you should always consider the following:

  • Upfront and ongoing fees. These fees will be added on to your principal loan amount and will therefore affect both the size of your repayments and the interest you have to pay.
  • Additional charges. These may apply depending on the terms of the loan.
  • The comparison rate. This rate factors in fees and charges, along with the interest rate, to show the true cost of the loan.

What are the pros and cons of a cheap loan?

Pros
  • Pay for personal expenses that you otherwise would not have been able to afford
  • Generally lower cost than using a credit card
  • Lower cost than other forms of personal loan
Cons
  • You're entering into a medium- to long-term debt agreement
  • "Cheap" is relative, and some "cheap" loans may still work out as being expensive for your circumstances
  • Cheaper loans may have less additional features and flexibility than higher cost loans

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:

Is it cheaper to pay off your personal 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 payment for doing so, which may cancel out any savings that you could make.

If you want the choice to 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 sort of circumstances and may be able to negotiate a payment plan with you that is more manageable.

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.

How “cheap” are the different types of loans?

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 17% p.a.
  • 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 the 12% p.a. mark.

What can I use a personal loan for?

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.

Other features to consider besides the cost of the loan

Besides the interest rate, comparison rate and establishment fees, consider the following before applying for a loan:

  • Loan amount. Check whether the minimum and maximum borrowing amounts will meet your needs.
  • Type of interest rate. Your personal loan may have either a fixed interest rate or variable interest rate, and both come with different benefits and drawbacks.
  • 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 of up to 5 years, while others offer 7-10 years.

Are you eligible for a personal loan?

Different lenders have different criteria to determine a customer's eligibility for a loan. Generally, to be eligible for a personal loan, you will need to meet the following criteria:

  • Be over the age of 18
  • Be an Australian citizen or permanent resident
  • Earn a regular income

You will also need to prove your ability to manage the loan by providing income, asset and employment information.

This means during the loan application process lenders can look at things like your credit rating, bank statements and recent payslips.

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

How to apply for a cheap personal loan

After you've found a cheap personal loan using one of the finder.com.au comparison tables, you can follow the secure link to the lender's online application form and begin your application. The specific information you will need to provide may differ between lenders, but will generally include the following:

  • Personal details, including your name, contact details and proof of identity
  • Details of your employment, including income and type of employment
  • Your employer's name and contact details
  • Financial details, including your assets and debts

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Personal Loan Offers

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

You'll receive a fixed rate between 6.99% p.a. and 24.79% 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.

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

You'll receive a fixed rate of 10.5% 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
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 20.49% 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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