Find the most suitable personal loan for you and potentially save money through an interest rate comparison.
With so many personal loans out there, it can sometimes be difficult to sort through the options and find one that is right for you. One way to find a suitable personal loan is to compare the interest rates that lenders set. Aside from the loan itself, the interest is often the next biggest expense so it’s essential to find a loan with a competitive interest rate.
With interest rates, you can select between a fixed interest rate where the rate is locked, or a variable interest rate, which changes in accordance with market rate fluctuations. One way to ensure you are finding a competitive interest rate is to compare the comparison rate. The comparison rate reflects the true cost of a loan, but is capped at a certain amount so the comparison rate is actually different for every borrower. You can compare the comparison rates on offer to assist you in finding the best personal loan.
Latitude Unsecured Personal Loan Offer
Latitude Financial Services Personal Loan offers a low interest rate with a low ongoing fee and a rate of 13.99%.
- Interest Rate From: 13.99% p.a.
- Comparison Rate: 15.20% p.a.
- Interest Rate Type: Fixed
- Application Fee: $250 (Loans under $4000 - $140)
- Minimum Loan Term: 2 year
- Maximum Loan Term: 7 year
- Minimum Loan Amount: $3,000
- Maximum Loan Amount: $50,000
Compare personal loans
Use the table below to compare a range of personal loans. You can sort by interest rate or the comparison rate to aid in your comparisons.
Is it enough to compare only the interest rate?
Although it is crucial to compare interest rates as they play a vital role in paying off your personal loan, there are other aspects of a personal loan that you must consider and compare before making a decision.
You should always compare fees and charges associated with the personal loan. If the loan has a low interest rate but attracts high fees, the true cost of the loan will increase and can end up being more expensive. You should also compare how much flexibility the personal loan offers. For example, can you make additional repayments? Or can you make fortnightly repayments?
You will also need to compare the level of service the personal loan provides. How easy is it to make repayments? Can you contact them if you have any queries? Can you access information online? And finally, you should always compare the term of the loan. This is the length of the loan and tends to vary, so it’s important you figure out how long you need to repay the loan and compare accordingly.
What is the comparison rate and how do you calculate it?
As mentioned, the comparison rate reflects the true cost of the loan in a given situation. The comparison rate includes the interest rate and any fees and charges combined into one rate. These two aspects are what you are ultimately paying back and makes up the cost of your loan.
This comparison rate is based on the length of the loan, amount of the loan and the repayment frequency. One way to calculate the comparison rate of a personal loan is to use a comparison rate calculator. These calculators are found online and you can input the details of the personal loan you are interested in. The calculator will give you an indication of the comparison rate so you understand the true cost.
It’s important to find out the comparison rate and use this to compare your loan options before selecting a personal loan. Typically, the lower the comparison rate the better.
Factors to consider when comparing personal loans
- Interest rates.
As the interest repayment will make up the bulk of the loan, it’s important to compare. There’s many low rate loans available or you can select a personal loan with a higher rate and more features. The interest rate should be one of the first things you compare when selecting a personal loan. Typically, the lower the interest rate, the cheaper the loan will be for you over the loan term.
- Loan term.
The loan term is the length of the loan. With personal loans, the loan term tends to fall between one to seven years. You should first consider how much you are borrowing and your current financial situation and select a loan term that you are comfortable with.
Fees and charges can end up making a seemingly inexpensive personal loan more expensive. Make sure you know upfront all the fees and charges you may be liable for and compare personal loans based on this.
- Secured or unsecured.
You also need to consider whether you want a secured or unsecured loan. With secured loans, you typically use an asset of yours as security against the loan. With unsecured loans, you don’t have to use an asset of yours as security but they tend to have higher rates as you are seen as a higher risk.
Further Reading: Find out more about unsecured loans
Interest rates and comparison rates are crucial when comparing and selecting a personal loan as they help you understand the true cost of the loan. Start comparing rates today to help find the best personal loan for you.