Compare personal loan interest rates

Finder's picks for the best personal loans for October 2026:

• Best unsecured loan: OurMoneyMarket Unsecured Low-Rate Personal Loan ($20,000-$100,000)
• Best bank personal loan: ING Personal Loan
• Best variable loan: Latitude Variable Rate Unsecured Personal Loan
• Best secured loan: Latitude Variable Rate Secured Personal Loan

Best unsecured loan

Finder score 9.6 Excellent OurMoneyMarket Unsecured Low-Rate Personal Loan ($20,000-$100,000) ExclusiveFixed1 - 7 Years $20,000 - $100,000

Finder score 9.6 Excellent

Interest Rate (p.a.) 5.95% to 18.99%

Comp. Rate (p.a.) 5.95% to 21.78%

Application Fee $0 min.

Monthly Fee $0

Finder exclusive: Receive a $100 eGift Card if you have Excellent Credit (as determined by OMM’s credit assessment and scorecard), apply via Finder by 31 October 2026, and settle by 15 November 2026. For loans between $20,000 and $100,000 only. T&Cs apply.

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Why we like it With a competitive interest rate personalised to the borrower’s credit score, we also like this loan for not driving up the costs with ongoing fees. There are also no fees for extra repayments or for exiting your loan, even if you repay early. The application process is completely online and you can get a decision in minutes. Pros & cons Pros Competitive interest rates No ongoing fees No penalties for additional payments Cons Late payment fee of $35 Direct debit dishonour fee of $25

Best bank personal loan

Finder score 8.9 Great ING Personal Loan Most LovedFixed2 - 7 Years $5,000 - $60,000

Finder score 8.9 Great

Interest Rate (p.a.) 6.19% to 19.99%

Comp. Rate (p.a.) 7.03% to 20.78%

Application Fee $199

Monthly Fee $8

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Why we like it ING offers a competitive fixed interest rate, especially for borrowers with Excellent credit scores. It's a flexible loan, with terms from 2 to 7 years. It also lets you borrow up to $60,000. This loan does have an application fee and a monthly fee, which will add to your costs. ING was voted Most Loved personal loan provider at the 2025 Finder Customer Satisfaction Awards. Pros & cons Pros No penalties for additional payments Flexible repayment options Cons Late payment fee of $30 Once set, can't extend the loan term

Best variable loan

Finder score 7.5 Great Latitude Variable Rate Unsecured Personal Loan ExclusiveVariable2 - 7 Years $5,000 - $200,000

Finder score 7.5 Great

Interest Rate (p.a.) 9.99% to 29.39%

Comp. Rate (p.a.) 11.10% to 30.29%

Application Fee $0

Monthly Fee $16.50

Finder exclusive: $395 establishment fee waived for approved personal loan applications for a limited time. Latitude may withdraw the offer at any time. T&Cs apply.

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Why we like it This loan rewards customers with good credit scores by offering a tailored lower interest rate. Borrowers have the option securing their loan which can help to lower interest rates too. With a low minimum borrowing amount it's ideal for borrowers who might want small upgrades to their home or have need of emergency funds. The existing offer of a $0 establishment fee also keeps the loan costs down. Pros & cons Pros Tailored interest rate Low minimum borrowing amount Secured or unsecured Cons $16.50 monthly fee Fairly high minimum and maximum interest rates

Best secured loan

Finder score 7.9 Great Latitude Variable Rate Secured Personal Loan Variable2 - 7 Years $5,000 - $200,000

Finder score 7.9 Great

Interest Rate (p.a.) 8.99% to 28.39%

Comp. Rate (p.a.) 10.11% to 29.29%

Application Fee $0

Monthly Fee $16.50

$395 establishment fee waived for approved personal loan applications for a limited time. Latitude may withdraw the offer at any time. T&Cs apply.

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Why we like it The Latitude Variable Rate Secured Personal Loan has a few fees, but the variable interest rate is quite competitive, especially if you have an Excellent credit score. And you can apply online in just a few minutes. Pros & cons Pros Tailored interest rate Low minimum borrowing amount Secured or unsecured Cons $16.50 monthly fee Fairly high minimum and maximum interest rates

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How we calculate Personal Loans Finder Scores

Read full methodology

What different scores mean

9+

Excellent

The crème de la crème of personal loans. These products offer the lowest cost loans accompanied by the best features.

7+

Great

Slightly higher in cost and fewer features, but these products are still competitive.

5+

Standard

Typically offering above average rates and possibly lacking in the features department.

0+

Basic

The least competitive in terms of both cost and features.

What is a personal loan?

A personal loan is money that you borrow to cover the cost of expensive purchases such as a holiday, a car, a renovation, a wedding or medical bills. You repay the loan, plus interest and fees, over time.

Personal loan amounts can often be anywhere from a few hundred dollars up to $100,000. Typically, personal loans are used for larger expenses that can't easily be covered by your savings or other forms of borrowing like Buy Now Pay Later or a credit card, which are usually used for smaller costs.

The basic features of a personal loan are:

• Loan terms. Usually 1 to 7 years.
• Personalised interest rates. Many lenders determine your personal loan interest rate based on your credit score, income and other factors.
• Loan purpose. A personal loan can be used "for any worthwhile purpose". But you can't use a personal loan to gamble or invest.

How do I compare personal loans?

How your credit score affects your personal loan rate

Most lenders in Australia use risk-based pricing for personal loan interest rates. Every borrower gets a different rate based on their credit score and their own circumstances.

If you have an Excellent credit score you can get a lower interest rate. If your score is Good or Average the rate will be higher.

You can check your credit score for free through Finder before applying for a personal loan. If you have an Average or Bad credit score you can improve it before applying for credit.

So how do I know what my personal loan repayments will be?

Because your rate will be personalised it's best to get a quote from a lender once you are comfortable you fit its eligibility criteria. That quote should include the interest rate you are offered, as well as any fees.

When you have that information, use a personal loan calculator to be able to confidently tell what your repayments will be.

Personal loan rate update: October 2026

The latest figures from Equifax show a rise in demand for unsecured credit, in part due to the rate cuts this year. Applications for unsecured loans rose almost 15%, but BNPL applications saw a significant increase of over 30%.

According to Finder's database the average secured loan for October 2025 is 9.65%. That's higher than it was in September.

Unsecured personal loans have a higher average interest rate of 10.65%.

Lower rates than the average are still available however. The lowest unsecured personal loan rate is from Harmoney with a rate of 5.76% (comparison rate 6.55%). Wisr is holding the position of lowest secured interest rate this month. Its secured personal loan rate starts from 5.70%.

Finder's Consumer Sentiment Tracker (CST) shows us that the average personal loan size borrowed by Australians in August was $9,408, a number that keeps growing.

Market update by Rebecca Pike – Finder money senior writer

Compare personal loan types

Unsecured personal loans

Unsecured personal loans mean you're still responsible for repaying the loan, but you don't have to offer a car, property or asset as security for the loan. This usually means a slightly higher rate.

Secured personal loans

A personal loan secured by an asset, such as a car, term deposit or home equity. If you fail to repay the loan, the lender can take the asset. Secured loans often have lower rates and better terms since the risk to the lender is lower.

Car loans

While you could buy a car with a typical personal loan, rates are often better if you specifically take out a car loan. You can buy a car with a secured or unsecured loan, depending on the car you're buying. Banks and lenders offer car loans, and so do many car dealers.

Debt consolidation loans

These personal loans allow you to combine multiple outstanding loan and credit card debts into a single loan. This means fewer loan fees and hopefully a single, more manageable repayment with a lower interest rate.

Bad credit loans

If you have a bad credit score and a history of financial trouble you can still get a personal loan. Bad credit personal loans have higher rates, so be careful when taking one out as they are not long-term financial solutions.

Alternatives to personal loans

Personal loans are suited to borrowers looking to fund specific, one-off purchases or expenses, like a car, a wedding or a holiday. But there are other forms of credit that borrowers can use.

But remember that some of these options may be riskier and more expensive than a personal loan.

• Credit cards. A credit card lets you spend money flexibly, up to an approved limit, and pay it off over time. If you manage your card well, it can be a good form of credit. For smaller purchases it could be cheaper than a personal loan. But if you don't stay on top of your repayments, you'll end up paying a high interest rate month after month.
• Buy now pay later (BNPL). Many Australians use BNPL to cover small purchases in a similar way to a credit card. BNPL services are easy to use and don't charge interest, which can be a trap. You have to pay fees, and if you miss repayments then you'll get hit with more fees.
• Pay on demand. Pay-on-demand platforms let you access a portion of your salary before payday, but you'll pay a fee to do so. This might be a convenient short-term solution but if you find yourself repeatedly accessing your salary early and paying a fee to do so, you could find yourself falling further behind financially.
• Payday loans. These are short-term loans limited to $2,000. They are an emergency option but an expensive one. Payday lenders don't charge interest but instead charge hefty fees.

How to apply for a personal loan

1. Compare personal loan products. You can use our table to find one that suits your needs and has a low interest rate.
2. Check the lender's eligibility criteria. There's no point applying for a loan you can't get. Make sure you meet the employment, residency and income requirements.
3. Check your credit score and get a quote. Knowing your credit score helps set your expectations for what interest rate you'll be offered and helps you spot ways to improve your score. Lenders can also provide quotes to give you an idea of your loan.
4. Submit your application. You'll need some ID and details about your income, spending and employment.
5. Wait for approval. Most lenders can process a personal loan application within 1 business day. Some can do it in hours.

Documents you need for your personal loan application

• ID. A driver's licence, Medicare card, passport or birth certificate.
• Proof of income. Payslips, bank statements, a tax return or letter of employment.
• Other debts. You may need to provide an account statement from other debts you have, including loans or BNPL accounts.
• Security. If the loan is secured you'll need to provide some details about the car or asset offered as security. This can include a tax invoice from a car dealership and evidence of a car insurance policy.

"When I took a personal loan recently it was a smooth and quick experience. I was approved for the loan with the repayments I was happy with. One thing that helped me out was knowing early on what I can afford to pay on the loan."

Raj Lal

Publisher

FAQs about personal loans

• What is the average interest rate on a personal loan in Australia?

  The average interest rate for unsecured personal loans in Australia is 10.6% p.a (as of October 2025). This is the average rate taken from Finder's database, based on an individual with Excellent credit.

  Your own credit score, and therefore the rates you are offered, may differ.

• Which bank is best for a personal loan?

  There's no simple answer for which bank is best for your personal loan. Your credit score and relationship with the bank will impact the rate you are offered. Comparison tables can help you understand the full interest rate ranges banks offer. It's best to see which is offering the lowest rates, check to see if you match its eligibility criteria and then get a quote. It may also be worth looking at non-bank lenders, as they operate under the same regulation as banks and can have more competitive rates.

  For a quicker answer, Finder has done its own research into our top picks for the best personal loans.

• Should I get a personal loan from a bank or online?

  Whether you get a personal loan from a Big Four bank, a smaller lender or an online lender, you'll most likely be applying online anyway.

  Here are your main lender options:

  • Big Four banks. If you already bank with CommBank, Westpac, NAB or ANZ then it can be easier to get a personal loan approved. And you'll have all your accounts in one place. Keep in mind that the Big Four may have less competitive rates than online lenders.
  • Other banks and institutions. Smaller than the Big Four, banks like ING, Bendigo Bank, Bank of Queensland and many others offer personal loans. Then there are financial service companies like Latitude that specialise in personal lending.
  • Online lenders. There are many online lenders that offer personal loans with fast approval times and competitive interest rates. Examples include Humm, Harmoney, Now Finance and Wisr.
  • Credit unions. These member-owned organisations are similar to banks but are often more local and smaller. Credit unions offer personal loans that sometimes have quite competitive rates. Some offer online service while many have physical branches in certain towns and cities.

• How much can I borrow with a personal loan?

  Most unsecured loans offer amounts between $2,000 and $50,000, while secured loans offer up to $100,000. But the actual amount you can borrow depends on factors including your credit score and ability to make repayments.

• What is a good rate on a personal loan?

  A good unsecured personal loan interest rate is around 6–15% for people with an Excellent credit score. Personal loans use your credit score to determine the rate, with higher scores leading to lower rates. As a guide, Finder analysis shows most Australians have a Good or Very Good credit score.

• What credit score do I need for an Australian personal loan?

  An Australian credit score of 550 is generally the minimum you need to qualify for a personal loan. This will likely be an expensive loan, as most Australian lenders use risk-based pricing.

  Lower credit scores could qualify for payday or short term loans, though these will be more expensive than even a bad credit personal loan.

• How quickly can I get the money from my personal loan?

  It usually takes a few business days to get the money from a personal loan once your application is approved, but it does vary.

  Some banks are able to offer existing customers same-day personal loans.

  Some payday lenders also offer 1-hour turnarounds but these loans come with risks including higher interest rates and fees.

• How can I improve the chances of my loan being approved?

  There is no way to guarantee you're approved for a loan, but there are some key steps you can take before you apply:

  • Work out how much you can borrow. Lenders have criteria to decide how much you're eligible to borrow, but you also need to understand what is realistically affordable for you.
  • Maintain a good credit score or improve it. A lower credit score can reduce your chances of getting approved or mean you are offered a higher interest rate. If you already have a poor credit score, you can start improving it by limiting credit applications, paying bills on time and bringing down any limits on your credit card. It can take a while, but these are all good tactics to improve that credit score.
  • Keep track of your saving goals. If you manage to contribute to your savings regularly, it shows lenders that you are likely to manage ongoing loan repayments.

The lowdown on Finder Score

Wondering how we work out Finder Score? We look at 300+ personal loan products across 120+ lenders and we compare them against each other to get our simple score out of 10. Metrics like interest rates, fees and features are weighted and scaled to come up with individual Finder Scores. To give a fair and true personal loan comparison, unsecured and secured personal loan products are scored separately.

The Finder Score methodology is designed by our awesome insights team and reviewed by our just-as-awesome editorial team. Don't worry, commercial partners carry no weight and all products are reviewed objectively.

Finder Scores explained

• 9+ Excellent - The crème de la crème of personal loans. These products offer the lowest cost loans accompanied by the best features.
• 7+ Great - Slightly higher in cost and fewer features, but these products are still competitive.
• 5+ Satisfactory - Typically offering above average rates and possibly lacking in the features department.
• Less than 5 – Basic - The least competitive in terms of both cost and features.

Written by

Richard Whitten

Senior Money Editor

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Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 759 Finder guides across topics including:

• Home loans
• Credit cards
• Personal finance
• Money-saving tips