Best personal loans and lenders

You could take out a personal loan for a range of different reasons. While one person might need a personal loan to buy a car, another might take one out to renovate a home or consolidate debt. There are a large number of personal loans available, so how do you find the best one for you?

• *Disclaimer

  *The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

  1. No loans offered with repayment in full due in 60 days or less
  2. Interest rates range between 5.63% p.a. and 6.99% p.a.
  3. A representative example is expressed in the table above with all fees and charges payable in the Monthly Repayment column with the representative APR expressed in the comparison rate column.

  *The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

3 steps to help you find the best personal loan

What type of personal loan will best suit my needs?

Not sure what type of personal loan you need? Look at the information below to find the loan that may be suitable for your borrowing needs.

Loans designed for your loan purpose or borrowing situation

Debt consolidation
If you want to consolidate debt across your existing credit cards and/or personal loans, a personal loan might work for you.

Compare personal loans for debt consolidation

Large purchase or investment
If you want to make a large purchase, such as furniture, electronics or a holiday, or you need funds for an investment, an unsecured personal loan might suit your needs.

Compare unsecured personal loans

Home renovations or an ongoing project
If you need access to funds for an ongoing period or you aren't sure how much you need to borrow, you may want to consider a line of credit personal loan.

Compare line of credit personal loans

A new or used car
If you're purchasing a new or used car, you can benefit from a lower interest rate when you take out a secured car loan.

Compare secured car loans

You already have a vehicle to use as security
Secured personal loans let you benefit from lower interest rates when you attach an asset you already own as security. You can then use the funds however you need to.

Compare secured credit loans

You have bad credit or are on a lower income
Short-term lenders may consider you for a loan since some don't run a credit check, but keep in mind that the costs are much higher than with standard personal loans.

Compare short term loans

How to compare personal loans to find the best one for you

When you want to apply for a loan, you should first compare multiple personal loan offerings so you can track down the right product. Pay attention to the following features and you could enjoy considerable savings:

• Secured or unsecured?
  Both of these loans suit different purposes. If you're looking at buying something like a car or you already own an asset like a car, you can consider a secured personal loan. You will benefit from a lower interest rate personal loan by using the asset as security, but you risk losing it if you default on the loan. An unsecured personal loan may come with a slightly higher interest rate, but it doesn't require security and allows you to use the funds however you want.
• Fixed or variable?
  Both fixed and variable rate personal loans have pros and cons, depending on your preferences and circumstances. The interest of a fixed rate loan will not change for the life of the loan, so your repayments will never go up. Variable rate loans, on the other hand, can fluctuate, so your repayments could increase or decrease. Fixed rate loans have terms of up to five years and variable rate loans up to seven years. Variable rate loans also tend to be more flexible than fixed rate loans in terms of repayments.
• What is the interest and comparison rate?
  Compare interest rates against similar loans. While you should also check the fees you will be charged, the comparison rate will give you an idea of the true cost of the loan as it is comprised of both interest and fees.
• What fees are charged?
  Consider both upfront and ongoing fees. For example, upfront fees may include application or establishment fees and ongoing fees can include monthly or annual fees.
• How much can you borrow?
  The amount you can borrow should also factor into your decision. You will not find out how much you will be approved for before you apply, but lenders will have a set minimum and maximum borrowing amount. Ensure how much you want to borrow falls within these limits.
• What restrictions apply to the loan?
  Are there restrictions on additional repayments or repaying the loan early? Are there restrictions on how you can use the loan amount? Is the loan limited to borrowers with excellent credit? Find out what restrictions apply with the loan.
• What will the term of your loan be?
  Work out how much you can afford to repay and what repayment terms you will need. Then, make sure the loan you are applying for offers these terms.

• What's the best reason to give when applying for a personal loan and will using it improve my chances?

  There is no "best" reason for applying for a personal loan. The only reason that you can give for applying for a personal loan is the legitimate one that you want to use the loan for. Being honest on your loan application is essential. Lenders are thorough in their research and dishonesty in an application could see your application rejected.

What should I keep in mind when looking for the best personal loan?

While personal loans are helpful in many scenarios, it’s in your best interest to avoid certain traps and pitfalls.

• Read the fine print.
  Scrutinise all your options carefully right from the start and remember to look for ongoing account-keeping fees, early repayment fees and late payment fees. Read the terms and conditions document from start to finish and ensure you are aware of all fees and restrictions.
• Don't take on a loan you can't afford.
  When borrowing money, it is always important to use a personal loan calculator to find out what your repayments will be. If you can comfortably afford a loan, don't feel tempted to consider borrowing more in the event that you can't afford it.

How to submit your personal loan application

Before you apply for a personal loan, establish how much you want to borrow and your monthly repayment ability. You should find out how long it might take for you to pay the loan off completely, remembering that you can usually choose between making weekly, fortnightly or monthly payments.

Read through the eligibility criteria set by the lender and then ensure you meet them. Also make sure you have the required documents – usually your driver's licence, financial and employment documents and bank details – on hand. If you're applying for a secured loan you will need details of the asset.

Once you find a loan you wish to apply for in the table above, proceed to the lender’s website by clicking "Go to Site" and start the application process.

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