{"visibility":"visibilityMasthead","ctaLabel":"Calculate","tableCode":"AUFPL_COMPARISON_V2_TABLE","nicheCode":"AUFPL","fields":[{"name":"LOAN_AMOUNT","value":"20000","options":"","label":"Loan amount","suffix":"$","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""},{"name":"PERIOD","value":"3","options":"","label":"Loan term","suffix":"years","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""}]}
Finder makes money from featured partners, but editorial opinions are our own.

Cheap personal loans

The cheapest personal loan for any borrower has a low interest rate and minimal fees. Compare banks and online lenders to find the cheapest deal with rates personalised to you.

{"visibility":"visibilityMasthead","ctaLabel":"Calculate","tableCode":"AUFPL_COMPARISON_V2_TABLE","nicheCode":"AUFPL","fields":[{"name":"LOAN_AMOUNT","value":"20000","options":"","label":"Loan amount","suffix":"$","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""},{"name":"PERIOD","value":"3","options":"","label":"Loan term","suffix":"years","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""}]}
1 - 11 of 194
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
OurMoneyMarket Personal Loan
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
NOW Finance No Fee Unsecured Personal Loan
Finder award winnerFixed18 Months - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
6.75%
to 26.95%
Comp. Rate (p.a.)
6.75%
to 26.95%
Application Fee
$0
Monthly Fee
$0
Monthly Repayment
$615.26
Go to siteMore Info
Harmoney Unsecured Personal Loan
Finder award winnerFixed3 - 7 Years $2,000 - $70,000
Interest Rate (p.a.)
5.76%
to 24.03%
Comp. Rate (p.a.)
6.55%
to 24.98%
Application Fee
$275 - $575
Monthly Fee
$0
Monthly Repayment
$623.70
Go to siteMore Info
Latitude Variable Rate Personal Loan
Variable2 - 7 Years $5,000 - $70,000
Interest Rate (p.a.)
9.49%
to 29.99%
Comp. Rate (p.a.)
10.37%
to 30.69%
Application Fee
$0
Monthly Fee
$13
Monthly Repayment
$653.57
Go to siteMore Info
Special Finder offer: $395 establishment fee waived for approved personal loan applications submitted through Finder. Latitude may withdraw offer at any time. T&Cs apply.
OurMoneyMarket Secured Personal Loan
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
ING Personal Loan
Finder award winnerFixed2 - 7 Years $5,000 - $60,000
Interest Rate (p.a.)
6.89%
to 18.99%
Comp. Rate (p.a.)
7.10%
to 19.23%
Application Fee
$150
Monthly Fee
$0
Monthly Repayment
$621.16
Go to siteMore Info
Pepper Money No Fee Unsecured Personal Loan
Finder award winnerFixed18 Months - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
6.75%
to 26.95%
Comp. Rate (p.a.)
6.75%
to 26.95%
Application Fee
$0
Monthly Fee
$0
Monthly Repayment
$615.26
Go to siteMore Info
Citi Personal Loan Plus
Variable3 - 5 Years $2,000 - $55,000
Interest Rate (p.a.)
10.90%
Comp. Rate (p.a.)
11.19%
Application Fee
$199
Monthly Fee
$10
Monthly Repayment
$670.33
Go to siteMore Info
Special Offer: Monthly Fee of $10 waived for applications submitted before 30 June 2024.
NAB Personal Loan Unsecured Fixed
Fixed1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
6.99%
to 20.49%
Comp. Rate (p.a.)
7.91%
to 21.33%
Application Fee
$150
Monthly Fee
$10
Monthly Repayment
$632.08
Go to siteMore Info
NAB Personal Loan Unsecured Variable Rate
Variable1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
6.99%
to 20.49%
Comp. Rate (p.a.)
7.91%
to 21.33%
Application Fee
$150
Monthly Fee
$10
Monthly Repayment
$632.08
Go to siteMore Info
Jacaranda Finance Express Personal Loan
Fixed2 - 4 Years $5,000 - $25,000
Interest Rate (p.a.)
14.95%
to 27.95%
Comp. Rate (p.a.)
29.30%
to 42.80%
Application Fee
$475 - $990
Monthly Fee
$24
Monthly Repayment
$751.11
Go to siteMore Info
loading
Showing 11 of 11 results

What a cheap personal loan really looks like

For most borrowers, the interest rate is the most important part of a personal loan. A high interest rate makes the loan expensive. A lower rate makes it cheaper.

But if you just look at the rate you could end up getting ripped off. Some personal loans come with hefty fees that end up costing you more compared to a low-fee loan with a higher rate.

Other factors like the length of the loan, the loan type and the ability to make extra repayments also change how cheap or expensive your personal loan ends up being.

How to make sure you loan is cheap in 2 quick steps

  1. Compare a wide range of personal loans from different lenders first.
  2. Use a repayment calculator and add together the cost of fees.

Looking for a personal loan that combines a low rate with minimal fees? Check out Finder's top personal loan picks for April 2024.

How a lower interest rate makes your loan cheaper

Your personal loan's interest rate determines how much interest is charged on your repayments. Here are 3 otherwise identical loans with different interest rates.

Loan 1Loan 2Loan 3
Loan amount$10,000$10,000$10,000
Loan term3 years3 years3 years
Interest rate (p.a.)9.00%19.00%25.00%
Monthly repayments$318$342$367
Total loan cost$11,448$12,304$13,197

In these examples the lowest rate loan works out to be $1,607 cheaper than the highest rate one.

How do I get a lower interest rate?

The lowest personal loan rates go to borrowers who have excellent credit scores. You'll also need to have a steady income and meet all the borrowing requirements.

If you have an average credit score you won't be able to get a 9.00% rate no matter how hard you look.

But every borrower can still find a lower rate, whether their credit is excellent or not. The main thing is to compare rates from many lenders and make sure you're getting a good deal.

How fees can make your cheap personal loan expensive

Some lenders charge a monthly fee just for keeping the loan account open. And there's often an application or upfront fee that can cost hundreds of dollars.

Some lenders charge a percentage of your loan amount as a fee.

Here's an example:

  • Your lender charges an application fee that's 1.5% of your loan amount.
  • You borrow $10,000.
  • Your application fee is $150.

When personal loan fees make your cheap loan more expensive

Here are 2 personal loans with the same loan term and loan amount. Loan 1 has a lower rate but a $20 monthly fee. Loan 2 has a slightly higher rate but no monthly fee.

Which is cheaper?

Loan 1Loan 2
Loan amount$15,000$15,000
Loan term5 years5 years
Interest rate16.00%17.00%
Monthly fee$20$0
Monthly repayments$385$373
Total loan cost$23,087$22,368

The higher rate loan ends up being $719 cheaper over 5 years. All because of that little monthly fee.

    • Note: Comparison rates

Loans have a comparison rate listed alongside the interest rate. This figure is designed to show you the actual cost of a loan taking into account the interest rate and the loan fees.

How the length of your loan affects the true cost

Most personal loans have terms between 1 and 7 years. And the length of the loan really affects how cheap the loan is in 2 ways:

  • A shorter loan term = less interest charged, but higher monthly repayments.
  • A longer loan term = more interest charged over time, but cheaper monthly repayments.

A shorter loan term is technically a cheaper loan overall because you pay much less interest. But for many borrowers the cheaper loan is the one where the monthly repayments aren't crushingly high.

Every borrower has to find the right balance between the monthly repayment size and the overall life of the loan.

Here are 3 examples, using identical rates and loan amounts but different terms:

Loan 1Loan 2Loan 3
Loan amount$8,000$8,000$8,000
Loan term3 years5 years7 years
Interest rate16.00%16.00%16.00%
Monthly repayments$282$195$159
Total loan cost$10,126$11,673$13,348

Loan 3 has by far the cheapest monthly repayments. But by taking 7 years to repay the loan you pay more than $5,000 in interest. Whereas loan 1's 3-year term means you pay just over $2,000 in interest.

4 tips to find the cheapest personal loan

  1. Improve your credit score. A better credit score means you can get a lower interest rate from many lenders who use risk-based pricing. Check out all the ways you can improve your credit score.
  2. Compare widely. Check out personal loans from big banks, small banks and online lenders to make sure you're getting a loan that's genuinely cheaper than the average.
  3. Use a guarantor. If you have bad credit or are struggling to get a loan approved, having someone support your application can help you get approved and get a cheaper loan. The catch? If you can't repay the loan your guarantor is on the hook for it.
  4. Find the right type of personal loan. There are different personal loan types that suit different borrowers, and some are cheaper than others. A secured loan will have a lower rate than an unsecured loan from the same lender, for example. A car loan with balloon payments might look very cheap at first but the final payment could make it very expensive.

Understanding different personal loan types

  • Secured car loans. Secured car loans are some of the cheapest personal loans but you'll need to be buying a new (or reasonably new) car and have good credit. Rates may go as low as 5% p.a. or as high as 29.99% p.a.
  • Secured personal loans. Rates for secured loans can range from 5% p.a. to 29.99% 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 29.99% p.a. depending on the lender.

How to make your repayments cheaper

Once you've found a suitable personal loan you do have a few ways to make the repayments cheaper regardless of how high or low the interest rate is.

Adjust the loan term

The length of the loan affects how cheap it is month-to-month and overall in terms of the interest costs. Play around with the loan term until you find the right balance.

Make extra repayments

Most personal loans let you make extra repayments. Putting aside even just a little extra each month to pay the loan down reduces the interest you get charged.

Just check that your lender doesn't charge a fee for making extra repayments.

Borrow less

It sounds obvious but a smaller loan size works out cheaper than a larger one. If you're able to reduce your borrowing amount you can end up saving yourself from money.

Why compare personal loans with Finder?

free

We're free

Our personal loan comparison is completely free to use. There are no costs at all for you to use our database to find a better deal. Better still, we regularly run exclusive deals that you won't find on any other site.
expert advice

We're experts

We've researched and reviewed hundreds of loans as part of our Finder Awards. Our database and tables are always up-to-date and our in-house experts regularly appear on Sunrise, 7News and SBS News.
independent

We're independent

We are independently owned and have a mission to help Australians make better financial decisions. That means our opinions are our own and you can compare nearly every personal loan in Australia (and find a better deal).
help

We're here to help

Since 2014, we've helped 300,000+ people find a personal loan by explaining your options simply. You don't need to give us any details to use our comparison. We're here to help you make a decision.

FAQs

More guides on Finder

  • Finder Personal and Car Loan Awards 2024

    Check out the Finder Personal and Car Loan Awards winners and finalists for 2024.

  • Laptop loans and finance options

    Find out everything you need to know about getting a loan for your laptop purchase, including what's available, if you're eligible and how to compare.

  • Loan and finance options for weight loss surgery in Australia

    Planning on getting weight loss surgery? Learn your options and compare medical loans today.

  • Wisr Personal Loan

    Wisr’s Personal Loan comes with fixed personalised interest rates.

  • How much can I borrow with a personal loan?

    Personal loans offer a range of loan amounts to suit different purposes and budgets. Here's how to get the loan amount you need.

  • Engagement Ring Finance

    If you're considering an engagement ring loan, find out your options here and get the perfect ring for your spouse-to-be.

  • Apprentice loans

    If you're thinking about getting an apprentice loan, explore the possibility of government-sponsored loans as well as loans offered by banks. Find out everything you need to know to compare your options.

  • Swimming Pool Finance

    Swimming pools are a great way to spend your summer while increasing the value of your property. If you're looking to invest in a swimming pool, find out about your personal loan options here.

  • Same Day Personal Loans

    We’ve written about how you can get a same day personal loan and how to speed up the process.

  • A guide to interest rates

    Compare your options and know what to look for with the highest or lowest interest rate.

Ask a Question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

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
      JoshuaJune 18, 2018Finder

      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

Go to site