Low interest personal loans

Like saving money? For a $25,000 loan paid over 5 years a 3% difference in interest rate can save you $2199

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Promoted
4.99
%
p.a.
interest rate
4.99
%
p.a.
comparison rate
You'll receive a fixed interest rate from 4.99% 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 November 2021.
Promoted
6.39
%
p.a.
interest rate
6.39
%
p.a.
comparison rate
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 $5,000 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.
Promoted
5.45
%
p.a.
interest rate
6.07
%
p.a.
comparison rate
You'll receive a fixed rate from 5.45% 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 September 30th 2021 to secure a discounted rate of 5.45% p.a. (comparison rate: 6.07% p.a.) for the first 12 months on loans over $35,000. T&Cs apply.
A low interest rate personal loan generally has an interest rate from 4-6% p.a. Low interest does not always mean a cheaper loan. You should check for the comparison rate as well as any extra fees when choosing a loan. These fees could cancel any savings you get from a low interest rate.
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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 Bank Personal Loan

From 4.99% (fixed)
4.99%
$2,100
6 months to 5 years
$0 (Waived $295 establishment fee)
$0
You'll receive a fixed interest rate from 4.99% 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 November 2021.
Plenti Personal Loan

From 6.39% (fixed)
6.39%
$5,000
3 to 7 years
$0 to $999
$35
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 $5,000 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.
OurMoneyMarket Personal Loan

From 5.45% (fixed)
6.07%
$2,001
1 to 7 years
From $250
$0
You'll receive a fixed rate from 5.45% 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 September 30th 2021 to secure a discounted rate of 5.45% p.a. (comparison rate: 6.07% p.a.) for the first 12 months on loans over $35,000. T&Cs apply.
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: Apply and settle a NOW Finance debt consolidation loan via Finder by 30 September 2021 for your chance to win $2000 paid off your debt. T&Cs apply.
Harmoney Unsecured Personal Loan

From 5.35% (fixed)
6.14%
$2,000
3 to 5 years
$575 ($275 for loans of below $5,000)
$0
You'll receive a fixed rate between 5.35% p.a. and 19.09% 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. if you're approved.
A credit limit up to $75,000 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. The interest rate doesn’t change based on your risk profile, so you know your rate before you apply.
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
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
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 variable rate from 5.75% p.a. to 25.99% p.a.

Borrow up to $50,000 and earn 1 Qantas Point for every $1 borrowed.

⭐Special Offer: Earn up to 50,000 Qantas Points with a personal loan from Symple.
Wisr Personal Loan ($5,000 to $30,000)

From 6.49% (fixed)
6.49%
$5,000
3 to 7 years
$0 - Waived Establishment Fee
$0
You'll receive a fixed rate between 6.49% p.a. and 20.95% 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.

⭐Special Offer:The $595 establishment will be waived for unsecured personal loans between $5,000 and $30,000. Offer ends 30 September 2021. T&Cs apply.
Wisr  Personal Loan ($30,001 to $64,000)

From 6.49% (fixed)
7.11%
$30,001
3 to 7 years
$595
$0
You'll receive a fixed rate between 6.49% p.a. and 20.95% p.a. based on your risk profile
A loan from $30,001 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.
ANZ Fixed Rate Personal Loan
8.99% (fixed)
9.88%
$5,000
1 to 7 years
$150
$10
You'll receive a guaranteed rate of 8.99% p.a. with a comparison rate of 9.88% p.a. if you're approved.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

⭐Special Offer: Secure a reduced interest rate of 8.99% p.a. for a limited time only. Apply for up to $50,000 to use for a variety of purposes without needing to add security.
SocietyOne Unsecured Personal Loan

From 5.95% (fixed)
5.95%
$5,000
2 to 5 years
from $0 to $595
$0
You'll receive a fixed rate between 5.95% 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.
Great Southern Bank Unsecured Fixed Rate Personal Loan
9.39% (fixed)
9.64%
$5,000
1 to 7 years
$175
$0
You'll receive a guaranteed rate of 9.39% p.a. with a comparison rate of 9.64% p.a. if you're approved.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
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.
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.
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What types of personal loans have the lowest rates?

There are a couple of types of loans you can look at if you want one with a low interest rate. These include the following:

  • Secured personal loan. If you have an asset to offer as a guarantee you can get a lower rate with a secured personal loan. Car loans are a common example of a secured personal loan. The security mitigates the risk for the lender, so they're able to offer you a lower cost, and you're still able to use the funds for the purpose you need.
  • Risk-based personal loan. Many lenders are now offering risk-based personal loans. This means the interest rate is personalised to you. So, if you have a good borrowing history and a high credit score (you can check your credit score for free here), then you may be able to get a low interest rate.
  • A competitive unsecured personal loan. Due to a significant rise in neobank and non-bank personal loan lenders, there are more competitive unsecured personal loans available on the market. If you compare your options, which you can do using the table on this page, you'll be able to find a low interest rate.

Lowest unsecured fixed rate productInterest rateComp. rateMore info
Australian Military Bank Fixed Rate Personal LoanFrom 5.85% p.a.From 6.70% p.a.
More Info
Citi Ready Credit (3 Years Balance Transfer)3.99% p.a.-
More Info
Community First Credit Union Green LoanFrom 3.99% p.a.From 4.99% p.a.
MoneyMe Personal LoansFrom 6.25% p.a.From 7.64% p.a.
Plenti Fixed Rate Personal LoanFrom 6.39% p.a.From 6.39% p.a.
MoneyPlace Unsecured Personal LoanFrom 6.45% p.a.From 6.45% p.a.
More Info
Handypay Personal LoanFrom 6.75% p.a.From 6.96% p.a.
Alex Personal LoanFrom 4.99% p.a.From 4.99% p.a.
NOW Finance No Fee Unsecured Personal LoanFrom 5.95% p.a.From 5.95% p.a.
Pepper Money No Fee Personal LoanFrom 5.95% p.a.From 5.95% p.a.
More Info
Lowest unsecured variable rate productInterest rateComp. rateMore info
Australian Military Bank Green Loan4.15% p.a.5.09% p.a.
More Info
Australian Military Bank Variable Rate Personal LoanFrom 5.85% p.a.From 6.70% p.a.
More Info
Symple Loans Personal LoanFrom 5.75% p.a.From 6.47% p.a.
Community First Credit Union Home Improvement LoanFrom 3.99% p.a.From 4.99% p.a.
More Info
Plenti Variable Rate Personal LoanFrom 6.39% p.a.From 6.39% p.a.
Maleny CU Solar LoanFrom 6.95% p.a.From 6.95% p.a.
Bank Australia Personal Loan Property Owner7.89% p.a.8.92% p.a.
More Info
Endeavour Mutual Bank Unsecured Personal LoanFrom 7.99% p.a.From 8.20% p.a.
More Info
Sydney Mutual Bank Unsecured Personal LoanFrom 7.99% p.a.From 8.20% p.a.
More Info
Laboratories CU Home Renovation LoanFrom 8.60% p.a.From 8.63% p.a.
Lowest secured fixed rate productInterest rateComp. rateMore info
RAA Member Secured LoanFrom 5.45% p.a.From 5.80% p.a.
ILLAWARRA Credit Union Secured Fixed Rate Personal LoanFrom 5.64% p.a.From 5.92% p.a.
RAC Finance Any Worthwhile Purpose LoanFrom 5.70% p.a.From 6.11% p.a.
NOW Finance Secured Personal LoansFrom 4.45% p.a.From 4.45% p.a.
More Info
Latitude Personal Loan (Secured)From 5.99% p.a.From 7.26% p.a.
IMB Secured Personal Loan5.98% p.a.6.33% p.a.
More Info
RAA Non-Member Secured LoanFrom 6.45% p.a.From 6.94% p.a.
Beyond Bank Low Rate Personal LoanFrom 6.49% p.a.From 7.18% p.a.
Greater Bank Secured Personal LoanFrom 5.99% p.a.From 6.37% p.a.
More Info
RACV Personal LoanFrom 6.49% p.a.From 7.19% p.a.
More Info
Lowest secured variable rate productInterest rateComp. rateMore info
Endeavour Mutual Bank Term Deposit Secured LoanFrom 4.45% p.a.From 4.65% p.a.
Coastline CU Personal Loan - Secured with Fixed Term DepositFrom 4.61% p.a.From 5.96% p.a.
Coastline CU Personal Loan - Secured with Property MortgageFrom 4.61% p.a.From 11.42% p.a.
QBank Mortgage Secured OverdraftFrom 4.64% p.a.-
First Option Bank Cash Secured LoanFrom 4.99% p.a.From 5.23% p.a.
More Info
Goulburn Murray CU Secured Personal LoanFrom 5.25% p.a.From 6.42% p.a.
Bank of us Secured Personal Loan (SECURED BY RESIDENTIAL REAL ESTATE)From 5.31% p.a.From 5.59% p.a.
First Option Bank Mortgage Secured OverdraftFrom 5.49% p.a.-
Family First CU Mortgage Secured Overdraft (minimum $5,000)From 5.60% p.a.-
Family First CU Secured Overdraft (minimum $5,000)From 5.60% p.a.-

*Our lowest variable and fixed rate personal loans round-up is a monthly analysis of the lowest interest rate personal loans in Finder's database. The rates and other information in this page are correct at the time of publication and are subject to change. There may be lower rates on the market than the ones listed here.
Interest rate guide

What is a low interest personal loan?

Personal loans come in two forms: secured and unsecured loans.

A secured loan is when you use an asset as security or collateral. This can be your car or home equity.

An unsecured loan is money you borrow without having to use an asset as security.

Of the two, a secured loan is always cheaper as the security reduces the lender's risk of lending. This incentivises them to give you a lower interest rate. In case you are unable to pay your loan, the security will be repossessed by the lender to pay for the cost of the loan.

This is not the case with an unsecured loan. As there is no security, lenders usually charge a higher rate of interest to offset their risk.

Both secured and unsecured personal loans offer a choice between fixed and variable interest rates. A fixed rate loan is when the interest rate remains the same, or fixed, from the start to the end of your loan term. A variable rate loan is when the interest rate can either rise or fall on a monthly basis. This fluctuation is based on the interest rate set by the Reserve Bank of Australia (RBA) eleven times a year. Lenders can change their interest rate to reflect this. This means that when the rates fall, your repayments reduce, and vice versa.

The type of loan you can apply for depends on your personal circumstances, such as having an asset to offer as security. It could also depend on your credit score, income, willingness to risk the asset and type of employment.

You may have noticed that some lenders offer lower interest rates than others. These loans are more competitively priced than others on the market. There are several reasons for this. One of them is the increase in non-bank lenders. These lenders generally offer lower interest rates because they don't have large overheads. They are able to pass these savings on to their customers by offering lower rates. As there is more competition, traditional lenders are also motivated to offer lower interest rates.

However, a low interest rate does not mean zero interest. You will still have to pay interest on your loan, just at a lower rate. This could mean that your overall repayments could be lower and you could save money in the long run.

What kind of personal loans have the lowest rates?

There are certain types of loans you can look at if you want a low interest rate. These include the following:

  • Secured personal loans. If you have an asset to offer as security, you can get a lower interest rate on your secured personal loan. Car loans are a common example of a secured personal loan. The lender is able to offer a loan with lower interest as their risk is offset by the security.
  • Risk-based personal loan. Many lenders now offer risk-based personal loans. These loans feature a personalised rate of interest. Your rate is set based on your creditworthiness. This means that if you have a good borrowing history, you may be able to get a low interest rate on your loan. You can check your credit score for free on Finder.
  • A competitive unsecured personal loan. There are more competitive unsecured personal loans available on the market these days. This is because of the influx of neobanks and non-bank lenders. These lenders generally have lower overheads and so can offer loans with competitive rates.

Comparing can help you find a loan with a low interest rate.

How much can I borrow with a low interest personal loan?

Traditional personal loans are available from $2,001 up to $100,000. The amount you qualify for will depend on a number of factors. These include the following:

  • Income. How much you earn determines how much you can borrow. The lender will check if you can afford the loan based on your salary.
  • Security. You may qualify for a bigger loan if you offer an asset as collateral. Your asset can be equal to or greater than the value you wish to borrow. Depending on the lender and security you offer, you could even get a loan up to $2,000,000.
  • Credit score. If you have a good or excellent credit score, you're more likely to qualify for a higher loan amount. If you have defaults on your record, the lender may see you as a risky borrower and limit your borrowing.
  • Joint application. If you are making a joint application, your partner's salary and credit score will also be taken into account. You could qualify for a larger loan as a result.

What can I buy with a low-interest personal loan?

What you can buy with a low-interest personal loan will largely depend on the type of loan that you go for. However, there are loans available for nearly every legitimate purpose, so it's just a question of finding the right loan for what you want to buy.

What makes a good low interest loan?

A competitive rate is generally anything less than 6% per annum.

Apart from the interest rate itself, there are other features that make some low interest loans better than others. Check if your loan has the following:

  • Short loan terms. Opting for a longer term could prove to be more expensive in the long run. If your loan is affordable with a shorter term, you could pay it off faster and save money.
  • No or low exit fees. Some loans allow you to pay it off early for free, while others may have a charge. This exit fee could be expensive in some cases. Some loans do not have this facility at all. This means that you won't be able to pay off your loan early even if you can.
  • Extra repayments. Some loans may allow you to make extra repayments. This can help shorten the lifespan of your loan and help you pay it off faster. Some loans may have a cap on how many extra repayment you can make in a year. Some may not allow it at all.
  • Extra features. This can include online account management and redraw facilities. Free features are best as the cost can add up.

What can I use a low interest personal loan for?

There are loans available for nearly every legitimate purpose. It's a matter of finding a loan that suits your purpose. You can use a low interest personal loan to fund the following:

How can I compare low interest personal loans?

With lower interest rates, the cost of repayments and the loan could be brought down. However, when comparing loans, you should look at more than the interest rate. There are other factors you should account for to find the cheapest loan. A lower interest rate may make the loan look cheaper, but it could end up being more expensive.

The checklist below can help you compare loans and find the cheapest option. You should ask yourself the following when comparing loans:

  • What type of a loan do I need?

The answer to this depends on your borrowing needs. Do you need a secured or an unsecured personal loan? Would you prefer to receive a lump-sum payment? Or would you prefer a line of credit? Some loans offer lump-sum payments. But if you prefer a personal overdraft or line of credit, a loan offering a lump sum may not be suitable for you. You need to determine what the best personal loan is for your borrowing needs.

  • What is the comparison rate of the loan?

The comparison rate is the true cost of the loan. Like the interest rate, this is also displayed as a percentage. It includes the interest rate plus the various fees and charges that come with the loan. The comparison rate is often higher, but never lower than the interest rate. It is how much you will actually pay for the loan.

  • Are there additional fees?

While a low interest rate can help you save money, high ongoing fees can increase the cost of your loan. It is also possible that your low interest loan could end up costing more because of high fees. Check if your lender is charging an establishment fee, a monthly fee or an annual fee. Comparing your loans with the comparison rate in mind, and not just the interest rate, can give you a better idea of the cost of the loan.

  • Can I repay my loan early or make additional repayments?

Some loans come with the option of making early or extra repayments. This can help you pay off the loan sooner. This is usually a feature of a loan with a variable rate of interest, but some fixed rate loans also offer it. You should check if there are any limits on additional repayments. Some loans may have a cap on how much you can repay in a year. You should also look out for any penalties for paying the loan early.

  • What are my loan terms and loan amounts?

Your loan term is the period in which you have to repay your loan. You need to check if you are able to borrow the loan for the time period you need to pay it off. Fixed and variable loans come with loan terms of one to seven years. However, some lenders only offer certain terms within that range. This could be loans with one-, three- or five-year terms.

When calculating the cost of your loan, you need to check if it will be cheaper to opt for a loan with shorter terms. For example, this could mean you have to pay $550 a month for 2 years instead of $500 for 3 years. Your repayments may be higher for the two-year loan, but you could save money in the long run. This is because you will have to pay interest and fees only for two years, not three.

You will also need to check if the lender offers the amount you need. Some lenders, like nonbanks, may not lend large sums of money. Based on this, you can narrow down your choices.

  • Is the loan flexible?

Some loans come with flexible payment options. You could make weekly, fortnightly or monthly repayments. Some loans may not give you this flexibility. It's also important to check if you can make your repayments easily. Are they automatically dedicated through direct debit?

  • What extra features does my loan come with?

Some loans offer redraw facilities to access extra repayments. Others may even offer frequent flyer points. There could also be a mobile app or online account, which could make account management easier. Check what extra features your lender offers, if you need them and if you have to pay for them. Paying for features you don't want will only add to the cost of your loan.

  • Do I meet the eligibility criteria?

Depending on your circumstances, you may be eligible for some loans and not others. Your eligibility is influenced by various factors, including your credit score, employment status or level of income. It could be the difference between a loan with low or high interest.

How much will my repayments be on a low interest loan?

Your personal loan repayment will depend on several factors. This includes your loan term, loan amount, the rate you qualify for plus any fees attached. We've drawn up a table to give you an idea of what you may have to pay based on these variables.

This table has calculated your repayments based on a fixed rate personal loan of $25,000 with $10 fees per month:

Loan term
Interest rate
Monthly repayments
Total repayments
3 years6% p.a.$771$27,740
3 years8% p.a.$793$28,563
3 years11% p.a.$828$29,825
5 years6% p.a.$493$29,599
5 years8% p.a.$517$31,015
5 years11% p.a.$554$33,214

Five tips to help you get the lowest rate Low Interest Personal Loan Graph

  1. Check your credit score. Your credit score tells your lender what kind of a borrower you are. If you have a good credit score, you're a low-risk borrower. If you have a poor credit score, you're a high-risk borrower. Make sure your credit is in good standing by checking your credit score and full credit report for free on Finder.
  2. Is the loan risk-based? If you have a good credit score, you could potentially stand to gain from a risk-based loan. If your credit score isn't good and the loan is risk-based, you'll probably have to pay more than the advertised rate.
  3. Use collateral. If you offer security for the loan, you will usually get lower interest rates and fees on your loan. This is because the collateral makes the loan less risky for the lender.
  4. Always compare. Don't settle for the first loan you find. You could potentially find something cheaper if you spend some time comparing loans and loan features.
  5. Negotiate with your lender. Your lender may offer you a particular rate based on your financials, but you could get a lower rate if you negotiate. This is where comparing loans comes in handy. You could point to a competitor's rate and let your lender know that you find the competitor's rate more compelling. They could offer a better rate to retain you.

Is there a catch with low-rate personal loans?

Low-interest rates are a great feature for lenders to advertise, but they aren't the only feature you should be considering. Remember to look at the loan as a whole package to decide if it's for you. For example, a loan may come with a low interest rate but have a $10 monthly fee, which can really add up over a 3-year loan term. Or, the loan may come with a low interest rate but not let you make extra repayments or repay the loan early without penalty. So, along with checking the interest rate, check what else you will be charged (upfront and ongoing fees), how flexible the loan is and whether it offers all of the features you need.

How do I compare lenders? Bank vs non-bank lenders

BanksNon-bank
Rates❌ Banks may have higher interest rates than non-banks.✔️ As they have lower overheads than bigger lending institutions, non-banks are able to offer lower interest rates.
Risk-based✔️ Available, but options may be limited.✔️ This type of product is more common among non-bank lenders. People with good-to-excellent credit histories can benefit from this.
Borrowing capacity✔️If you're looking for a large personal loan, it may be easier to find the amount you need with a bank.❓ Most non-bank lenders will offer loan amounts similar to big banks. But banks have more capital available and you may find it easier to get a higher amount with a bank (granted you have good credit).
Set-up fees✔️ Banks may offer lower set-up fees, even though their interest rates may be higher.❌ May have higher set-up fees than banks.
Regulations✔️All banks are regulated by ASIC and APRA.✔️ All non-bank lending institutions are ASIC-regulated. Some lenders are regulated by both APRA and ASIC.
Lending criteria❌ Banks have a strict lending criteria. Most banks will not consider bad credit borrowers.✔️ Most non-banks are able to offer personalised rates, which allows them to offer loans to people with poorer credit scores. You may not be able to get a low rate loan if you have poor credit.
Branches✔️ Most big banks have numerous physical branches Australia-wide.❌ Most non-bank lenders do not have physical branches. This may not be preferable if you prefer face-to-face interaction.

✔️ If you prefer the flexibility of digital spaces, non-bank lenders cater to this.

Features✔️ Bigger banks may be able to offer more product features on their loans than smaller lending institutions.❓ As they have less capital than the bigger banks, non-bank loan products may be less likely to have additional features like redraw facilities. This is not the case for all non-bank loans.
Lending solutions❌ Takes longer for traditional banks to come up with and implement innovative lending solutions.✔️ Smaller lenders can offer innovations that take larger lenders longer to implement. This can include loan applications using social media, loans secured with jewellery or term deposits, or funds that can reach your bank account within an hour of approval.
Application process❌ Big banks generally have lengthier application processes. It may take longer and there may be more paperwork.✔️ Application process may be faster and easier.
Reputation✔️ Big banks are well-established. Their reputations are also easy to research.✔️ All non-bank lenders are regulated by ASIC. The risk of opting for a non-bank lender is limited.

Should I opt for a fixed or variable rate?

FixedVariable
FluctuationsDoesn't fluctuate.

✔️ You'll pay the same amount each month even when rates rise.

❌ You'll miss out saving if the interest rate drops.

✔️ Less to worry about. You don't have to keep your eyes fixed on interest rates.

Fluctuates.

✔️ If it goes down, you could save more on your loan.

❌ If it goes up, you end up paying more. Lenders reserve the right to raise their interest rates at any time.

Budgeting✔️ You'll know exactly how much you'll be paying. This can make it easier to budget.❌ Your repayments could change from one month to the next. This can make budgeting more difficult.
Interest rates❌ Fixed rate loans can have higher interest rates than variable rate loans.✔️ Variable rate loans generally have lower interest rates.
Repayment terms❌ Usually available on terms of up to five years.✔️ Usually available on terms of up to seven years.
Flexibility❌ Repayment terms are less flexible.✔️ Repayment terms are generally more flexible.

Can I borrow a loan with 0% interest?

No interest loans do exist. As the name suggests, these loans come without interest rates and feature no fees or charges. You will only have to repay the amount you borrowed.

These loans often feature low borrowing amounts, sometimes with a maximum of $1,500 dollars. Some of these loans are government subsidised and are reserved for people in difficult financial circumstances. For instance, Good Shepherd Microfinance offers a no interest loan (NILS) for the purchase of essential goods and services. You have to be below a certain income threshold to qualify for this type of loan.

The Army Relief Trust Fund also offers no interest loans for defence personnel. To qualify for this loan, you need to be a member of the defence service.

You can read our guide on no interest loans to learn more.

Low vs no interest loans

There are two types of no interest loans and two types of low interest loans. These include the following:

  • Traditional low interest personal loans. These are provided by banks and non-bank lenders.
  • Low interest loans (StepUP). Provided by Good Shepherd Microfinance in collaboration with NAB. This loan allows you to borrow up to $3,000 to pay for essential goods and services.
  • Buy now, pay later interest-free loans. These loans are provided by buy now, pay later providers such as Afterpay and Zip and some individual retail outlets.
  • No interest loans (NILS). Provided by Good Shepherd Microfinance and subsidised by the government.
Low interest personal loans
Low interest loans (StepUP)
No interest loans (NILS)
No interest (BNPL)
ProviderTraditional bank and non-bank lendersGood Shepherd Microfinance, in collaboration with NABGood Shepherd MicrofinanceBuy now, pay later providers, and some individual retail outlets
Interest rateFrom 5.95% p.a. to 9.41% p.a.Currently 5.99% p.a.0%0%
Loan amount$2,001 to $100,000$800 to $3,000Up to $1,500Up to $30,000, depending on the provider
Loan termFrom 1 to 7 years3 years12 to 18 monthsRoughly 1 to 24 months (depending on the provider)
Credit scoreUsually available only to people with good or excellent creditHaving a good credit score is not requisiteThere are no credit checks with these loansSome providers will perform credit checks, while others may not
EligibilityOften exclusively available to people in full-time employmentOnly available to people who have a Health Care or Pension Card or qualify for Family Tax Benefit APeople on low incomesWidely available to most consumers
UseYou can use these loans for any legitimate purposeYou can use these loans for car purchases, car repairs, necessary household items, vocational education, computers, medical expenses or furnitureYou can use these loans for car repairs, necessary household items, vocational education, computers, medical expenses or furniturePurchases from any merchant signed up to a BNPL provider
TypeLow rate loans usually must be secured by an asset, but

some low rate loans may be unsecured

UnsecuredUnsecuredUnsecured

Can I get a low interest loan if I apply with my partner?

This will depend on both your credit scores. If both your credit scores are good, you may get a lower rate on your personal loan.

You could even be approved for a bigger loan amount as both your incomes are combined.

To be approved for a loan, you must ensure you both meet the minimum eligibility criteria.

There are things to keep in mind, however. If you're both eligible but your partner has a better score, it will work to your advantage. If you apply for a risk-based loan, you could get a lower rate than if you applied on your own.

But if your partner's score is less than yours, you may be approved for a higher rate loan than if you applied on your own.

Can I get a low interest loan if I'm self-employed?

You should be able to get a low interest loan if you're self-employed and have a good credit history. But if your credit is poor, your options may be limited.

To ensure you're offered the lowest rate possible, supply as much supporting documentation as you can. You need to be able to prove you can repay the loan without difficulty. This could include the following:

  • Tax returns. Be prepared to show the last two years of your personal and/company tax returns. This will help prove your income declaration on your applications.
  • Recent bank statements. This includes statements showing savings and business transactions. It may also include statements showing any other outstanding loans or credit cards you have with other lenders.
  • Financial statements. These may include any profit and loss statements to support your income declaration.
  • Notice of Assessment. Keep handy your most recent Notice of Assessment (NOA) given to you by the Australian Taxation Office (ATO). This will have information on the income tax you owe or owed. Depending on the lender, you may need to provide your NOAs from the last two years.
  • Company-specific information. If you own your own business, be prepared to provide information such as your company's ABN, address, etc.
  • Proof of rental income. If you receive income from rental properties, you can declare this with real estate statements or copies of your executed lease agreements.
  • Personal identification. Depending on the lender, this may be your Australian driver's licence, passport or proof of age card.

Smiling woman text messaging on smart phone while leaning on friend's leg in living room

Can I get a low interest loan if I have bad credit?

If you have a poor credit history, the lender will view your application as high risk. This will make it difficult to get a low interest rate. By charging a higher interest rate, lenders attempt to offset the risk of lending to high-risk borrowers.

That does not mean you will never be approved for a low rate loan. You can improve your chances if you do the following:

  • Secure the loan. If you have bad credit, you can offer an asset as security. This could be real estate, a vehicle or even valuable art or jewellery. With security, you could potentially lower your rate and increase your chances of approval.
  • Get a guarantor. A guarantor is someone who offers to pay the debt on your behalf if you fail to do so yourself. Someone with a good credit history, and who has real estate assets, could reduce your rate. You should ensure you are confident you can meet your repayments before asking someone to act as a guarantor.
  • Improve your credit rating. A bad credit rating is not forever. There are steps that you can take to improve your credit rating before applying for a personal loan.

Is a low rate personal loan better than a credit card?

Whether a credit card or a low rate personal loan is a better option depends on a number of factors, including the following:

  • How much you need
  • What you need the funds for
  • Your income
  • Your credit rating

We've listed what personal loans and credit cards are suitable for and what their respective pros and cons are below.

ProsConsSuitable for
Low interest personal loansTypically lower interest rates than credit cards.You will carry the debt for over a year as there is a minimum loan term.Large, one-off purchases such as home renovations, weddings, holidays and cars.
May be cheaper in the long term.Can be inflexible (e.g. it may charge for redraw options or early repayments).Debt consolidation.
Your debt comes with an end date as there is a repayment schedule.Application time can be longer.Borrowing over a long period of time.
Can curb impulse spending as the loan is taken out for a specific purpose, in consultation with the bank.You may need a good to excellent credit rating.

ProsConsSuitable for
Credit cardsImmediate spending.Usually have higher interest rates.Purchases less than $5,000.
Can include rewards such as frequent flier miles.Only requires minimum repayment each statement period, which means that you could potentially carry on the debt for an indefinite period, and may be charged more for it.A continuous small amount of credit.
A revolving line of credit.Balance transfer rate reverts to the cash advance rate eventually.Small debt consolidations.
Balance transfers are available for debt consolidation.Short term debts.
You can get interest-free days.Everyday shopping or retail purchases to earn reward points.
You can improve your credit rating if you make your payments on time.Spending amounts that you can pay back within the introductory period.
Easier to qualify for with less than perfect credit history.

What is the eligibility criteria?

The eligibility criteria will differ between loans, but the following are some basic requirements you will need to meet:

  • Be over the age of 18
  • Have a good credit rating
  • Be an Australian citizen or permanent Australian resident

The information you will be asked to provide will depend on the loan you apply for. You will most likely need to provide the following:

  • Personal details including your name, contact information and proof of identification
  • Name and contact details of your employer
  • Details of your employment, including income amount and how you're employed (full-time, part-time, etc)
  • Financial details including your assets, liabilities and any other active credit accounts

You can check the eligibility criteria on each individual loan on the Finder review page. If you have any concerns, make sure you reach out to the lender directly before you apply.

How can I apply for a low interest personal loan?

Before you apply for a loan, you should compare your options using the table above. You can find a range of competitive options when you compare low interest rate personal loans. Make sure you consider a range of lenders to find the right loan for your needs and situation. Once you've found a loan you'd like to apply for, click "go to site" to apply.

Personal Loan Offers

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

You'll receive a fixed rate between 5.35% p.a. and 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 8.99% 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
Borrow from $5,000 to $55,000, with 1 years to 7 years loan terms available. This loan comes with no fees for extra repayments and no early exit fees.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 5.95% 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.

Ask an Expert

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30 Responses

    Default Gravatar
    AnwarApril 11, 2019

    Personal Loan

      Default Gravatar
      NikkiApril 12, 2019

      Hi Anwar,

      Thanks for reaching out to Finder!

      I see you’re interested in getting a personal loan. You can use our comparison table to help you find the lender that suits you. When you are ready, press the ‘Go to site’ button to apply. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.

      Hope this helps!

      Best,
      Nikki

    Default Gravatar
    RCFebruary 6, 2019

    Hi! When applying for a personal loan via this site, do the lenders only look at your credit score and report on finder as there are many different credit score sites that display different credit scores.
    Thank you!

      Avatarfinder Customer Care
      JoshuaFebruary 12, 2019Staff

      Hi Reb,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      When you apply for a personal loan featured on our website, the lenders have their own way of assessing your eligibility. The credit score you get from our website is generated by Experian. There are a lot of lenders who use Experian, but there are also those that use other credit reporting bureaus.

      In most cases, there is a small discrepancy between scores that you get from different bureaus. If the discrepancy is huge, then there could be an error that you need to fix.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

    Default Gravatar
    LeeJanuary 13, 2019

    Can I go for a loan?

      Avatarfinder Customer Care
      JoshuaJanuary 14, 2019Staff

      Hi Lee,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Yes, you can go for a loan as long as you meet the eligibility requirements of your chosen lender. You can compare your options above by using our comparison table. You can compare based on interest rate, loan term, and fees, to name a few. Once you found the right one for you, click on the “Go to site” green button to learn more or initiate your application.

      Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

    Default Gravatar
    WilfredoOctober 12, 2018

    hi, I am looking for a medical dental done overseas and pay a small personal loan and a credit card ,probably make extra repayments so I can pay back the sooner I can I need to borrow 25000.

      Avatarfinder Customer Care
      JohnOctober 12, 2018Staff

      Hi Wilfredo,

      Thank you for leaving a question.

      This page gives you a comprehensive list of lenders that you could reach out to if you need to borrow money. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!

      Cheers,
      Reggie

    Default Gravatar
    PaulMay 3, 2018

    I want to buy land in Thailand with my Thai wife we are looking for $45000 can you suggest the best loan for this.

      Default Gravatar
      ArnoldMay 5, 2018

      Hi Paul,

      Thanks for your inquiry

      Generally, Australian banks can’t take a foreign property as security for a home loan. However, they can help you fund your future investment plans if you have an existing property with enough equity. There are also a number of non-Australian owned international banks that may be able to help you with finance. A mortgage broker may be able to help you with this by getting touch with the branch themselves.

      One important thing to note is that some countries limit you to borrowing 80% of the property value or Loan to Value Ratio (LVR).

      Hope this information helps

      Cheers,
      Arnold

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