Don't pay more than you need to – take advantage of low interest rates on personal loans.
If you're considering a personal loan to help you make your next big purchase, consolidate debt or take any other step in your life, you want to be sure you're taking on a competitive product. Low interest rate personal loans help you keep your ongoing costs low and your repayments manageable. Compare a range of these loans and find a low interest rate loan for you.
Low interest rate personal loans you can compare
Low rate personal loan comparison
Compare the features of some of these low rate personal loans
|Product||Advertised Rate||Comparison Rate|
|ANZ Fixed Rate Personal Loan||13.95% p.a.||14.81% p.a.|
|HSBC Personal Loan||9.5% p.a.||10.06% p.a.|
|CUA Fixed Rate Personal Loan||10.99% p.a.||10.99% p.a.|
|SocietyOne Unsecured Personal Loan||7.88% p.a.||9.9% p.a.|
How can you compare low interest rate personal loans?
A personal loan with a low interest rate can help you keep your ongoing repayments down while giving you access to the funds you need. But an interest rate is not the only feature a personal loan comes with.
- Check what fees apply. While a low interest rate can help you save, high ongoing fees can make your loan more expensive than it needs to be. See if you are charged an establishment fee or monthly or annual fees for your personal loan. Comparing your options by the comparison rate rather than the interest rate will also give you a better idea of the loan cost.
- See how flexible the repayments are. Most lenders will offer you the option of making weekly, fortnightly or monthly repayments, but not all do. It's also important to check how easy it is to make your repayments – are they automatically deducted from your account on the due date? Can you manage your account easily online?
- Determine if you can repay your loan early or make additional repayments. Repaying a loan early or making extra repayments is usually reserved for loans with variable interest rates, but some fixed rate loans also offer these features. Check if there are any limits on additional repayments (you may only be able to repay a certain amount per year) and if you will be charged a penalty for repaying early.
- Evaluate the loan term and loan amounts. These will need to meet your borrowing needs. Are you able to borrow the amount you need for the time period you require to pay off the balance? Most lenders offer fixed rate loans with terms of between one and five years, and variable rate loans up to seven, but some lenders only offer certain terms within that range, such as one-, three- or five-year loans.
What types of personal loans have low rates?
There are various types of personal loans in the market to suit most borrowers' needs, and some of these offer low rates. Here is a breakdown of the types of personal loans you can get:
- Secured loans
This type of loan is used to purchase a car or another large asset, such as a boat or caravan. This will come with the most competitive interest rates because the asset you purchase is used as security by the lender in case you default on your loan. These loans have more restrictions than unsecured loans. For example, some lenders base the loan amount on the value of the asset you purchase.
- Unsecured loans
Unsecured personal loans are similar to secured loans, although the lender does not require you to use an asset as security. Due to the increased amount of risk the lender is taking on, interest rates for these loans are usually higher, but you can still find competitive rates when you compare.
Unsecured loans are also more flexible when it comes to restrictions the lender places on the loan. For instance, you're able to use the loan amount however you like. This can be for one purchase or for a number of different purposes.
- Debt consolidation loans
Another reason people opt for personal loans with low interest rates is to help them consolidate their debts. By moving all of your debts into one personal loan you may be able to save yourself money and better manage your repayments. These loans are unsecured and you can find low rates when you compare your options.
- Check your credit score
Make sure your credit is in good standing by checking your credit score for free with finder.com.au.
- Collect all your necessary documents
You'll need your payslips, ID, and details of your finances (assets, income, debts and expenses). This will help prove you can service the loan repayments.
- Compare and apply online
It's important to compare all your personal loan options before applying. You can start with some low interest rate personal loans in the table above.
Is the interest rate the only thing you need to look at?
Although it may be tempting to compare rates and just pick the lowest option, there are various other loan features you need to consider before you decide which loan to go with.
- What type of loan do you need? Personal loans can be secured or unsecured and can come in the form of a lump sum payment (as is the case with most loans) or as a line of credit, as you find with personal overdrafts and line of credit loans. Determine what's the best for your borrowing needs.
- What extra features does the loan come with? These could be easy account management in the form of a mobile app or online account, a redraw facility to access extra repayments or even frequent flyer points.
- What is the eligibility criteria? You will generally need to be over the age of 18 and a permanent Australian resident or citizen. Most lenders also set a minimum income which is usually a minimum of $14,000 p.a. (for smaller loans). Eligibility criteria are outlined on all finder.com.au review pages.
- How flexible is the loan? This is in terms of repayment flexibility, flexibility with the loan purpose, and with changes to your lifestyle. For instance, can you top up your personal loan if you need to?
Is there a catch with cheap low rate personal loans?
When you compare low interest rate personal loans it's important to look at the loan as a whole product package, rather than just the interest rate. Comparing your options by the comparison rate rather than the advertised rate can also give you a better idea of the true cost of the loan, as this incorporates fees and charges.
You can also use a personal loan calculator to see if your repayments will be manageable on your budget.
What's the eligibility criteria?
Eligibility criteria will differ between loans, but generally, you will need to meet the following requirements:
- Be over the age of 18
- Have a good credit rating
- Be an Australian citizen or permanent Australian resident
Check the criteria of individual loans on
How you can apply
If you would like to apply for a personal loan with a low interest rate you can compare your options using the table above. Once you've found a loan you'd like to apply for you can click "Go to Site" apply. The information you are required to provide will be different depending on the type of loan you apply for, but 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 are employed eg full time, part time, etc.
- Financial details including your assets, liabilities, and any other active credit accounts.
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.