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| 4.99 | % p.a. |
| 4.99 | % p.a. |
| 6.39 | % p.a. |
| 6.39 | % p.a. |
| 5.45 | % p.a. |
| 6.07 | % p.a. |
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:
| Lowest unsecured fixed rate product | Interest rate | Comp. rate | More info |
|---|---|---|---|
| Australian Military Bank Fixed Rate Personal Loan | From 5.85% p.a. | From 6.70% p.a. | |
| Citi Ready Credit (3 Years Balance Transfer) | 3.99% p.a. | - | |
| Community First Credit Union Green Loan | From 3.99% p.a. | From 4.99% p.a. | |
| MoneyMe Personal Loans | From 6.25% p.a. | From 7.64% p.a. | |
| Plenti Fixed Rate Personal Loan | From 6.39% p.a. | From 6.39% p.a. | |
| MoneyPlace Unsecured Personal Loan | From 6.45% p.a. | From 6.45% p.a. | |
| Handypay Personal Loan | From 6.75% p.a. | From 6.96% p.a. | |
| Alex Personal Loan | From 4.99% p.a. | From 4.99% p.a. | |
| NOW Finance No Fee Unsecured Personal Loan | From 5.95% p.a. | From 5.95% p.a. | |
| Pepper Money No Fee Personal Loan | From 5.95% p.a. | From 5.95% p.a. |
| Lowest unsecured variable rate product | Interest rate | Comp. rate | More info |
|---|---|---|---|
| Australian Military Bank Green Loan | 4.15% p.a. | 5.09% p.a. | |
| Australian Military Bank Variable Rate Personal Loan | From 5.85% p.a. | From 6.70% p.a. | |
| Symple Loans Personal Loan | From 5.75% p.a. | From 6.47% p.a. | |
| Community First Credit Union Home Improvement Loan | From 3.99% p.a. | From 4.99% p.a. | |
| Plenti Variable Rate Personal Loan | From 6.39% p.a. | From 6.39% p.a. | |
| Maleny CU Solar Loan | From 6.95% p.a. | From 6.95% p.a. | |
| Bank Australia Personal Loan Property Owner | 7.89% p.a. | 8.92% p.a. | |
| Endeavour Mutual Bank Unsecured Personal Loan | From 7.99% p.a. | From 8.20% p.a. | |
| Sydney Mutual Bank Unsecured Personal Loan | From 7.99% p.a. | From 8.20% p.a. | |
| Laboratories CU Home Renovation Loan | From 8.60% p.a. | From 8.63% p.a. |
| Lowest secured fixed rate product | Interest rate | Comp. rate | More info |
|---|---|---|---|
| RAA Member Secured Loan | From 5.45% p.a. | From 5.80% p.a. | |
| ILLAWARRA Credit Union Secured Fixed Rate Personal Loan | From 5.64% p.a. | From 5.92% p.a. | |
| RAC Finance Any Worthwhile Purpose Loan | From 5.70% p.a. | From 6.11% p.a. | |
| NOW Finance Secured Personal Loans | From 4.45% p.a. | From 4.45% p.a. | |
| Latitude Personal Loan (Secured) | From 5.99% p.a. | From 7.26% p.a. | |
| IMB Secured Personal Loan | 5.98% p.a. | 6.33% p.a. | |
| RAA Non-Member Secured Loan | From 6.45% p.a. | From 6.94% p.a. | |
| Beyond Bank Low Rate Personal Loan | From 6.49% p.a. | From 7.18% p.a. | |
| Greater Bank Secured Personal Loan | From 5.99% p.a. | From 6.37% p.a. | |
| RACV Personal Loan | From 6.49% p.a. | From 7.19% p.a. |
| Lowest secured variable rate product | Interest rate | Comp. rate | More info |
|---|---|---|---|
| Endeavour Mutual Bank Term Deposit Secured Loan | From 4.45% p.a. | From 4.65% p.a. | |
| Coastline CU Personal Loan - Secured with Fixed Term Deposit | From 4.61% p.a. | From 5.96% p.a. | |
| Coastline CU Personal Loan - Secured with Property Mortgage | From 4.61% p.a. | From 11.42% p.a. | |
| QBank Mortgage Secured Overdraft | From 4.64% p.a. | - | |
| First Option Bank Cash Secured Loan | From 4.99% p.a. | From 5.23% p.a. | |
| Goulburn Murray CU Secured Personal Loan | From 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 Overdraft | From 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
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.
There are certain types of loans you can look at if you want a low interest rate. These include the following:
Comparing can help you find a loan with a low interest rate.
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:
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.
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:
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:
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:
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.
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.
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.
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.
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.
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?
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.
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.
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 years | 6% p.a. | $771 | $27,740 |
| 3 years | 8% p.a. | $793 | $28,563 |
| 3 years | 11% p.a. | $828 | $29,825 |
| 5 years | 6% p.a. | $493 | $29,599 |
| 5 years | 8% p.a. | $517 | $31,015 |
| 5 years | 11% p.a. | $554 | $33,214 |
| Banks | Non-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. |
| Fixed | Variable | |
| Fluctuations | Doesn'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. |
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.
There are two types of no interest loans and two types of low interest loans. These include the following:
Low interest personal loans | Low interest loans (StepUP) | No interest loans (NILS) | No interest (BNPL) | |
| Provider | Traditional bank and non-bank lenders | Good Shepherd Microfinance, in collaboration with NAB | Good Shepherd Microfinance | Buy now, pay later providers, and some individual retail outlets |
| Interest rate | From 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 $3,000 | Up to $1,500 | Up to $30,000, depending on the provider |
| Loan term | From 1 to 7 years | 3 years | 12 to 18 months | Roughly 1 to 24 months (depending on the provider) |
| Credit score | Usually available only to people with good or excellent credit | Having a good credit score is not requisite | There are no credit checks with these loans | Some providers will perform credit checks, while others may not |
| Eligibility | Often exclusively available to people in full-time employment | Only available to people who have a Health Care or Pension Card or qualify for Family Tax Benefit A | People on low incomes | Widely available to most consumers |
| Use | You can use these loans for any legitimate purpose | You can use these loans for car purchases, car repairs, necessary household items, vocational education, computers, medical expenses or furniture | You can use these loans for car repairs, necessary household items, vocational education, computers, medical expenses or furniture | Purchases from any merchant signed up to a BNPL provider |
| Type | Low rate loans usually must be secured by an asset, but some low rate loans may be unsecured | Unsecured | Unsecured | Unsecured |
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.
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:
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:
Whether a credit card or a low rate personal loan is a better option depends on a number of factors, including the following:
We've listed what personal loans and credit cards are suitable for and what their respective pros and cons are below.
| Pros | Cons | Suitable for | |
| Low interest personal loans | Typically 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. |
| Pros | Cons | Suitable for | |
| Credit cards | Immediate 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. |
The eligibility criteria will differ between loans, but the following are some basic requirements you will need to meet:
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:
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.
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
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
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!
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
Can I go for a loan?
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
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.
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
I want to buy land in Thailand with my Thai wife we are looking for $45000 can you suggest the best loan for this.
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