You can use a personal loan to cover your next big purchase, consolidate debt or any other personal expense. Getting a low interest rate helps keep your ongoing costs down and your repayments manageable.
Find out what to look for and compare low rate personal loans below.
RateSetter Unsecured Personal Loan - 3yr Variable
RateSetter Unsecured Personal Loan - 3yr Variable
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RateSetter Unsecured Personal Loan - 3yr Variable
RateSetter offers this unsecured personal loan with a fixed or variable rate. Receive a tailored interest rate from 6.89% p.a. based on your risk profile.
9.99% p.a. interest rate. A flexible low interest rate loan with lots of flexibility and no monthly fees.
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:
Secured personal loan. If you have an asset to offer as a guarantee, such as a vehicle or even a term deposit, you can get a lower rate with a secured personal loan. The security makes the loan less of a risk for the lender 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, which 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. There are a number of competitive unsecured personal loans available in 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.
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're charged an establishment fee, 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.
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.
What else should you look at besides the interest rate?
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 loan 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 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.
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
You can check the eligibility criteria on each individual Finder review page. If you have any concerns, make sure you reach out to the lender directly before you apply.
How you can apply for a low interest rate personal loan
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" to apply. The information you're 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're employed e.g. 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.
Jeremy Cabral is the chief operating officer and global head of publishing for Finder. He has written hundreds of comparisons covering everything from credit cards to travel money to Netflix TV shows. Jeremy has a Bachelor of Business (Marketing) from the University of Western Sydney.
You'll receive a variable rate between 9.99% p.a. and 17.99% p.a. (9.99% p.a. to 17.99% p.a. comparison rate) based on your risk profile A credit limit up to $75,000 that you can continue to draw down over terms up to 5 years. Note: No establishment fee and no monthly account service fees apply if you apply and are approved before 31 March 2020.
You'll receive a variable rate between p.a. and 16.40 p.a. based on your risk profile A flexible loan with amounts from $2,001 and terms starting from 6 months. Interest and comparison rates calculated for a loan term of 3 years.
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