Can I get a small loan with low interest?

When comparing lenders it's important to check the minimum loan amount before applying. Most personal loan lenders in Finder's database have minimum loan requirements of between $2,000 and $5,000. If a lender says its minimum loan amount is $3,000, then it won't lend you $2,000. You can borrow very small amounts of money, but you'll have to look at a or other short term finance options. These smaller loans don't charge interest in some cases but charge hefty fees instead - up to 20% of the loan amount plus a 4% monthly fee. This makes a small loan a very expensive prospect.

Is it worth paying off a low interest loan early?

Any debt you can pay off faster saves you money. But another financial rule of thumb is to prioritise paying off high interest debts first. If you have a small low interest personal loan, a home loan and a big credit card debt you could approach it like this: Keep making the minimum repayments on all your debts, obviously. Prioritise putting any extra money you have into paying off the credit card debt as fast as possible. It has the highest rate. Once that's sorted out, concentrate on the personal loan debt, which has a higher rate than your mortgage. Keep in mind this is simply a general example and is not personal financial advice. Your own situation may be different.

Do banks have the lowest interest rates?

Online lenders often have the lowest interest rates on personal loans. But the stereotype of the big banks being uncompetitive with rates just isn't always true. Looking at Finder's database, even some of the Big Four banks have personal loans with much lower rates than average. So don't count them out completely when comparing your options. And if you're already a customer with a big bank, you might find personal loan approval is fast and easy. And if you're already using the bank's app, you've got all your financial products on your phone in one place. The convenience might be worth a slightly higher rate.

Can I get a low rate personal loan as a self-employed borrower?

Self-employed borrowers often choose low doc personal loans because they don't have evidence of consistent income to qualify for a standard loan. As you'd expect these loans have higher rates. But if you have alternative proof of income (business tax returns, financial statements), your business is doing well and you have a good credit score you could qualify for a standard personal loan with a low rate.

Can I get a lower rate from a peer to peer lender?

Peer to peer lenders are online platforms that connect investors with money to individual borrowers. You request a loan and the platform checks your credit, processes the application and connects you to the funds. When it works well, you can get a fast low rate loan approved without too much trouble. But if you're borrowing a lot and your credit score isn't great, your rate could rise a lot more. And it might end up being higher or comparable to other lenders. You might not be able to borrow as much via peer to peer lenders, and you might not get loan features like a redraw facility.