Can personal loans be refinanced?

Yes, personal loans can be refinanced. Refinancing involves taking out a new loan to pay off an existing one, often to secure a lower interest rate , reduce monthly payments , or change the loan term. Refinancing can be a good option if your financial situation has improved since you first took out the loan or if interest rates have dropped.

Can I borrow more money on my personal loan?

It is possible to borrow more money on your personal loan through a process called "top-up" or by refinancing. With a top-up loan , you increase the loan amount on your existing loan, subject to lender approval. Refinancing, on the other hand, involves taking out a new loan for a larger amount , which pays off the existing loan and provides you with additional funds.

Is refinancing a personal loan a good idea?

Refinancing a personal loan can be a good idea if it allows you to secure a lower interest rate , reduce your monthly payments, consolidate debts, or pay off your debt faster. It's important to consider any fees associated with refinancing and ensure that the new loan terms are beneficial in the long run.

Can I renegotiate my personal loan interest rate?

Yes, you can attempt to renegotiate your personal loan interest rate, especially if your financial situation has improved or if market interest rates have dropped. Contact your lender to discuss the possibility of lowering your rate. If renegotiation is not successful, refinancing with a new lender might be an alternative way to secure a better rate .

How do I get out of a personal loan?

To get out of a personal loan, you can pay off the remaining balance in full, refinance the loan to a new lender, or consolidate it with another loan. If you stop making payments on the loan, it can be sent to debt collectors and impact your credit rating .

Can I use a personal loan to pay off another loan?

Yes, you can use a personal loan to pay off another loan, which is a common form of debt consolidation . By consolidating multiple debts into one personal loan, you might be able to secure a lower interest rate and simplify your payments. It is important to compare the new loan terms to your existing debts to ensure this strategy saves you money.

How many times can I refinance a personal loan?

You can refinance a personal loan as many times as you'd like. You'd have to keep checking to see if its worth it, however if you have no early repayment or break fees the maths becomes simpler. It's important to remember that your credit score could be temporarily damaged when you take out a new loan. This is typical of how credit scores are measured, so by meeting your repayments in full and on time you could see your credit score return to normal or improve.

Can I refinance with the same lender?

You can refinance with your existing lender, and it's likely the most straight forward option you have. If they have deals for new customers, or if your credit score has improved, then you could have a decent case to be put on a lower rate.

Refinance your personal loan

You can refinance your personal loan by taking out a new loan to pay off your old loan.
You might want to refinance your personal loan because your credit score has improved, you've found a much better interest rate or because you want to consolidate multiple debts.
If you want to refinance your personal loan you'll need to consider costs like application fees or early repayment fees.

Compare personal loan refinance options

7 of 202 results

Interest rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
OurMoneyMarket Unsecured Low-Rate Personal Loan ($20,000-$100,000) ExclusiveFixed1 - 7 Years $20,000 - $100,000	Interest Rate (p.a.) 5.95% to 18.99%	Comp. Rate (p.a.) 5.95% to 21.78%	Application Fee $0 min.	Monthly Fee $0	Monthly Repayment $607.99	Finder exclusive: Receive a $100 eGift Card if you have Excellent Credit (as determined by OMM’s credit assessment and scorecard), apply via Finder by 31 Mar 2026, and settle by 15 Apr 2026. For loans between $20,000 and $100,000 only. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
NOW Finance No Fee Unsecured Personal Loan Finder AwardFixed18 Months - 7 Years $5,000 - $50,000	Interest Rate (p.a.) 5.95% to 26.95%	Comp. Rate (p.a.) 5.95% to 26.95%	Application Fee $0	Monthly Fee $0	Monthly Repayment $607.99	ENDS SOON! $500 VISA CARD REWARD 1 Join Finder 2 Settle a loan with NOW Finance 3 Get gift card up to $500 from Finder Ends by. T&Cs apply.	Borrow up to $50,000 for any worthwhile purchase and pay no establishment or ongoing fees without providing collateral. You can also benefit from a more competitive interest rate if you have a strong credit score.	Go to site View details Compare product selectionCompare	loading
Revolut Unsecured Personal Loan Fixed1 - 7 Years $5,000 - $50,000	Interest Rate (p.a.) 6.17% to 26.99%	Comp. Rate (p.a.) 6.17% to 23.79%	Application Fee $0	Monthly Fee $0	Monthly Repayment $609.98	Apply online and then access your funds in minutes if you're approved. Pay no monthly or annual fees to use the loan and no early repayment fees. Eligibility: Must be an Australian/NZ citizen or permanent resident, employed for 3+ months, earning at least $2,000/month, with a recommended Equifax credit score of 500+.	Go to site View details Compare product selectionCompare	loading
Jacaranda Finance Secured Personal Loan Fixed25 Months - 3 Years $3,000 - $25,000	Interest Rate (p.a.) 16.95% to 29.95%	Comp. Rate (p.a.) 32.99% to 45.50%	Application Fee $125 - $1,190	Monthly Fee $26	Monthly Repayment $780.95	Go to site View details Compare product selectionCompare	loading
Jacaranda Finance Unsecured Personal Loan Fixed25 Months $3,000 - $10,000	Interest Rate (p.a.) 27.95% to 29.95%	Comp. Rate (p.a.) 44.50% to 46.50%	Application Fee $13.50 - $950	Monthly Fee $26	Monthly Repayment $892	Go to site View details Compare product selectionCompare	loading
Westpac Unsecured Personal Loan Fixed1 - 7 Years $4,000 - $50,000	Interest Rate (p.a.) 7.00% to 21.99%	Comp. Rate (p.a.) 8.41% to 23.28%	Application Fee $250	Monthly Fee $15	Monthly Repayment $640.26	View details Compare product selectionCompare	loading
CommBank Fixed Rate Personal Loan Fixed1 - 7 Years $4,000 - $50,000	Interest Rate (p.a.) 7.00% to 22.00%	Comp. Rate (p.a.) 8.41% to 23.29%	Application Fee $250	Monthly Fee $15	Monthly Repayment $640.26	View details Compare product selectionCompare	loading

Showing 7 of 7 results

What is refinancing a personal loan?

Personal loan refinancing is when you take out a new personal loan and use it to pay off an existing loan. You might want to do this if you spot a better loan you are eligible for, for example if it has lower interest rates or fees. It's also commonly done by people who have improved their credit score and want to take advantage of lower rates and can be done through your existing lender or through an entirely different lender.

If you qualify for a loan with a lower interest rate than your current personal loan, refinancing can save you money over the lifetime of your loan - however keep an eye out for early repayment fees in your original loan as these could wipe out any potential savings.

How do you refinance a personal loan?

Refinancing your personal loan may sound complicated, but the process tends to be fairly straight forward:

Compare personal loans with your existing loan to see if there's a better deal. Keep in mind most lenders advertise their lowest rates, and depending on your credit score you may be charged a higher rate.
(Optional) Call your current lender and try to negotiate a price match or lower rate. If your credit score has improved since you took out the loan, be sure to mention that.
Apply for your new loan.
If approved, your new lender will either pay the funds to you for you to pay off your old lender, or your new lender will pay your old lender directly.

Aussies switching personal loans

According to Finder's Consumer Sentiment Tracker, 16% of Australians have switched their personal loan in the last 6 months.

Source: Finder's Consumer Sentiment Tracker

When should I look at refinancing a personal loan?

You should look at refinancing your personal loan, in short, when you think you can save money or if you need to extend your loan term. There could be a few reasons for this:

Your credit score has improved. If your credit score has improved, you may qualify for a loan with better terms and a lower rate than your current loan. This could be with your current lender or through a whole new lender.
You've found a better deal. If you see a loan you're eligible for that looks like it has lower rates or fees, that's a good enough reason to refinance. Be sure to get a quote from this potential new lender, as advertised rates can vary from reality depending on your credit score.
You're consolidating debt. If you have multiple types of debt, it could be worth refinancing into a personal loan that can pay them all off so that you are left with one single debt. This makes it easier to manage repayments and, depending on your other debts, could result in a lower interest rate.
You need a longer loan term. If you've had your loan for a while and need more time to pay it off or want to lower your monthly repayments, refinancing can enter you into a new contract and a new loan term. Remember that the longer your term, the more you pay overall.

Other than ensuring your new interest rate is lower than your old, the big thing to watch out for are break fees or early repayment fees. If your old lender charges these, they could potentially wipe out the savings you would make through refinancing.

Expert insight: Look beyond rates when comparing new loans

"When comparing options, you'll want to look beyond just rates and fees to make sure that the loan suits your needs and financial situation. What loan term and repayment schedule will work best for your budget? Is a variable or fixed rate loan right for you? Do you want the flexibility to repay your loan early without extra fees?"

Jonathan Wu

Chief operating officer & chief product officer, MONEYME

Does refinancing your personal loan hurt your credit score?

Refinancing can hurt your credit score in some circumstances and it can improve it in others. Take a look at some of the ways refinancing can potentially harm and benefit your credit score:

How it can benefit your credit score

Fewer open accounts. If you're taking out a new loan to refinance multiple personal loans, your credit score could improve, because you'll have fewer open accounts with outstanding balances.
Meet your repayments. If you make your repayments on time, your credit score will improve – this is the biggest contributing factor towards your credit score.

How it can harm your credit score

Multiple applications. If you apply for multiple new personal loans, you may find that your credit score takes a hit.
You don't meet your repayments. Defaulting on a new loan will have a negative effect on your credit score.

What are the costs of refinancing a personal loan?

Banks and lenders don't want you jumping ship every time you see a cheaper rate from a competitor, which is why refinancing can come at a cost.

Fees to take into account when calculating the costs of refinancing include the following:

Application fees could set you back as much as $300, so confirm if you will be charged a fee on the new loan.
Early repayment fees, or break fees, are sometimes charged by lenders and can put a considerable dent in the savings you could make from switching. Some are a flat rate, and others can be a percentage of your outstanding balance. Either way it could be hundreds of dollars.

When determining the value of refinancing, remember to take all aspects of both loans into consideration.

Frequently Asked Questions

Yes, personal loans can be refinanced. Refinancing involves taking out a new loan to pay off an existing one, often to secure a lower interest rate, reduce monthly payments, or change the loan term. Refinancing can be a good option if your financial situation has improved since you first took out the loan or if interest rates have dropped.
It is possible to borrow more money on your personal loan through a process called "top-up" or by refinancing. With a top-up loan, you increase the loan amount on your existing loan, subject to lender approval. Refinancing, on the other hand, involves taking out a new loan for a larger amount, which pays off the existing loan and provides you with additional funds.
Yes, you can attempt to renegotiate your personal loan interest rate, especially if your financial situation has improved or if market interest rates have dropped. Contact your lender to discuss the possibility of lowering your rate. If renegotiation is not successful, refinancing with a new lender might be an alternative way to secure a better rate.
Yes, you can use a personal loan to pay off another loan, which is a common form of debt consolidation. By consolidating multiple debts into one personal loan, you might be able to secure a lower interest rate and simplify your payments. It is important to compare the new loan terms to your existing debts to ensure this strategy saves you money.
You can refinance a personal loan as many times as you'd like. You'd have to keep checking to see if its worth it, however if you have no early repayment or break fees the maths becomes simpler.
It's important to remember that your credit score could be temporarily damaged when you take out a new loan. This is typical of how credit scores are measured, so by meeting your repayments in full and on time you could see your credit score return to normal or improve.

Sources

Why compare personal loans with Finder?

Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)

Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.

Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.

Thank you for your feedback!

Written by

Rebecca Pike

Editor, Money

Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

Rebecca's expertise

Rebecca has written 299 Finder guides across topics including:

Home loans
Personal Loans
Car Loans
Cost of living
Budgeting

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2 Responses

DanApril 1, 2019

Hi, I’ve got a loan of $35k+ currently with a 16.4%pa variable interest rate received about 4 years ago when my income was $40k/year less than now. Can I negotiate my loan amount with my big 4 bank lender? Or would I be better off with another lender?

Finder

MaiApril 2, 2019Finder

Hi Dan,

Thank you for contacting Finder.

While you can negotiate home loans, you can also try if that could also be available for personal loans if you are to refinance. To help you with negotiating, it may be a good idea to take a look around to see what interest rates are currently offering to new customers by the big four and other lenders too. This may help you work out if you’re getting a good deal and it will also strengthen your argument when it comes time to talk to the bank for possible negotiation.

Hope this helps.

Kind Regards,
Mai

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Refinance your personal loan

Whether your credit score improved or you simply found a loan with a lower rate, refinancing your personal loan can save you money and get you out of debt faster.