Unsecured personal loans

Find and compare unsecured personal loans.

An unsecured personal loan allows you to borrow funds without using an asset as security. You get more flexibility and can use the loan to cover a holiday, car, renovations or any other worthwhile purchase.

What are the benefits of an unsecured personal loan?

  • Flexibility. You can use the loan amount however you need to. For example, you can use some of the funds to purchase furniture and the rest to consolidate debt. How you use it is up to you.
  • Lots of options. This is a very standard type of loan so you'll find most banks and lenders offer their own version of an unsecured personal loan. This gives you a wide range of options to compare to find the right one for you. You can choose which interest rate type you want, which loan terms work for you and which features you want to take advantage of.
  • Rates. While interest rates are generally higher with unsecured personal loans compared to secured personal loans, you can still find loans that offer low rates. Peer-to-peer lenders, for example, offer rates on unsecured personal loans that are on par with most secured loans.

How does an unsecured personal loan work?

Unsecured personal loans generally let you borrow from $1,000 to $100,000 without needing to use an asset, like a car or property, as security. You can use the loan for any worthwhile purpose, and repay the loan over an agreed term, generally one to seven years, plus interest.

While you can generally use the funds how you want, you may be asked to list why you are applying for it, and this will form part of the lender's decision.

You will also be offered either a fixed or variable interest rate, but will generally receive a higher rate than on a secured personal loan. You may also need to pay establishment fees, or ongoing fees, so be sure to check these before you apply. Some unsecured personal loans will also come with additional features, such as the ability to repay your loan early without penalty.

Why is the interest rate higher than a secured loan?

Interest rates on unsecured loans are higher for borrowers as the lender is taking on a higher risk. If your loan is secured, the lender can take ownership of the asset you've used for collateral to cover the cost of the loan. To safeguard themselves, lenders charge more interest on unsecured personal loans so they have more to fall back on should you fail to make your repayments.

How do you compare unsecured personal loans?

Comparing your unsecured personal loan options is an important part of finding the right loan for you. Here are some things to keep in mind when doing so:

  • Interest rate. Check whether the interest rate is fixed or variable and whether it's competitive. Unsecured personal loan rates generally range from 7.5% to 18%.
  • Minimum and maximum loan amounts. All lenders will set a minimum that you can borrow and the majority will have a maximum – these usually vary between $1,000 and $100,000. It's important to check that the amount you need is within the range offered by the lender.
  • Fees and charges. You can be charged up-front and ongoing fees with unsecured loans, so check what these are before you apply. You can look at the comparison rate to see an overall cost of the loan which includes these fees.
  • Additional features. Your loan may come with additional features that you might find convenient, such as online account management, a redraw facility to access additional repayments or discounts on additional products offered by the lender.

What to weigh up: The pros and cons of unsecured loans

  • No asset needed for security. When getting an unsecured loan, there’s no need to supply an asset as security. If you're purchasing an asset with your funds you won't have to risk it, and you also won't need to risk an asset you already own.
  • Flexible loan purpose. You can use the funds however you like. Once you're approved the funds will be transferred to you and you can use them to consolidate debt, purchase what you need to or to invest.
  • Easy application process. Applying for one of these loans is usually quite easy. The application can typically take place online if you can provide the appropriate documentation required. After the application, you can usually get a response in 60 seconds.
  • Can have higher fees. As there is no security with unsecured personal loans, the lender may charge higher fees to compensate. This may come in the form of an establishment fee or monthly fees.
  • Penalties for missed payments. Again, as there is no security asset on an unsecured loan, the lender can charge you high fees for late payments or even take legal action against you and take you to court if you default on the loan.
  • Higher interest rates due to no collateral being offered. As there is a higher risk involved from the lender, the interest rates are generally higher on unsecured loans. This is to cover the fact that there is no collateral involved with the loan.

Is there anything to avoid with unsecured personal loans?

  • Not being up-front about what you're using the funds for. When you apply for an unsecured personal loan you will need to tell the lender what you're applying for. Always be up-front with your lender about this, whether it be for business purposes or to consolidate debts.
  • Borrowing more than what you need. Use a personal loan repayment calculator to see how much your repayments will be and see if you'll be able to afford them on your current budget. Even if you're offered a larger loan, consider whether you should take it on. The loan will be your responsibility to repay.
  • Unlicensed lenders. Always make sure you are getting an unsecured personal loan from a licensed lender. All providers must be licensed with ASIC; you can search through the ASIC Professional Register to check this.
  • Loans with excessive costs. Make sure to compare loans to make sure you get a competitive offering. Don't just look at the interest rate either; make sure you check up-front and ongoing fees as well as the comparison rate to get an idea of the true cost of the loan.

How you can apply for an unsecured personal loan

If you think an unsecured personal loan is for you, all you need to do is use the finder.com.au comparison table to compare your unsecured loan options. After browsing through the table and finding a suitable loan, click the relevant link to go to the lender’s website and start the application process. Typically, to get an unsecured loan you'll need to meet a range of criteria set by the lenders.

  • You must be at least 18 years old.
  • You must also have a good credit rating and be able to provide proof that you can pay off the loan.
  • You may be asked to provide copies of your payslips, bank account statements and other credit contracts.
  • You'll also need to provide 100 points of ID.

What are my other options?

Not sure if an unsecured personal loan is right for you? It pays to do your research. Check out some other personal loan types that you could consider.

Frequently asked questions about unsecured loans

Can I get an unsecured personal loan for business purposes?

Some lenders may allow you to use the funds from an unsecured loan for business purposes, but others will not. You will need to confirm this with the lender before you apply.

How can I get a low rate unsecured loan?

While unsecured personal loans do generally come with higher rates than secured personal loans, you can still find a competitive low rate personal loan option. Compare your options using the table above and find a loan that meets your budget.

How long do I have to repay an unsecured loan?

Fixed rate unsecured personal loans tend to offer terms of between one and five years and variable rate unsecured personal loans tend to offer terms of between one and seven years.

I applied for an unsecured loan but the rate I received was different from the advertised rate. Why?

There are two reasons this might have happened: a lender may operate on a risk-based rate system where your rate is determined by the information in your application, or the lender approved you but found you to be a higher risk, so applied a higher rate to your account.

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Important Information*
Logo for Citi Personal Loan Plus
Citi Personal Loan Plus

You'll receive a variable rate between 8.99% p.a. and 17.99% p.a. (9.67% p.a. to 18.6% 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: The establishment fee will be waived if you apply before 30 September 2019.

Logo for ING Personal Loan
ING Personal Loan

You'll receive a fixed rate of 8.99% p.a.
Benefit from no ongoing fees, no early repayment fees and flexible loan terms on amounts up to $30,000.

Logo for NOW FINANCE Personal Loans
NOW FINANCE Personal Loans

You'll receive a fixed rate between 8.95% p.a. and 16.95% p.a. based on your risk profile
Apply for loans from $5,000 and get a dedicated loan manager. No security required.

Logo for Westpac Unsecured Personal Loan
Westpac Unsecured Personal Loan

You'll receive a fixed rate of 12.99% p.a.
Benefit from the security of a fixed rate with the flexibility of additional repayments. Existing Westpac customers may qualify for discounts.

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38 Responses

  1. Default Gravatar
    KarenNovember 13, 2018

    I am on a disability pension and want to pay off my credit card and Centrelink loans. Can you advise me of the best way to get a loan for $1000 please

    • Avatarfinder Customer Care
      JohnNovember 13, 2018Staff

      Hi Karen,

      Thank you for leaving a comment.

      You may click on this link to check on a panel of lenders who can assist users who wish to take out a loan on centrelink payments. 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

  2. Default Gravatar
    colleenSeptember 10, 2018

    Hi. I need a personal loan of 40k to pay off an existing loan and leave some to purchase a motorcycle. These sites are all just taking into consideration MY circumstances instead of the household income. My husband pays most things and I pay the existing loan and other insurance expenses etc. Who can I contact to get a loan which includes my household combined income?

    • Avatarfinder Customer Care
      JoshuaSeptember 12, 2018Staff

      Hi Colleen,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      I understand you’re looking for a lender that would consider your household income. Indeed, the majority of lenders would only assess your individual income primarily. However, we do have a page that lists lenders who provide joint application personal loans. Please go to this page.

      On that page, you will see a table that allows you to conveniently compare your options. You can compare according to loan amount, fees, term payment, and so on. Once you found the right one for you, click on the “Go to site” green button to learn more or initiate your application.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  3. Default Gravatar
    LilianJuly 12, 2018

    am a starter in businesses and and i need loan $ 2500 to enable have the working capital and set up, am citizen of Kenya.. please advise

    • Default Gravatar
      JoelJuly 13, 2018

      Hi Lilian,

      Thanks for leaving a question on finder.

      Unfortunately, the lenders featured on our website only caters to residents from the US, Australia, UK, Canada and New Zealand. You will have to check with your local lenders if you are not from those 5 countries I mentioned. Sorry about that.

      Cheers,
      Joel

  4. Default Gravatar
    LMApril 6, 2017

    Of all of CUA’s personal loans which ones can be used as an unsecured personal loan for ~$55000

    • Avatarfinder Customer Care
      HaroldApril 7, 2017Staff

      Hi LM,

      Thank you for you inquiry.

      Unfortunately, there is no available unsecured loan from CUA. You may want to try and review the options available here.

      I hope this information has helped.

      Cheers,
      Harold

  5. Default Gravatar
    FrankDecember 30, 2016

    Hello

    What will be the best loan option if I am looking at buying an overseas (Subcontinent) property. I am looking at around $150,000. I have a good paying job where I am making more than $10,000 pre-tax a month.

    • Avatarfinder Customer Care
      MayDecember 30, 2016Staff

      Hi Frank,

      Thanks for your question.

      If you’re looking for a personal loan, I’m afraid that these lenders featured on our site offer loans to Australian markets only and the maximum amount they can lend would be at $50K. Higher than that amount would generally be risky to most lenders. Usually, if you’re to purchase a property, the option you would have is to take a home loan, but again, the banks/lenders would only service the people in Australia and the properties would also be in the country.

      Regards,
      May

  6. Default Gravatar
    JanDecember 19, 2016

    Hi,My husband and I are considering buying a business. It is already quite lucrative and has been for some time. We are looking for $400,000.00 for 5 years unsecured. Could you tell us if there is anywhere we could apply? We would also like to make extra payments.

    • Avatarfinder Customer Care
      DeeDecember 19, 2016Staff

      Hi Jan,

      Thanks for reaching out.

      If you are looking to apply for a personal loan, please note that most lenders offer a maximum loan amount of less than $100,000. You may want to consider a business loan which generally has a higher limit. You can compare your business loan options here.

      Cheers,
      Anndy

  7. Default Gravatar
    Jacku01October 13, 2016

    I need 25,000 to build a deck on a new house we’ve just built.
    Over 3 years, can I pay off early or make extra payments?
    I can easily repay in less than 3 years, just want to make sure all is ok.

    • Avatarfinder Customer Care
      ElizabethOctober 14, 2016Staff

      Hi Jacku01,

      This depends on the lender you apply with. Usually you can make extra repayments and repay early on a variable rate loan, but again, this will depend on the lender. You can click on the names of the loans above to see a review page, where you’ll find a list of fees so you can see if extra repayments are allowed on the loan you’re considering.

      Hope this helps,

      Elizabeth

  8. Default Gravatar
    EshaAugust 23, 2016

    Hi,looking for unsecured Personal loan of $50k,asset & funds cost only $10k, so is it possible that my loan approved, as u meet the other criteria’s..

    • Avatarfinder Customer Care
      ElizabethAugust 24, 2016Staff

      Hi Esha,

      You can compare your unsecured personal loan options on the page above. Each lender will have different eligibility criteria, which you can check on the review page by clicking on the name of the loan. The review page will also list the maximum loan amount able to be borrowed with the loan, but keep in mind how much you can borrow depends on your individual financial situation and how much you can afford.

      I hope this helps,

      Elizabeth

  9. Default Gravatar
    simoneAugust 9, 2016

    Looking for personal loan of $40k to provide for home loan deposit. When home loan is funded personal loan will be paid out

    • Avatarfinder Customer Care
      ElizabethAugust 11, 2016Staff

      Hi Simone,

      You can compare your personal loan options on the page above, however keep in mind you’ll need to advise the purpose of your loan when you apply. As it’s to fund your home loan deposit lenders may be hesitant as it’s a risk. You can check the eligibility criteria for each loan by clicking through to the review pages and click “Go to Site” when you’re ready to apply. If you’re unsure of your eligibility, talking to the lender directly is a good place to start.

      Hope this helps,

      Elizabeth

  10. Default Gravatar
    Phil1984June 29, 2016

    Good Afternoon,

    I have two personal loans at the moment, both used to purchase business equipment (still at startup stage) we have 33k over the both at the moment and are looking to borrow at least 40-50k to cover our last high interest loan and a bit of cash to get the rest of the business off the ground. We would need to do this unsecured as we are at 80% on our house after renos.

    any advice would be appreciated.

    • Avatarfinder Customer Care
      ElizabethJune 30, 2016Staff

      Hi Phil1984,

      Your personal loan options are outlined on the page above. However with two out already you may have trouble being approved for a third. If it’s for business purposes you can find out a few of your business loan options on this page. You can browse through the lenders on the main page as well as on the sidebar as there are several different loan options available, from line of credit loans to lump sum payments. Some lenders require your business to be in operation for a certain amount of time but others will offer you financing at the startup phase. I can’t recommend a specific lender to you but you can compare your options on the page.

      I hope this information helps,

      Elizabeth

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