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Unsecured personal loans in Australia

Getting an unsecured personal loan is straight-forward. Apply online, receive your funds, and repay the loan without having to put up collateral.

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By

Rebecca Pike

Edited by

Richard Whitten

Updated

Fact checked
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Updated regularly
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
NOW Finance No Fee Unsecured Personal Loan
Finder award winnerFixed18 Months - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
6.75%
to 26.95%
Comp. Rate (p.a.)
6.75%
to 26.95%
Application Fee
$0
Monthly Fee
$0
Monthly Repayment
$615.26
Go to siteMore Info
OurMoneyMarket Personal Loan
Finder award winnerFixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
Harmoney Unsecured Personal Loan
Finder award winnerFixed3 - 7 Years $2,000 - $70,000
Interest Rate (p.a.)
5.76%
to 24.03%
Comp. Rate (p.a.)
6.55%
to 24.98%
Application Fee
$275 - $575
Monthly Fee
$0
Monthly Repayment
$623.70
Go to siteMore Info
Latitude Variable Rate Personal Loan
Variable2 - 7 Years $5,000 - $70,000
Interest Rate (p.a.)
9.49%
to 29.99%
Comp. Rate (p.a.)
10.37%
to 30.69%
Application Fee
$0
Monthly Fee
$13
Monthly Repayment
$653.57
Go to siteMore Info
Special Finder offer: $395 establishment fee waived for approved personal loan applications submitted through Finder. Latitude may withdraw offer at any time. T&Cs apply.
NAB Personal Loan Unsecured Fixed
Fixed1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
6.99%
to 20.49%
Comp. Rate (p.a.)
8.05%
to 21.49%
Application Fee
$250
Monthly Fee
$10
Monthly Repayment
$635.17
Go to siteMore Info
ING Personal Loan
Finder award winnerFixed2 - 7 Years $5,000 - $60,000
Interest Rate (p.a.)
6.89%
to 18.99%
Comp. Rate (p.a.)
7.10%
to 19.23%
Application Fee
$150
Monthly Fee
$0
Monthly Repayment
$621.16
Go to siteMore Info
NAB Personal Loan Unsecured Variable Rate
Variable1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
6.99%
to 20.49%
Comp. Rate (p.a.)
8.05%
to 21.49%
Application Fee
$250
Monthly Fee
$10
Monthly Repayment
$635.17
Go to siteMore Info
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How to compare unsecured personal loans

  • Look at the interest rate. A lower interest rate makes the loan cheaper. Borrowers with Excellent credit scores can get the lowest unsecured rates.
  • Factor in the cost of fees. Some lenders charge hefty fees. For smaller loan amounts of a few thousand dollars, even a small ongoing fee can end up costing you more than a lower-fee loan with a higher interest rate.
  • Choose your loan term and loan amount carefully. The more you borrow the more expensive the loan is. Longer loan terms mean you end up paying more interest. But shorter loan terms make your monthly repayments higher.
  • Check if the loan allows extra repayments. Most loans let you make extra repayments or pay off the loan early without charging fees. It's a useful feature. 47% of Australians in Finder's Consumer Sentiment Tracker say it's the most important feature on a personal loan.
  • Make sure you're eligible for the loan. Check you meet all the eligibility criteria before submitting an application. You'll need to be over 18, have proof of your income and personal identification documents at a minimum.

What is an unsecured personal loan?

With an unsecured personal loan you're borrowing money without putting up an asset (like a car) as security.

If you can't repay the loan there's nothing your lender can repossess and sell to recover your debt. Unsecured personal loans have slightly higher interest rates to compensate for the higher risk the lender is taking. They are typically easier to get than secured loans and rates can still be competitive.

With an unsecured loan you can borrow anywhere between $2,001 and $100,000 and terms range from 1 to 7 years.

The pros and cons of unsecured personal loans

Pros
  • Fast access to credit. Lenders don't have to assess an asset when you apply for an unsecured loan, so the approval process is faster.
  • Flexible loan options. These loans have flexible loan terms, loan amounts and often let you make extra repayments easily.
  • No assets at risk. You don't have to put a car or other asset up as collateral, so there's no risk of repossession, if you can't repay the loan.
Cons
  • Higher interest rates. While still competitive, the lowest personal loan rates in Australia are almost always going to be secured loans.
  • Risk of debt and credit score impact. Just because you haven't put up an asset doesn't mean failure to repay the loan won't hurt you. A default will harm your credit score and your lender can still pursue you for the debt in court.

What can I use an unsecured personal loan for?

Unsecured personal loans aren't tied to specific purposes in the way a home loan or a secured car loan is. They're quite flexible, and most lenders don't impose any restrictions on how you use the funds.

You can use an unsecured personal loan to:

Personal loan rate update: May 2024

  • Lowest unsecured personal loan rate: Harmoney Unsecured Personal Loan: 5.76% (comparison rate 6.55%).
  • Average unsecured personal loan rate in Finder's database: 10.78% p.a.
  • The average Australian with a personal loan borrows $7,328 with a 3 year term.
Richard Whitten
Market update by Richard Whitten – Finder money editor

Are there any risks with small or large unsecured loans?

Any money you borrow comes with risk if you can't repay it. The best way to minimise any risks that come a loan is to:

  1. Borrow only what you can afford to repay.
  2. Approaching a reputable, licensed lender (all lenders on Finder are licensed and reputable).
  3. Look at the comparison rate. It factors in the cost of all fees and the loan's interest rate.

The risks of taking out a large personal loan

Borrowing a lot of money is riskier than a small amount, generally speaking. A 5% interest on a small loan won't cost you as much in interest charges as the same rate on a much bigger loan.
Here's a simple example.

Loan ALoan B
Interest rate12%12%
Loan term3 years3 years
Loan amount$3,000$8,000
Total loan cost (loan plus interest)$3,588$9,566

These loans are otherwise identical, but the higher loan amount ends up costing the borrower more than $1,500 in interest. Whereas the smaller loan is just $588 of interest.

The risks of taking out a small personal loan

You might think that getting a very small unsecured personal loan is less risky. But if you want to borrow less than $2,000 you probably can't get a personal loan.

Borrowing under $2,000 means you're probably looking at a payday loan. These loans don't have standard interest charges, but come with hefty fees. The price of a small, fast unsecured loan can actually be much higher.

Do unsecured personal loans affect your credit score?

Applying for any loan impacts your credit score temporarily. That's why you should only apply for one product at a time and try to avoid getting your application rejected.

Aside from the initial impact of the application, taking out an unsecured personal loan won't necessarily hurt your credit score. If you make regular repayments and never miss one this will probably benefit your credit score.

Having multiple loans at the same time may hurt your credit score. And debts like credit cards or personal loans can have a bigger impact than something like a home loan.

Button link: Tips to improve your credit score

Who offers unsecured personal loans?

Unsecured personal loans are offered both by large, traditional banks such as NAB, and non-bank lenders like OMM or Harmoney. Non-banks are governed by the same regulations as banks, so both are safe and secure options for your borrowing needs.

The key difference between a bank and a non-bank is that non-banks hold a credit licence and not a banking licence. This means that they cannot provide some banking services, such as taking deposits. If you prefer to do all your banking in the same place, you may want to stick to the banks.

Typically, non-banks offer more competitive rates, with lower set-up and ongoing fees. However, they may have fewer loan options compared to traditional banks. Non-banks can also be more flexible and may provide better, personalised service when compared to traditional banks.

Frequently asked questions about unsecured personal loans

Why compare personal loans with Finder?

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We're independent

We are independently owned and have a mission to help Australians make better financial decisions. That means our opinions are our own and you can compare nearly every personal loan in Australia (and find a better deal).
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We're here to help

Since 2014, we've helped 300,000+ people find a personal loan by explaining your options simply. You don't need to give us any details to use our comparison. We're here to help you make a decision.

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42 Responses

    Default Gravatar
    LMApril 6, 2017

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

    Reply
      AvatarFinder
      HaroldApril 7, 2017Finder

      Hi LM,

      Thank you for you inquiry.

      Unfortunately, there is no available unsecured loan from CUA. Thankfully, there is a list of unsecured personal loans featured on this page. Please go ahead and check them. You might find the right one for you through that page.

      I hope this information has helped.

      Cheers,
      Harold

      Reply
    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.

    Reply
      AvatarFinder
      MayDecember 30, 2016Finder

      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

      Reply
    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.

    Reply
      AvatarFinder
      DeeDecember 19, 2016Finder

      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 that generally has a higher limit. You may also compare your business loan options featured on our website.

      Cheers,
      Anndy

      Reply
    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.

    Reply
      AvatarFinder
      ElizabethOctober 14, 2016Finder

      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

      Reply
    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..

    Reply
      AvatarFinder
      ElizabethAugust 24, 2016Finder

      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

      Reply
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