Couple applying for a loan

What is a personal loan?

Find out exactly what a personal loan is, the different types that are available and how to find the right loan to get to where you want to be.

If you’re looking to make a big purchase, a number of small purchases or even to consolidate existing debt, you might wonder if a personal loan is the right choice for you. What sort of personal loan should you apply for? Secured or unsecured, fixed or variable rate?

There are many options to consider no matter what you’re looking to finance or how much you need to borrow. Our guide below will explain exactly what a personal loan is, what options there are and how you can apply.

What is a personal loan?

A personal loan is a type of credit that helps you finance a personal purchase. Terms are typically for between one and seven years and come as a secured or unsecured loan. Personal loans start from as little as $1,000 and can reach over $100,000. These loans are available from banks, credit unions, building societies and standalone lenders.

Comparison of Personal Loan Products

Rates last updated December 15th, 2018
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Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Harmoney Unsecured Personal Loan
From 6.99% (fixed)
7.69%
$5,000
3 to 5 years
$0
$500 (Upfront fee)
You'll receive a fixed rate between 6.99% p.a. and 28.69% p.a. based on your risk profile.
Apply for a loan up to $70,000 and repay your loan over 3 or 5 years terms.
Citi Personal Loan Plus
From 8.99% (variable)
9.96%
$5,000
3 to 5 years
$10
$199
You'll receive a variable rate between 8.99% p.a. and 17.99% p.a. (9.96% p.a. to 18.91% 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.
ANZ Fixed Rate Personal Loan
12.45% (fixed)
13.32%
$5,000
1 to 7 years
$10
$150
You'll receive a fixed rate of 12.45% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.
RateSetter Unsecured Personal Loan - 3yr Fixed
From 8.11% (fixed)
8.71%
$2,001
0.5 to 5 years
$0
$89
You'll receive a fixed rate from 8.11% 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.
Latitude Personal Loan (Unsecured)
From 13.99% (fixed)
15.19%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
You'll receive a fixed rate between 13.99% p.a. and 29.99% p.a. based on your risk profile
Apply for what you need from $3,000 and use it for a range of purposes. Flexible repayments options.
HSBC Personal Loan
From 8.5% (fixed)
9.06%
$5,000
1 to 5 years
$5
$150
You'll receive a fixed rate between 8.5% p.a. and 16.99% p.a. based on your risk profile
An unsecured personal loan with a tailored, fixed rate where you can make additional and early repayments without penalty.
ING Personal Loan
8.99% (fixed)
9.13%
$5,000
2 to 5 years
$0
$100
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.
Westpac Unsecured Personal Loan
12.99% (fixed)
14.14%
$4,000
1 to 7 years
$12
$0
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. Note: $250 establishment fee waived if you apply before 20 December 2018.
Latitude Low Rate Personal Loan (Unsecured)
10.99% (fixed)
12.21%
$20,000
2 to 7 years
$13
$250
You'll receive a fixed rate of 10.99% p.a.
A secured or unsecured loan available to homeowners with a large minimum borrowing amount of $20,000. Benefit from flexible repayments and fast approval.
Pepper Money Unsecured Fixed Rate Personal Loan
From 9.99% (fixed)
9.99%
$5,000
1 to 7 years
$0
$0
You'll receive a fixed rate between 9.99% p.a. and 27.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no monthly or application fees.
NAB Personal Loan Unsecured Fixed
Headline rate 13.49% (fixed)
14.36%
$5,000
1 to 7 years
$10
$150
You'll receive a fixed rate between 11.49% p.a. and 18.99% p.a. based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years.
SocietyOne Unsecured Personal Loan
From 7.5% (fixed)
9.51%
$5,000
2 to 5 years
$0
3% (of loan amount)
You'll receive a fixed rate between 7.5% p.a. and 19.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
NOW FINANCE Personal Loans
From 8.95% (fixed)
10.56%
$5,000
1.5 to 7 years
$13
$495 (Based on $10,000)
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.
Australian Military Bank Fixed Rate Personal Loan
From 7.93% (fixed)
8.77%
$1,000
1 to 5 years
$10
from $100 to $500
You'll receive a fixed rate between 7.93% p.a. and 18.87% p.a. based on your risk profile
An unsecured loan with a low minimum borrowing amount and flexible repayment options.
CUA Unsecured Fixed Rate Personal Loan
11.99% (fixed)
12.25%
$5,000
1 to 7 years
$0
$175
You'll receive a fixed rate of 11.99% p.a.
An unsecured loan from $5,000 with no monthly or establishment fees and flexible repayments.
CUA Discount Fixed Personal Loan (Loans over $30,000)
10.99% (fixed)
11.25%
$30,000
1 to 7 years
$0
$175
You'll receive a discounted fixed rate of 10.99% p.a.
Receive a discounted rate for borrowing over $30,000 and benefit from features such as no monthly fees and flexible repayments.
St.George Unsecured Personal Loan - Fixed Rate
From 12.99% (fixed)
14.06%
$2,000
1 to 5 years
$12
$0
You'll receive a fixed rate between 12.99% p.a. and 19.99% p.a. based on your risk profile
A low minimum borrowing amount of $2,000 to fund a range of purposes. Note: $195 establishment fee waived if you apply before 20 December 2018.
RACQ Bank Unsecured Personal Loan
12.95% (variable)
13.25%
$3,000
5 years
$0
$200
You'll receive a variable rate of 12.95% p.a.
A low minimum borrowing amount of $3,000 that you can use for a range of purposes. Benefit from member discounts and flexible repayments. Only available to QLD residents
MyState Bank Unsecured Personal Loan
12.99% (variable)
16.42%
$3,000
1 to 7 years
$10
$200
You'll receive a variable rate of 12.99% p.a.
Apply for up to $50,000 and benefit from features such as fast approval, free online redraws and no penalties for early repayment.
ANZ Variable Rate Personal Loan
15.99% (variable)
16.84%
$5,000
1 to 7 years
$10
$150
You'll receive a variable rate of 15.99% p.a.
A flexible loan with amounts starting $5,000 that offers flexible repayments and a redraw facility.
CUA Unsecured Variable Personal Loan
11.89% (variable)
12.15%
$5,000
1 to 7 years
$0
$175
You'll receive a variable rate of 11.89% p.a.
Borrow from $5,000 with the option for flexible repayments and no monthly fees.
NAB Personal Loan Unsecured Variable Rate
Headline rate 12.69% (variable)
13.56%
$5,000
1 to 7 years
$10
$150
You'll receive a variable rate based on your risk profile. The headline rate is 12.69% p.a.
An unsecured loan up to $55,000 you can use for a range of purposes. Benefit from fee-free additional repayments and a redraw facility.
CUA Discount Variable Personal Loan (Loans over $30,000)
10.89% (variable)
11.15%
$30,000
1 to 7 years
$0
$175
You'll receive a discounted variable rate of 10.89% p.a.
Borrow over $30,000 and receive a discounted interest rate. No monthly fees and a redraw facility also available.
Australian Military Bank Variable Rate Personal Loan
From 7.88% (variable)
8.72%
$1,000
1 to 7 years
$10
from $100 to $500
You'll receive a variable rate between 7.88% p.a. and 18.82% p.a. based on your risk profile
An unsecured loan with flexible repayment options and a low minimum borrowing amount.
Pepper Money Unsecured Variable Personal Loan
From 9.99% (variable)
9.99%
$5,000
1 to 7 years
$0
$0
You'll receive a variable rate between 9.99% p.a. and 27.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Make extra repayments and repay early at any time.

Compare up to 4 providers

What can you use a personal loan for?

Personal loans can help you in a variety of different situations:

The types of personal loans that are available

There are a number of personal loans available in the Australian market. Here are some of the options to consider:

  • Fixed rate personal loans.
    The interest on a fixed rate loan will not fluctuate during the term, which is typically between one and five years. You can usually find secured and unsecured fixed rate loans.
  • Variable rate personal loans.
    Available for a longer term (up to seven years) than its fixed rate counterpart, the interest rate can change with this type of loan. You can also find secured and unsecured options with a variable rate loan, and you may find less restrictive repayment options, such as the ability to repay the loan early without penalty.
  • Bad credit personal loans.
    If your credit history isn’t perfect, you may still be able to get a loan. You can consider small loans to cover budget shortfalls before payday or larger loans to purchase cars or even go on holiday. Keep in mind the interest rate and fees are likely to be higher, and you’ll need to take a close look at the eligibility criteria before you apply.
  • Car loans.
    If you’re looking to purchase a car for personal or business use, there are a number of loans available. You may be able to get a lower interest rate if you’re willing to secure your car against the loan. You can also consider an unsecured loan. Depending on your employment situation, you can opt for a novated lease and make repayments out of your pre-tax salary. Self-employed people can also consider chattel mortgages and car hire purchases.
  • Overdrafts.
    Ongoing personal finance is also available in the form of a personal overdraft attached to your transaction account. A personal overdraft account lets you draw over the balance available in your account up to a certain limit.
  • Short term loans.
    If you have bad credit, on a lower income, work part time or receive Centrelink payments, you can consider a payday loan. These loans are available for smaller amounts, usually up to $2,000 and typically need to be repaid within about 60 days.

“How can I get a personal loan?”

Once you’ve found the right personal loan for your needs and financial situation, it’s time to apply. Here’s what you need to know to submit your application and be approved.

  • Check if you’re eligible.
    The eligibility criteria given by lenders is usually the minimum they will accept, so you must meet the minimum age, income and employment requirements. The lender may also require you to have good credit or to finance a particular purchase (a new car as opposed to an older car if you are getting a car loan, for example). If you do not meet one or more of the criteria, you are probably not eligible for the loan.
  • Confirm the loan is right for you.
    Can you apply for the amount of money you need? Will you receive your loan in time? Will you be offered terms, fees and rates that meet your budget?
  • Find out what documents you need.
    The majority of lenders let you submit your documents and complete the entire loan application online. You may need digital copies of your identification, employment and financial documents to send to the lender to verify the information you provide in your application.
  • Submit your application and wait for approval.
    If you submit your application online, you can usually receive a response quite quickly. Some lenders will tell you within a few minutes if you’ve been approved, while others may take a few days or weeks to process your application.

Some more questions you may have about personal loans

How do I repay a personal loan?

Repayment options differ between lenders. You usually have the choice of making repayments via direct debit, electronic funds transfer, phone banking, Internet banking or over-the-counter at a branch.

How much time will I have to repay my loan?

You will usually have between one and five years for a fixed rate personal loan. Terms extend to seven years with a variable rate personal loan. If you’re opting for a payday loan, you will be offered terms between 16 days and one year.

Can I repay my loan early?

This depends on the loan. You can usually repay a variable rate loan early. Fees may apply if you want to repay a fixed rate loan early.

Is it better to have a fixed rate or variable rate loan?

It depends on the loan you need and your individual situation. A fixed rate loan will guarantee you a certain rate for a specific amount of time – you know what your repayments will be no matter what happens in the market. The downside of fixed rate loans is that they come with more restrictions. For example, you’ll normally be charged a fee to pay back the loan early or make additional repayments.

Variable rate loans give you more flexibility and you can take them out for a longer period – up to seven years. You can generally repay the loan early without penalty. However, you may find your repayments fluctuate with the market, which may or may not be favourable.

I want to buy a car. Should I get a secured loan?

Using your car to guarantee the loan could result in a lower interest rate, and it could also help you get your application across the line. However, if you default on your loan, the lender may take the car to cover the loss.

Can I finance any car with a car loan?

There will be restrictions on what kind of car you can buy. You can generally find two types of car loans – a new car loan or a used car loan. New car loans generally require your vehicle to be less than two years old and bought from a dealership or private sale. There may also be age restrictions on a used car loan. For instance, the car may need to be less than nine years old or may need to be of a certain value.

Can I make extra repayments?

You can usually make extra repayments, but you will be charged fees if you have a fixed rate loan.

What fees can I be charged?

You can be charged for making extra repayments, paying out your loan early, late payments, direct debit dishonour fees (by your lender and your bank), annual fees, monthly fees, application fees, among others. Check the total list of fees and charges that come with your loan before you apply.

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Personal Loan Offers

Important Information*
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 28.69% p.a. based on your risk profile.
Apply for a loan up to $70,000 and repay your loan over 3 or 5 years terms.

Citi Personal Loan Plus

You'll receive a variable rate between 8.99% p.a. and 17.99% p.a. (9.96% p.a. to 18.91% 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.

ANZ Fixed Rate Personal Loan

You'll receive a fixed rate of 12.45% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

RateSetter Unsecured Personal Loan - 3yr Fixed

You'll receive a fixed rate from 8.11% 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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