Our Pick Of The Best Personal Loans For Australians

Here are seven personal loans we’ve found that could be worth looking into. We’ve tried to identify trusted, low rate offers—but this isn’t an exhaustive list and you should do your own research and carefully read any quotes and terms and conditions before committing to a personal loan product. We have also included a mixture of secured, unsecured as well as broad (personal) and specific (car) loans. You can read more about car loans in our pick of the best car loans guide. We have decided not to rank each provider with a star rating as personal loans are highly personalised to the borrower and his or her credit history, making it difficult to rank one product above the other.

Note: as we have not ranked each provider, lenders are listed below in order from the lowest starting interest rate to the highest. If two lenders offer the same starting rate, they are ordered alphabetically.

Note: The below list represents a selection of our top category picks, as chosen by Forbes Advisor Australia’s editors and journalists. The information provided is purely factual and is not intended to imply any recommendation, opinion, or advice about a financial product. Not every product or provider in the marketplace has been reviewed, and the list below is not intended to be exhaustive nor replace your own research or independent financial advice. For more information on how Forbes Advisor ranks and reviews products, including how we identified our top category picks, read the methodology selection below.

FEATURED PARTNER OFFER

Harmoney Fixed Rate Personal Loan

Interest rate

Fixed rate of between 5.76% to 24.03%

Loan amount

$2,000 to $70,000.

Fees

Establishment fee of $275 for loans under $5,000, and $575 for loans over $5,000.

Learn More

On Harmoney's Secure Website

Interest rate

Fixed rate of between 5.76% to 24.03%

Loan amount

$2,000 to $70,000.

Fees

Establishment fee of $275 for loans under $5,000, and $575 for loans over $5,000.

Why We Picked It

Provided you’ve got good credit and can get financed at the low end of Harmoney’s fixed interest-rate range, you could lock-in one of the lowest rates around and pay no fees apart from the establishment fee. These fees nudge the comparison rate up to 6.55%, which is still competitive.

There are no monthly account-fees or early repayment fees, however, there is a dishonour fee of $15 if your repayment doesn’t go through.

Features

Weekly, fortnightly or monthly repayment options. Loan terms of three, five or seven years.

FEATURED PARTNER OFFER

Westpac Fixed Rate Secured Car Loan

Interest rate

Fixed rate of between 5.99% to 12.99% per annum

Lowest rate for EVs/Hybrid cars

Loan amount

$10,000 to $100,000.

Fees

Establishment fee of $250; Monthly account fee of $12.

Interest rate

Fixed rate of between 5.99% to 12.99% per annum

Lowest rate for EVs/Hybrid cars

Loan amount

$10,000 to $100,000.

Fees

Establishment fee of $250; Monthly account fee of $12.

Why We Picked It

Of the big four banks, Westpac’s dedicated and secured personal car loan offers the best rate, and it’s competitive against other lenders, too. While the lowest possible rate of 5.99% p.a. is for EVs, petrol car loans receive a rate range of between 6.49% p.a. and 12.99% p.a.

Around half of Westpac’s customers receive a rate of 8.49% p.a. or lower.

When using the loan to buy a plug-in EV, the bank currently has a bonus offer where you’ll receive a voucher for up to 1,250 kWh of free charging. There are fees to be aware of, including a $250 establishment fee, monthly account fee of $12; missed payments fee of $15; bank cheques cost $10; and paying the loan off in less than two years if loan term is longer than two years will incur a fee of $175.

Features

Weekly, fortnightly or monthly repayment options. Maximum loan term of seven years.

FEATURED PARTNER OFFER

Loans.com.au Variable New Car Loan (Secured)

Interest rate

Variable rate of 6.24%

Loan amount

$5,000 to $150,000.

Fees

$400 application fee. Monthly account fee of $8.

Interest rate

Variable rate of 6.24%

Loan amount

$5,000 to $150,000.

Fees

$400 application fee. Monthly account fee of $8.

Why We Picked It

Potentially a great flexible and secured option if you’re a homeowner (required for security) and plan to borrow a considerable sum for a new car that will take you at least three years to pay off—to avoid Loans.com.au’s hefty early termination fee. The rate is low, but it’s variable (and therefore, subject to change) and there are some fees for early repayment: $700 if it’s within the first two years, and $500 in subsequent years, with the exception of the last year.

Features

Weekly, fortnightly or monthly repayment options. Minimum loan term of three years, and maximum loan term of seven years. You can make extra payments and redraw up to $5,000 per day.

FEATURED PARTNER OFFER

OurMoneyMarket Unsecured Fixed Rate Personal Loan

Interest rate

Fixed rate from 6.57% to 18.99%

Loan amount

$5,000 to $75,000.

Fees

Establishment fee is between 1.50% to 6% based on loan amount

Learn More

On OurMoneyMarket's Secure Website

Interest rate

Fixed rate from 6.57% to 18.99%

Loan amount

$5,000 to $75,000.

Fees

Establishment fee is between 1.50% to 6% based on loan amount

Why We Picked It

OMM’s personal loan offers good value if you have an above-average credit score and can snag an interest rate on the lower end of its range. An efficient online application process means you can access funds fast.

Minimal fees—provided you stay on top of repayments—also makes this an attractive option. There is an establishment fee calculated as a percentage of your loan amount—between 1.50% to 6% with a minimum of $250. There are no account fees or early repayment fees, but there is a late repayment fee of $35 and a payment dishonour fee of $25.

Features

Weekly, fortnightly or monthly repayment options. Loan terms of one to seven years.

FEATURED PARTNER OFFER

Plenti Fixed Rate Unsecured Personal Loan

Interest rate

Fixed rate of between 6.57% to 24.09%

Loan amount

$5,000 to $50,000

Fees

Undisclosed one-off fee at application

Interest rate

Fixed rate of between 6.57% to 24.09%

Loan amount

$5,000 to $50,000

Fees

Undisclosed one-off fee at application

Why We Picked It

Based on its customer reviews, Plenti is a well-regarded lender, with a decent interest rate for people with a healthy credit score. The lender has a low salary threshold for people looking to apply for a personal loan—you need to be able to show you earn at least $25,000 annually and this includes self-employed people, provided you’ve been working for yourself for at least 12 months.

An undisclosed one-off fee applies at application, but there are no monthly fees or early repayment fees, and borrowers can make extra repayments or pay off the loan early without penalty.

Features

Weekly or fortnightly repayment schedule. Ability to make extra repayments. Loan term of between one to seven years.

FEATURED PARTNER OFFER

ING Fixed Rate Personal Loan (Unsecured)

Interest rate

Fixed rate of between 6.89% to 18.99%

Loan amount

$5,000 to $60,000

Fees

Establishment fee of $150

Interest rate

Fixed rate of between 6.89% to 18.99%

Loan amount

$5,000 to $60,000

Fees

Establishment fee of $150

Why We Picked It

A decent interest rate range from a well-liked, well-known bank makes this product one to consider. It’s cost-effective if you want certainty about repayments yet the flexibility to add extra cash and potentially pay off the loan early without any charge. To be eligible, ING requires you earn at least $36,000 a year (before tax). Note, this loan isn’t available to those who are self-employed.

There is an establishment fee of $150 and a late payment fee of $20, but no monthly account fees.

Features

Ability to make extra repayments. Loan term of between two to seven years.

FEATURED PARTNER OFFER

NAB Variable Rate Personal Loan (Unsecured)

Interest rate

Variable rate of 8.49% to 20.49%

Loan amount

$5,000 to $55,000

Fees

Application fee of $150

Interest rate

Variable rate of 8.49% to 20.49%

Loan amount

$5,000 to $55,000

Fees

Application fee of $150

Why We Picked It

It’s not the cheapest loan on offer, but NAB’s variable rate personal loans comes with the assurance of a major bank’s backing. With the variable rate option, you can get ahead on your repayments, and then redraw extra cash as needed. The fees are minimal, plus there’s no penalty for paying off the loan sooner.

Features

Loan term of one to seven years. Weekly, fortnightly or monthly repayments. Redraw is available.

When selecting our favourite personal loans, we looked at a range of criteria:

• For customers with an excellent credit score, what rate can they expect?
• How much can customers borrow?
• What are the fees, including application, monthly or early repayment fees?
• Could the customer pay off the loan early and not be hit with a fee?
• What is the loan-term, that being the time-frame in which the customer needs to pay off the loan?
• Are there options for selecting payment frequency, such as weekly, fortnightly, or monthly?
• What is the income threshold for eligibility?
• Is there a redraw facility should you need to access your funds?
• What do consumer online reviews of the lender indicate?

Personal loans are a type of credit you can access from banks and other lenders, but they differ from credit cards, Buy Now Pay Later (BNPL) services, payday loans, and lines of credit. The main difference is the size of the loan, the interest rate, and the repayment obligations.

Compared to other types of credit, a personal loan:

• Is typically used for larger lump sum expenditures, with a fixed loan size between $4,000 and $50,000, which is paid off in around one to seven years. BNPL has an upper limit of $2,000, and payday loans range from $2,000 to $5,000 (and coming with shockingly high interest rates). A line of credit is similar to a credit card—you apply for a credit limit and can access funds as and when needed over time—provided you keep paying down the balance.
• Usually attracts a lower interest rate—starting in the single digits—whereas credit cards and a line of credit often attract rates in the 10 % to 25% range. As mentioned, interest rates on payday loans are notoriously high (rates are capped at 48% per annum) and fees associated with “interest-free” BNPL can be exceptionally steep, especially if you’re late on repayments.
• Comes with a structured repayment schedule where you must pay back a set amount every week, fortnight or month to avoid going into arrears. You may be charged for making extra repayments or even for paying your loan off too quickly.

Personal loans are less flexible than revolving credit, but they also give you a longer time to pay off your purchase at what is generally a more affordable interest rate than alternatives.

Types of Personal Loans

Just like a home loan, you’ll pay interest on the repayments you make on your personal loan amount, and you’ll need to prove you can afford it when you apply.

Personal loans can have either a fixed or a variable interest rate, and be secured or unsecured.

• Fixed: Locks-in a specific interest rate for the duration of the loan, so you know exactly what your repayments will be. Some fixed loans include a fee for paying off your loan earlier than the expected term, sometimes called an exit fee—check the conditions offered by the lender if you’re hoping to make extra repayments.
• Variable: Means your interest rate may change, such as when the central bank cash rate rises, which means your repayments could increase or decrease over the term of the loan. Variable loans are often more flexible in terms of allowing extra payments and redraws.
• Secured: You can potentially get a better interest rate by putting up a car or home as collateral in case you default on your loan repayments; this can include the car you’re using the loan to buy. For secured loans, you’ll usually be able to use any asset of equivalent value as security.
• Unsecured: No need to offer any other asset as security. Because the risk to the lender is higher, unsecured loans often have a higher interest rate than a secured option. Unsecured loans can be easier to apply for, since you won’t need to provide proof of a suitable asset to be used as security.

Another option for securing a personal loan—especially for young people with no credit history, or people with a poor credit score—is a guarantor personal loan. That’s when you ask a parent or a friend to become a guarantor, which means they commit (and risk) their asset as security on your behalf or become liable for repayments if you default.

Related: Our pick of the best car loans

A competitive interest rate and low fees are the top things to look for in a personal loan. Ensuring you minimise your repayments helps you avoid overextending yourself financially. Before you apply, read the product terms and conditions provided.

Personal loan features to examine closely include:

• Interest rate: Is the rate reasonable and within what you can afford to repay? Many lenders have what’s marketed as a “personalised rate”: they’ll advertise a interest rate range, but the actual rate offered will depend on your individual financial situation and credit score. Use their provided calculators and rate estimate tools during your research to see who’ll offer you the best deal.
• Loan term and repayment frequency: Repaying your loan over a longer timeframe makes each payment smaller and more manageable, but it also means you’ll pay more interest. Work out the right balance between repayment size and eliminating your debt quickly. A frequent repayment cycle, such as weekly, also reduces your total interest payable.
• Application and account fees: Personal loans can include establishment fees, monthly account-keeping fees, late payment, redraw and exit/prepayment fees. The establishment fee is sometimes added to the loan amount, rather than being an up-front cost.
• Extra repayments and redraws: If you’re keen to funnel extra cash into your loan so you can pay it down faster, check that the loan enables extra repayments at no cost. Some products will also include a redraw facility, so you can withdraw extra repayments if you need cash in a pinch. There may be a daily limit on this amount.

A note on comparison rates advertised on lenders’ websites: this interest rate is based on an example personal loan amount of $30,000 and a term of five years, and also doesn’t factor in all fees. If you’re borrowing more or less than that, and planning to pay it off over a different timeframe—it’s not relevant. Always do your own sums based on your specific parameters.

Think Carefully About the Size of Your Loan

It’s also critical in the current cost-of-living crisis to not borrow more than you can comfortably afford to repay within a reasonable timeframe, especially if you choose a variable rate where the interest portion can rise.

Legally, no lender should be giving you a loan if they don’t think you can genuinely afford to repay it—but being able to scrape up a minimum repayment amount isn’t the same as being in a financially healthy position. The danger lies in being trapped into a lengthy repayment period where you end up paying an exorbitant amount of interest.

For instance, based on one lender’s online calculator, if you borrowed $5,000 at a 7% fixed interest rate:

• You’d pay an extra $1,328 in interest if you pay the minimum amount weekly over a seven-year term.
• You’d pay an extra $362 in interest if you pay the minimum amount weekly over a two-year term.

Do You Need Personal Loan Insurance?

You might be offered a product called protection insurance on top of your loan. It’s primarily designed to help you cover repayments in case you lose your job or get sick.

The Australian Government’t MoneySmart website calls consumer credit insurance “poor value” as many claims against this kind of insurance are denied or withdrawn. So carefully consider whether you really need it.

Fake loan scams are a real thing, so one benefit of applying for a personal loan through a recognisable bank is that you know they’re legitimate lending institutions. Getting a loan through your current bank might also be faster if you can skip pre-qualifying identity checks and apply from within your existing online account or by contacting your personal banker.

Some well-known lenders have stopped offering personal loans, including Bank of Queensland and Suncorp. However, there are a variety of smaller online lenders that may offer attractive interest rates—and there’s no reason to ignore them, provided they’re reputable. Online lenders may be your most viable option if you’ve got bad credit. Keep in mind that online lender brands may actually be backed by a different credit provider or bank, so do your research first.

Some Tips For Finding Reputable Lenders:

• Don’t be swayed by unsolicited emails, texts, banner ads, or phone calls. Start with your own online search and look for official lender websites. Good signs include a com.au address and a padlock symbol in the URL that indicates it’s a secure site, but this is not fool-proof as scammers have become increasingly sophisticated in mimicking legitimate businesses. If unsure, phone the lender to make sure what you’re being offered in legitinate.
• Check the lender’s site for an Australian credit licence number and then verify its real by looking it up via the Australian Securities and Investments Commissioner (ASIC) professional registers site.

Most lenders have online application processes and promise fast turnaround times—either same-day approval or within one to two days.

To apply for a personal loan in Australia, you’ll typically need:

• To be 18 years of age and over. You’ll need to provide proof of your identity like a driver’s licence.
• To be a permanent resident of Australia, or a migrant with a visa type accepted by the lender.
• Have a verifiable income source—you’ll need to show payslips, bank statements, or statements from the government.

Another big factor affecting your eligibility for a personal loan is your credit score, which is determined by:

• The duration of your credit history e.g., do you have a five to 10-year track record of paying off credit?;
• Your past reliability in making bill and loan repayments on time and in full; and
• How often you’ve relied on credit e.g., multiple applications for credit products in a short timeframe looks suspicious.

Not sure how healthy your credit is? You can request a free credit report that gives you an idea of your rating.

You can still get loans with a short or bad credit history, but you may have to shop around less prominent lenders and accept a higher interest rate. If you don’t need to make the purchase right away, you might be better off paying down your existing debts and improving your financial position before you apply.