best

Sort By
Product
Advertised Rate
Comparison Rate*
Company
Monthly repayment
Loan term
Total repayments
Real Time Rating™
Go to site

8.50%

Fixed

9.36%

Wisr

$947

36 months

3 years

3.61

/ 5
More details

5.75%

Variable up to 9.99%

6.47%

Symple Loans

$909

36 months

1 year to 7 years

4.33

/ 5
More details

9.99%

Fixed

11.22%

Latitude Financial Services

$968

36 months

2 years to 7 years

3.25

/ 5
More details

12.69%

Fixed

13.56%

NAB

$1006

36 months

1 year to 7 years

3.05

/ 5
More details

12.45%

Fixed

13.32%

ANZ

$1003

36 months

1 year to 7 years

3.01

/ 5
More details

12.69%

Variable

13.56%

NAB

$1006

36 months

1 year to 7 years

3.12

/ 5
More details

15.99%

Variable

16.84%

ANZ

$1055

36 months

1 year to 7 years

2.64

/ 5
More details

4.94%

Variable

7.41%

Heritage Bank

$898

36 months

1 year to 10 years

4.56

/ 5
More details

5.60%

Variable

5.70%

Family First Credit Union

$907

36 months

0 year to 10 years

4.49

/ 5
More details

5.85%

Variable

6.70%

Holiday Coast Credit Union

$911

36 months

0 year to 10 years

4.20

/ 5
More details

6.49%

Fixed up to 8.79%

6.84%*

Plenti

$919

36 months

3 years to 5 years

4.25

/ 5
More details

7.79%

Fixed up to 10.49%

8.35%*

Plenti

$937

36 months

3 years to 5 years

3.96

/ 5
More details

8.00%

Fixed

8.21%

Our Money Market

$940

36 months

1 year to 7 years

3.77

/ 5
More details

8.99%

Fixed

9.13%

ING

$954

36 months

2 years to 5 years

3.67

/ 5
More details

9.00%

Variable

9.28%

Holiday Coast Credit Union

$954

36 months

0 year to 5 years

3.83

/ 5
More details

6.99%

Fixed up to 29.99%

7.69%

Harmoney

$926

36 months

3 years

3.95

/ 5
More details

10.89%

Variable

11.15%

CUA

$981

36 months

0.08333333333333333 year to 7 years

3.45

/ 5
More details

10.99%

Fixed

12.21%

Latitude Financial Services

$982

36 months

2 years to 7 years

3.08

/ 5
More details

11.50%

Fixed

12.38%

Wisr

$989

36 months

3 years

3.09

/ 5
More details

12.99%

Fixed

14.14%

Westpac

$1011

36 months

1 year to 7 years

2.81

/ 5
More details

12.99%

Fixed up to 28.99%

14.20%

Latitude Financial Services

$1011

36 months

2 years to 7 years

2.86

/ 5
More details

13.99%

Fixed up to 29.99%

15.19%

Latitude Financial Services

$1025

36 months

2 years to 7 years

2.69

/ 5
More details

14.00%

Variable

14.30%

Holiday Coast Credit Union

$1025

36 months

0 year to 5 years

2.96

/ 5
More details

Learn more about personal loans

How do you find the best personal loan?

When it comes to choosing financial products, the best one will always depend upon your situation. There is no standard ‘best’ product for everyone, but there are a few things you can do to choose the best one for you. 

Identify why you need a personal loan 

Before you begin researching the best personal loan for you, it’s important to think about what you need it for, why you need it and how you want to access the funds. A personal loan has a fixed term over which you will need to repay the debt in structured repayments. Interest will be charged on the debt depending on a variable or fixed interest rate. 

What do you need a personal loan for? 

Personal loans can be used to fund: 

  • Holidays 
  • Weddings 
  • Student loans 
  • IT Equipment 
  • Renovations 
  • Appliances 
  • Furniture 
  • Removals 
  • Visa Applications 
  • Debt consolidation, and much more. 

The funds for a personal loan are released all at once, so if you are a frivolous spender or undisciplined saver this may not be the best option for you. However, if you have a large purchase or debt that you need to pay off at once, then a personal loan could work for you. 

Tip

If you are indebted to multiple lenders, a debt consolidation could be the best option for you. By combining your loans into one personal loan, you could save you money on interest charged and manage your repayments more easily. 

Personal loans vs. line of credit and overdrafts

Standard personal loans differ from lines of credit and overdrafts in the way they are repaid. Personal loans provide all the funds at once, in a single sun, and have a fixed loan term. Line of credit loans and overdrafts however, are more flexible in how you borrow and withdraw your funds, up to a maximum loan amount. Instead of receiving the funds in a lump sum, you can access funds with lines of credit and overdrafts as you need it up to your credit limit. 

Is a line of credit a type of personal loan? 

A line of credit is a type of personal loan, where you can access money up to a maximum loan amount. You don’t need to reapply to withdraw money, and you're only charged interest on the amount you borrow. 

Is an overdraft a personal loan? 

Overdrafts can either come as part and parcel of a savings or transaction account that you have opened, or you can apply for one separately. An overdraft is not a personal loan as such, but shares some features with a personal loan. Overdrafts can be a simple way to access extra money, but you can be charged hefty fees for the convenience.  

Insider Tip

Similar to a credit card, line of credit loans and overdrafts can provide a flexible, ongoing source of funds. These loans may be better options for disciplined spenders, but if you’re looking to make larger repayments in a more structured manner, a standard personal loan may be best. 

Which type of personal loan is best?

Personal loans vary in a number of ways. However, the main differences are in how interest is charged and whether the loan is secured. 

Fixed vs variable rate personal loans 

  • Fixed interest rate: personal loans with fixed rates charge the same interest rate for the length of the loan. That means that you agree to pay a set amount of interest as part of the loan repayments each month. Regardless of whether your lender changes interest rates, your repayments will stay the same. This can be appealing as it keeps your expenses certain and  makes budgeting easier. However,  you could miss out on savings if your lender reduces their variable rates. 
  • Variable interest rate: personal loans with variable interest rates mean your repayments could change at any time. You could save money with a variable rate personal loan if there’s a rate cut, as your interest costs and repayments will fall. However, if your bank or lender raises their rates, you could be left out of pocket. 

Secured vs unsecured personal loans 

A secured loan has collateral as security on the loan, whereas an unsecured loan does not.  

  • Secured loans: with a secured personal loan, your financier will ask you to insure the loan using an asset that you own. This asset will be used to cover the personal loan amount if you default on your repayments.  
  • Unsecured loans: an unsecured loan is not secured by an asset, and so it represents a greater risk to your lender. With no insurance on your loan, they cannot recover their losses if you fail to meet your repayments. 

Lenders charge higher interest rates on unsecured personal loans in order to reduce the lender’s financial risk. These types of loans come with strict criteria, to ensure borrowers can meet their repayments. 

 

 

Insider Tip

If you're considering a variable rate personal loan and have a strict budget, it's wise to budget for a rate rise of up to 3 percentage points to ensure that you can afford repayments. 

How do you apply for a personal loan? 

Applying for a personal loan can be as simple as an online application. However, every loan application you are rejected from will negatively impact your credit score. That’s why it’s important to check a few things before you fill out any personal loan application form. 

What documentation do you need for your application? 

To get a personal loan, you will need to show your lender: 

  • Driver’s license or passport to prove your identity 
  • Bank statements or utility bills to prove your address 
  • Income statements or pay slips, to prove your income 
  • Bank or credit card statements to show your spending habits 
  • Recent tax returns or financial documents 
  • Details of current outstanding debt 

Make sure you can afford your repayments 

Personal loans have lower interest rates than other lending methods like credit cards. However, it’s important you check that you can afford the repayments. The RateCity personal loans marketplace was built with you in mind, to help you check affordability. 

Check both the interest rate and the comparison rate 

Shopping around and making personal loan comparisons is a key part of the process. There are dozens of loan providers in Australia, and you shouldn't assume your current bank will offer you the lowest  interest rate or the best deal.  

When you begin to compare the best personal loan for you, you need to check both the interest rate and the comparison rate. This combines a loan's advertised interest rate with its standard fees and charges, giving you a more accurate idea of its overall cost. Just watch out for any extra fees and charges that aren’t included in the comparison rate. You should ask a lender whether any of these apply.  

Check the fees and charges 

Just as with all financial loans, lenders charge a number of fees to ensure they reduce their financial risk. They are taking a risk by lending you a large sum of money, and as such they need to charge these to protect their investment. 

Personal loans can come with fees and charges that include: 

  • Starting fees 
  • Account keeping fees 
  • Early exit fees 
  • Administrative fees 
  • Late payment fees  
  • Redraw fees 

 

 

Insider Tip

When you’re comparing personal loans, look at ALL the associated fees and costs by reading the key facts and figures sheet for the product, and the product disclosure statement (PDS). Every loan is different, so you need to make sure you look at all fees and charges before signing on the dotted line.  

Frequently asked questions

Can you refinance a $5000 personal loan?

Many personal loans, much like home loans, can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent, without worrying about ending up out of pocket if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. They have higher interest rates than regular personal loans and are also harder to access.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan – however, the process is easier and faster than taking out a mortgage.

Loan sizes usually range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to pay extra onto your personal loan or medium amount loan could bring you benefits, such as reducing the total interest you’re charged on your loan, or clearing your debt ahead of schedule.

Check your loan’s terms and conditions before putting extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans – they also get loaned less money. Each lender has its own policies, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

How can I get a $3000 loan approved?

Personal loans and medium amount loans from responsible lenders don’t have guaranteed approval, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income (Centrelink payments may not count – so you should check with the lender prior to making an application).

What is an unsecured bad credit personal loan?

A bad credit personal loan is ‘unsecured’ when the borrower doesn’t offer up an asset (such as a car or jewellery) as collateral or security. Lenders charge higher interest rates on unsecured loans than secured loans.

Do student personal loans require security?

While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, with higher interest rates.

Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will guarantee the loan, taking on the financial responsibility if the borrower defaults.

What do single parents need for a personal loan application?

Much like applying for other personal loans, applying for personal loans for single parents will likely require the following:

  • Proof of identity
  • Proof of residence
  • Proof of income
  • Details of assets (e.g. car, home)
  • Details of liabilities (e.g. credit cards, other loans)
  • Loan amount
  • Loan term

How long does it take to get a student personal loan?

Completing an online personal loan application can often take anywhere from 10 minutes to 1 hour. Depending on your lender, processing your personal loan application may take anywhere between 1 and 24 hours. If your personal loan application is approved, you may receive the money in your bank account the following business day, or even the same day, in some cases.

Can unemployed single parents get personal loans?

It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments. If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan offers – consider contacting the lender before applying. >

What do single mothers need to apply for a personal loan?

Like other personal loan applicants, single mothers will likely need to provide a few documents to any potential lender, such as personal identification, bank statements (savings, loans, credit cards), proof of address, and proof of income (payslips, tax returns).

What are the pros and cons of personal loans?

The advantages of personal loans are that they’re easier to obtain than mortgages and usually have lower interest rates than credit cards.

One disadvantage with personal loans is that you have to go through a formal application process, unlike when you borrow money on your credit card. Another disadvantage is that you’ll be charged a higher interest rate than if you borrowed the money as part of a mortgage.

What are the pros and cons of debt consolidation?

In some instances, debt consolidation can help borrowers reduce their repayments or simplify them. For example, someone might take out a $7,000 personal loan at an interest rate of 8 per cent so they can repay a (different) $4,000 personal loan at 10 per cent and a $3,000 credit card loan at 15 per cent.

However, debt consolidation can backfire if the borrower spends the extra money instead of using it to repay the new loan.

Can I get an easy/instant personal loan?

Some lenders are able to approve applications over the internet and within minutes. However, there is a catch. People who take out easy/instant loans generally pay higher interest rates and are restricted to lower amounts than people who follow a traditional borrowing process.

How do I find out my credit rating/score?

Credit reporting bodies like Equifax, Dun & Bradstreet, Experian and the Tasmanian Collection Service will give you a free credit report once a year. You can also get a free report if you’ve been refused credit in the past 90 days.

Credit reporting bodies have up to 10 days to provide reports. If you want to access your report quickly, you’ll probably have to pay.

What is credit history?

Your credit history covers everything to do with applying for loans. It includes the number of loans you’ve applied for, the amounts you’ve borrowed and your record of meeting repayment schedules.

How do I know if I've got a bad credit history?

You can find out what your credit history is like by accessing what’s known as your credit rating or credit score.