Personal loans with low interest rates can save you money, but it’s important to make sure you look at all the features of a loan and its limitations and decide if you need it before you apply. Even if it’s low interest, costs can mount over time. 

low interest

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8.50%

Fixed

9.36%

Wisr

$947

36 months

3 years

3.61

/ 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

5.75%

Variable up to 9.99%

6.47%

Symple Loans

$909

36 months

1 year to 7 years

4.33

/ 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

What types of low interest personal loans are available?

If you’re looking for a low interest personal loan, you need to understand how lenders assess your ability to repay the loan. Generally speaking, the lower the risk you represent to the lender, the lower the interest rate on your personal loan. There are a number of personal loans available on the market. Many are developed to solve a specific purpose, such as a car loan, a debt consolidation loan or a fast loan. It’s important to shop around the compare what’s on offer.

Loans with personalised rates 

If you have a great credit rating, and have evidence that you can meet repayments, you may be able to get a personalised low rate. You can do this by calling the lender directly, or by sending in income, identity and other relevant documents that prove your credibility as a borrower. It’s important to shop around and contact lenders directly to ask for the lowest interest rate possible. Compare the deals that you are offered. 

Secured personal loans 

One type of personal loan that is usually accompanied by a low interest rate is a personal loan that is secured by an asset. By securing a personal loan with an asset, you reduce the lender’s risk  because the lender can sell the asset to cover the outstanding cost if you default on your repayments. So such loans will typically feature lower interest rates than those on unsecured personal loans. 

How do you apply for a low interest personal loan? 

Low interest loans are typically only available to those who can prove they are low-risk applicants and can easily meet their repayments. Here’s how to do that:

  • Prove you can save: If you can prove to the lender that you have consistently saved over time, this may improve your chances. Lenders need to believe that you can meet the structured repayments that are part and parcel of a personal loan.
  • Prove consistent employment: If you have stayed with the same employer for more than 12 months, you may be seen as more reliable. Maintaining regular work is a good indicator that you will maintain the employment when repaying your loan.
  • Prove your income: If you are a full-time or permanent employee, proving standard income that covers your expenses, repayments and savings can be extremely beneficial to negotiate a lower rate.  Showing your lender tax returns with annual income from previous years can also help your application if you’re self-employed.

What documentation do you need for a low interest personal loan? 

To prove you can meet your personal loan repayments, and potentially score a lower interest rate than advertised, it helps to have the following documents:

  • PAYG slips if you are a full-time, part-time or casual employee 
  • Previous years’ tax returns or notices of assessment if you are self-employed 
  • Rental income receipts (if you currently own a rental property) 
  • A letter from your employer can help your application 
  • Bank statements, usually at least three months 
  • Superannuation statements, especially if you receive income from a self-managed super fund (SMSF) 
  • Any other documents that show you receive regular income

Documents that prove your identity 

  • Driver's license, passport or proof of age card 
  • Birth certificate or citizenship certificate 
  • Proof of Australian residency 
  • Medicare card 
  • Credit cards  
  • Concession or pension card 
  • Utility bills or bank statements
  • It can also help to provide the lender with any documents that prove your ownership of assets, especially those that provide you with additional income. 

Insider Tip:

Compare interest rates as well as fees and charges before you complete any applications. A rejected loan application will leave a negative mark on your credit rating, and could damage future applications for credit products. 

What other factors should you consider with a low interest personal loan?

Low interest rates keep your repayments low, but there are other factors to consider such as fees, flexibility and eligibility criteria.  

Check fees and charges 

If the interest rate is low, the bank may recoup their costs in other ways. Make sure before you apply for a low interest personal loan that you ask about all the fees involved, which could include, but are not limited to: 

  • Establishment fees 
  • Account keeping fees 
  • Early exit fees 
  • Late repayment fees  
  • Check the flexibility 

When you are offered a personal loan with a low interest rate, it may be less flexible than a personal loan with a higher interest rate. For example, the loan may limit extra repayments or paying the loan off early. Say, for instance, you received a tax return of over $2000 at the end of the financial year and you want to repay your loan with this money. You could be charged an early exit fee that covers the lender’s loss if you repay early.

If you would like more flexibility with your personal loan and the ability to repay extra, you may prefer a personal loan with a higher interest rates or a line of credit.

Check your eligibility 

Low interest personal loans often have strict eligibility criteria, as lenders will typically only offer low interest loans to very credible borrowers. Applying for a personal loan will impact your credit score negatively if you are rejected, so make sure you check if you are eligible before you apply. RateCity has a helpful tool to help you check your eligibility, called the Personal Loans Marketplace

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.

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.

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.

Are there low doc personal loans?

Self-employed borrowers may be eligible for low doc personal loans, which require less documentation in their application process than many other personal loan options.

It’s important to remember that though low doc personal loans may require less paperwork, you may need to provide additional security, or pay a higher interest rate.

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.

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.

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 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.

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.

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.

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 do credit scores have to do with personal loan interest rates?

There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to decide what interest rates to offer to potential borrowers.

If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate.

If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.

Are there any interest-free emergency loans?

The No Interest Loans Scheme (NILS) allows low income borrowers to take out no-interest loans for up to $1500 to purchase essential goods and services.

There are also similar low-interest loan schemes available to borrowers in financial hardship who are having a tough time getting finance approved.

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 documentation is needed for a self-employed personal loan?

Personal loans may require a borrower to provide proof of identity, proof of residence, details of any other outstanding loans (including credit cards), details of assets they own (e.g. savings, car, property), and proof of income.

While borrowers in full-time or part-time employment can often provide payslips and similar documents to prove their income, self-employed borrowers may need to provide other information, such as bank statements or tax returns, to demonstrate that their income can cover a loan’s repayments.

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.

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.