major purchase

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

9.99%

Fixed

11.22%

Latitude Financial Services

$968

36 months

2 years to 7 years

3.25

/ 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

8.50%

Fixed

9.36%

Wisr

$947

36 months

3 years

3.61

/ 5
More details

15.99%

Variable

16.84%

ANZ

$1055

36 months

1 year to 7 years

2.64

/ 5
More details

12.69%

Variable

13.56%

NAB

$1006

36 months

1 year to 7 years

3.12

/ 5
More details

12.69%

Fixed

13.56%

NAB

$1006

36 months

1 year to 7 years

3.05

/ 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

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

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

Sometimes in life you need or want something here and now and you simply can’t wait until you’ve saved up enough money to buy it. That’s when a personal loan might be the right option for you, but only if you know you have the financial means to pay it off on time.

Big purchases like a new swimming pool, a boat, renovations, paying for a holiday or wedding or even cosmetic surgery are the types of things you could take a personal loan out for.

What should I look for in a personal loan for a major purchase?

It pays to compare the costs and features of personal loans carefully, to find one that meets your needs and also has the best value.

Things to compare carefully are:

  • Interest Rates (fixed or variable)
  • Fees (upfront fees + ongoing fees)
  • Repayment options (can you make extra repayments and pay the loan off early?)
  • Features (like redraw facility)
  • Loan term (between 1-10 years)

At RateCity.com.au you can compare personal loan rates and options from dozens of Australian lenders side by side to find one with the features and benefits that suit your financial situation.

How much can I borrow on a personal loan?

Personal loan lenders in Australia offer loans of anywhere from $1,000 to $300,000.

However, it’s unusual for a lender to make a personal loan above $100,000. Your personal financial situation will also determine how much a lender is willing to lend, as each borrower is assessed on a case-by-case basis.

How long will I have to pay off a personal loan?

Type of personal loan Average length of loan What to consider
Shorter term personal loan Under 12 months

· Can be paid off more quickly

· Monthly repayments may be higher
Typical personal loan 3 - 5 years

· Lower interest rate than a credit card

· May cost you in fees and/or interest
Longer term personal loan 7 – 10 years

· More affordable monthly repayments

· Pay more interest over time

Who is eligible to take out a personal loan for a major purchase?

Every lender and its own list of criteria but generally you will need to prove that:

  • You are an Australian resident/citizen
  • You are at least 18 years old
  • You are employed or can prove you have regular income
  • You have a good credit history

Some lenders in Australia will still consider customers who have a bad credit history.

How can I take out a personal loan for a major purchase?

Most lenders in Australia allow customers to make applications online or over the phone. If the lender has a branch, you can also apply in person.

You will most likely need the following documents:

  • Mobile phone number and email address
  • Driver’s license or Medicare Card or passport
  • Bank statements covering the last 90 days

What benefits does a personal loan have over a credit card when making a major purchase?

The interest rates on personal loans are usually lower than the interest rates on credit cards. If you’re planning to make a major purchase, but know you will not have the cash needed to pay it off by the end of the month or even several months, putting it on your credit card could be a more expensive option than taking out a personal loan.

What’s the difference between a secured and unsecured personal loan?

Generally, secured personal loans have lower interest rates than unsecured personal loans. This is because you put up an asset, like a car, a property or some other valuable, as collateral for a secured loan.

Need more information about personal loans for a major purchase?

RateCity.com.au has a personal loans guide filled with helpful tips that may help you in making a decision when purchasing a personal loan.

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 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.

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.

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.

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.

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.

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 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.

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

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. >

Can I get guaranteed approval for a bad credit personal loan?

Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application. 

It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit, because there’s a higher likelihood that the personal loan will be repaid. 

So a borrower with good credit is more likely to have a loan approved and to get that approval faster, while a borrower with bad credit is less likely to have a loan approved and to get that approval slower.

Can I get a bad credit personal loan with a guarantor?

Selected lenders will consider personal loan application from a borrower with bad credit if the borrower has a family member with good credit willing to guarantee the loan (a guarantor).

If the borrower fails to pay back their personal loan, it will be their guarantor’s responsibility to cover the costs.

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.

Personal Loans Frequently Asked Questions

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.

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).

When was comprehensive credit reporting introduced?

Comprehensive credit reporting was introduced to make credit reports fairer and more accurate. Under the previous system, credit providers only saw negative information about potential borrowers. Now, they get to see both positive and negative information, which means that credit providers can see if a borrower’s negative credit behaviour is typical or a one-off.

Do $4000 loans have no credit checks?

Many medium amount loans for $4000 have no credit checks and are instead assessed based on your current ability to repay the loan, rather than by looking at your credit history. While these loans can appear attractive to bad credit borrowers, it’s important to remember that they often have high fees and can prove less affordable than other options.

Personal loans for $4000 are more likely to have longer loan terms and will require a credit check as part of the application process. Bad credit borrowers may see their $4000 loan applications declined or have to pay higher interest rates than good credit borrowers.

How are personal loans regulated?

Personal lenders are regulated by ASIC (the Australian Securities & Investments Commission) and must follow responsible lending rules. That means they can’t lend money without making “reasonable inquiries” about a borrower’s financial situation and ensuring the loan is “not unsuitable” for them.