Australia’s Best Personal Loans for July 2022

woman waiting for her plane at the airport for a holiday she book with a personal loan

It’s July. As we hit the end of the financial year, it’s the perfect time of year to consider your finances and plan for new projects for the remainder of the year. Additionally, with international travel open again and renovation costs up, there are many reasons for wanting to take out a personal loan and just as many options when it comes to choosing a loan and lender in Australia. That’s why it’s so important to be confident you’re getting the best personal loan deal you can.

With over 70 lenders to choose from, there isn’t going to be a single best personal loan for every borrower but there are definitely some key features that all great personal loans have in common. These are low interest rates, minimal fees and the flexibility to make extra repayments.

Many personal loan lenders now use risk-based pricing, and this means that the interest rate of your loan is based on your credit profile. Interest rates on personal loans in the Mozo database start as low as 3.74% p.a. (3.74% p.a. comparison rate*) but go to comparison rates over 20%, and to get the best rate one of the key things you’ll need is for your credit score to be in top shape.

Mozo’s money experts track personal loans from Australia’s lenders from big banks like ANZ, NAB, Westpac and the Commonwealth Bank, through to online specialist lenders, all of which are regulated by the Australian Prudential Regulation Authority (APRA).

There are many ways to define which personal loans are the best and ultimately the answer will depend on what’s most important to you and your financial circumstances. We have pulled together information about a range of loan options, some of which have won Mozo awards, and others the Mozo team has chosen to highlight great deals available right now. 

Best personal loans for July 2022

Expert picks: Mozo Experts Choice Award-winning best personal loans

Mozo Experts Choice Awards Badge

Each year, our team of data analysts run a comprehensive assessment of every personal loan in our database to determine which ones offer Australians the best value for their money as part of our Mozo Experts Choice Awards^. Our experts compared 338 personal loans from 82 lenders, with only the best in each category making the final cut.

Below is a selection of winners from the recently announced 2022 awards, which present great value for the year ahead. If you want to learn more about how we selected the best of the best personal loans, check out the Mozo Personal Loan Awards page.

Best Unsecured Personal Loan

NOW Finance No Fee Unsecured Personal Loan
  • No fees
  • Fixed interest rates starting at 5.95% p.a. (5.95% p.a comparison rate*)
  • Borrow from $5,000 to $50,000

Why it won: With fixed interest rates starting at 5.95% p.a. (5.95% p.a. comparison*), online lender Now Finance is a top choice for borrowers with excellent credit looking to borrow between $5,000 to $50,000. You won’t be up from any upfront application or ongoing fees either. There is a maximum loan term of 7 years, but if you’re borrowing less than $8,000, the maximum term is 3 years. You can also pay out the loan early without incurring a fee. This loan also has a choice between weekly and fortnightly payments.

Best Used Car Loan

OurMoneyMarket car loan
  • Fixed interest rates from 5.35% p.a. (5.65% p.a. comparison rate*)
  • No monthly account keeping fees
  • Free extra repayments

Why it won: OurMoneyMarket’s car loan can help cover the cost of your used car from $2,001 to $75,000. It comes with fixed interest rates starting at a low 5.35% p.a. (5.65% p.a. comparison rate*) and offers loan terms from 1 to 7 years. In the first year of the loan, you'll be able to access that low rate no matter your credit score. After that time, your rate may change to reflect your credit rating via a tiered system. There are zero monthly account keeping fees, zero exit fees and zero early repayment penalties, and you can choose to pay it off either weekly, fortnightly or monthly. Keep in mind, an establishment fee starting at $250 is added to the principal amount and paid over the loan term. Just remember: this fee could increase based on your OurMoneyMarket loan grade and the total loan amount. While the loan offers free extra repayments, there is no redraw facility, so you won’t have access to that money later.

Best Green Car Loan

loans.com.au Clean Green Car Loan
  • Low variable rates from 3.64% p.a. (4.18% p.a. comparison rate*)
  • Special reduced rates for homeowners (conditions apply)
  • Borrow from $5,000 to $100,000

Why it won: loans.com.au impressed our judges with its competitive pricing and straightforward green car loan. With low fixed rates from 4.89% p.a. (5.44% p.a. comparison rate*), this loan rewards customers with excellent credit. loans.com.au also offers special lower rates starting at just 3.64% p.a. (4.18% p.a. comparison rate*) for homeowners (conditions apply). You can borrow $5000 to $100,000 with loan terms between 3-5 years. There is the choice of making weekly, fortnightly and monthly repayments as well as the option to make extra repayments whenever you like, but there is a $700 early repayment fee. Keep in mind, there is no redraw facility, so you can't get access to that extra cash.  Additionally, there is a $400 application fee.

Other standout personal loan winners

The providers listed above weren’t the only ones to win big in this round of Mozo Experts Choice Awards for Personal Loans. Some other major winners:

  • Illawarra Credit Union was given the Best New Loan Product award for their Green Eco Loan.
  • Australian Mutual Bank was the only provider to take out Green Personal Loan title, winning with their Green Loan.

Looking for an award-winning car loan? Check out our best car loans in Australia page for more top offers.

For the full list of this year’s winners and to find out more about how we select the best personal loans for the awards, read the Mozo Experts Choice Personal Loan Awards methodology report.

Customer favourites: Best personal loans from Mozo People’s Choice Award winners

Mozo People's Choice Awards Badge

The Mozo People’s Choice Awards are a national annual survey of what real Australians think of their banks and lenders. Providers are rated on a range of important factors, including customer satisfaction, customer service, friendliness, trust and whether they’d recommend them to others. Here’s a look at some of our winners from the 2022 awards, and the personal loan options they offer.

Heritage Bank Standard Personal Loan (Unsecured)
  • Choice between variable or fixed rate
  • Borrow from $5,000 to $25,000
  • Redraw facility
Find out more

What you need to know: Heritage Bank won awards for Excellent Customer Service and Highly trusted in the 2022 Mozo People’s Choice Awards. This loan offers you the flexibility to select a fixed interest rate from 7.99% p.a. (8.62% p.a. comparison rate*) or a variable interest rate from 11.99% p.a. (12.61% p.a. comparison rate*), based on your credit rating and financial situation. You can borrow between $5000 and $25,000 with terms up to seven years. Plus, you can choose to make your repayments weekly, fortnightly or monthly. While this loan allows you to make extra payments, keep in mind that you might incur an additional penalty fee for doing so. It does have a redraw facility though. The Heritage Bank Standard Personal Loan (Unsecured) charges a range of fees, including a $200 application fee and a $5 service fee.

ING Unsecured Personal Loan
  • Fixed interest rates from 6.99% p.a. (7.20% p.a comparison rate*)
  • Borrow between $5,000 to $60,000
  • Extra repayments allowed and no completion fee
Find out more

What you need to know: ING won awards for Outstanding Customer Satisfaction and Excellent Customer Service in the 2022 People’s Choice Awards. The interest rate on the ING Unsecured Personal Loan is fixed from 6.99% (7.20% comparison*) to 10.99% p.a. (11.21% comparison*), based on a credit assessment, and has terms from 2 to 7 years. You can borrow $5000-$60,000, and it has flexible monthly or fortnightly repayments. You can make extra repayments and pay out the loan early without penalty, but there is no redraw facility. Additionally, there is a $150 loan establishment fee.

Mozo Editor's Pick for Personal Loans

Editor’s pick of the month:  best personal loan deals on Mozo in June

Here’s a selection of some of the top deals available right now from our partners as selected by our editors. These are options that we think are worth highlighting for people wanting a great personal loan. You can also visit our personal loan hub where you can do a full database search, read guides or more detailed product reviews.

Special low rate offer

Our Money Market Low Rate Personal Loan
  • Rates from 5.85% (6.47% comparison*) for excellent credit
  • Free redraw facility and extra repayments
  • No service fee

Key details: OMM offers competitive rates, which start at 5.85% (6.47% comparison*) for borrowers with excellent credit. Available for loan amounts from $2001 to $75,000 and loan terms of between 1 - 7 years, it has a lot of flexibility and no monthly fees. Though, keep in mind that there is a $250 establishment fee. You can pay out the loan early without penalty, have access to a free redraw and choose between weekly, monthly or fortnightly repayments are other benefits.

Fast-approval and funding

Wisr Unsecured Personal Loan
  • Rates from 6.95% (7.78% comparison*) for excellent credit
  • 2 minute personal rate estimate
  • Establishment fee waived for eligible Mozo customers (conditions apply)

Key details: The simple online application means that, according to Wisr, you can get a response within minutes and funds within 48 hours following approval. Interest rates start at 6.45% (7.27% comparison*) for borrowers with excellent credit. Loan terms range from 3 - 5 year terms with the maximum borrowed amount of $30,000. There is a $595 establishment fee, but this fee may be waived for eligible customers, borrowing between $5,000 and $30,000, who visit Wisr via the Mozo ‘go to site’ link . Extra repayments are allowed and there is no penalty for paying out the loan early, but there is no redraw facility.

Peer-to-peer lending

Harmoney Unsecured Personal Loan
  • Rates from 5.35% p.a. (6.14% p.a. comparison rate*)
  • Loan top up feature
  • No ongoing fees

Key details: The Harmoney unsecured personal loan isn’t your average loan, as it’s funded by investors who invest money via its online marketplace - otherwise known as peers - rather than the provider itself. Fixed rates start from only 5.35% p.a. (6.14% p.a. comparison rate*), but can go up to 19.09% p.a. (19.99% p.a. comparison rate*) depending on your credit history. Harmoney offers $2,000 to $70,000 loans with 3, 5 or 7 year terms. You can pay weekly, fortnightly or monthly and there are no admin fees. Just keep in mind, there is a $575 application fee (but you’re only charged for it after the loan is successfully funded). And if your loan amount is under $5,000, you'll only pay a $200 application fee.

Green home improvements

Handypay Green Loan
  • Rates from a low 6.99% p.a. (7.62% comparison*)
  • Borrow between $2,001 to $75,000
  • Loans 1 to 7 years

Key details: Handypay is a specialist home improvement plan provider offering loans for borrowers with excellent credit which you can use for a range of green home initiatives such as solar panels, batteries, rainwater tanks or energy efficient renovations. ​​Rates start from an introductory rate of 6.99% p.a. (7.62% comparison*), based on loan amount and term length. There is a $250 application fee but the loan doesn’t have any ongoing or monthly account fees. Borrow up to $75,000 and choose a loan term between 1 to 7 years.

Most common FAQs about personal loans

What can I use a personal loan for?

There are many reasons why you might want to get a personal loan. Some of the common reasons for getting a loan include buying a car, consolidating debt, renovating your home or getting married. But there really is no limit to what you could use a personal loan for, so long as you’re prepared to pay the borrowed money back (with interest).

Just be aware that some personal loans will come with some conditions where they need to be used for a specific purpose such as a green loan where you’ll have to show proof of the purchase.

What features do the best personal loans have?

Money-saving features are what you should look for when you are doing a personal loan comparison. With personal loans these include:

  • A low interest rate: The lower your interest rate, the smaller your repayments. To get the lowest rate personal loan you’ll generally need to have an excellent credit rating. Learn more about what this means by reading our guide on how to improve your credit score.
  • Low fees: There are many lenders these days that have no fees so it is worth shopping around. There are many avoidable fees as well such as late payment fees so if you do get approved for a loan, be sure to set up an automatic or direct debit to be sure you meet due dates for your bills.
  • Extra repayments: if you’re in a situation where you have extra cash to put towards your loan it’s a good idea to do it so that you can get out of debt sooner. This smart habit will also have a positive impact on your credit history which will help if you need to borrow money again in the future.
Which bank has the best personal loan rates?

If by best, you mean best interest rate, there isn’t a simple answer to this question. The reason is because in Australia many banks and online lenders use risk-based pricing for personal loans so the interest rate that you will get will be personalised based on your credit history. This is why you’ll see an interest rate range for each personal loan listed on our site. To find out the interest rate you are likely to get if you apply for a loan try Mozo’s Rate Matcher tool.

What’s best, a fixed or variable rate personal loan?

The type of interest rate that will be best for you will depend on your financial circumstances. Fixed interest rates are great for people who like to know exactly how much they have to pay each month. Variable interest rates can move over the loan term so they could go down, but they could also go up so it is best to consider this when you are deciding on the loan term.

What’s the best loan term for a personal loan?

The best loan term for you will depend on a number of factors such as how much you want to borrow and your income. If you select a loan term that is too short, you could get into financial stress and miss payments. But take out a loan over a long period of time and the more money you’ll have to pay in interest and fees.

The good news is that most lenders allow you to pay out loans early without penalty so it is best to select a loan term that you can comfortably meet repayments and whenever possible make more than the minimum monthly payment so that you can pay it back as fast as possible.

How can I get the best chance of getting a loan approved?

One of the best ways to ensure getting approved for a personal loan is to make sure you meet the eligibility criteria before applying. Generally, these can include:

  • Be at least 18 years of age
    • Hold Australian citizenship or an eligible visa and reside in Australia.
    • Meet minimum income requirements
    • Pass a credit check

    In order to put yourself in the best position to be approved, you should also prepare for your credit history to be closely analysed by lenders. You’ll want to have your credit score in tip-top shape in order to put your best foot forward.

    Of course, every lender also has their own set of criteria, so to give yourself the best chance of being approved, be sure to double-check that you meet the requirements of the specific loan you are applying for.

    What is a secured loan?

    A secured loan is a personal loan that is secured against an asset so that if you were unable to repay the loan, the lender could claim against that asset. Secured car loans are a common type of loan for new car loans in Australia and generally these loans will have lower interest rates than unsecured ones.

    Are these loans best for me?

    We have provided some of our editor’s picks and information about products which have got Mozo’s seal of approval through the Mozo awards. Ultimately, you will need to consider your priorities and financial needs to identify which options are best for you. Be sure to read the information provided on a product issuer’s website before making a decision.

    * WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

    ^See information about the Mozo Experts Choice Personal Loan Awards

    Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

    While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.