More Aussies are taking out personal loans, says ABS

Man is working on some home renovations that are funded by a personal loan

New research from the Australian Bureau of Statistics (ABS) shows there’s been a steady increase in the number of new loan commitments.

The ABS tracks loans taken out for housing, business and personal financing.

Among these loans, the percentage of Aussies taking out a personal fixed term loan rose by 6.10% in August, after a rise of 6.0% in July. 

So it seems that many are keen on a personal loan to help pay for a range of expenses, which typically include upgrades around the home, such as a new fence, pool, patio or even a room extension.

If you’re considering a personal loan to make your reno dream come true, there are a few things to keep in mind:

  • The amount you can borrow will depend on some factors. For example, having a good credit score means that you’ll likely be able to take out more money. 
  • If you’re concerned about your credit history, there are ways to improve your credit score
  • Expect to pay interest on top of the original loan amount, which will vary between providers.
  • If you’re able to make extra repayments, you can potentially reduce the interest payable and pay your loan off quicker.
  • If you take out a fixed rate loan, your interest rate is locked in for the duration of the loan.
  • If you get a secured personal loan, the loan is guaranteed by another asset, which can be repossessed if you fail to make repayments.

If you don’t know whether the loan amount you’re thinking of borrowing will work with your budget, crunch the numbers using a loan repayments calculator to get an estimate of the total sum you’ll have to pay back. 

As a personal loan is a financial commitment, it’s worth reviewing all of your options so you can find the one that meets your needs.

Compare personal loan options

The search for a personal loan can be overwhelming with so many options in the market. So why not check out some of the best personal loans that our experts at Mozo have tracked this month, or start comparing some options below!

Personal loans comparison table - last updated 23 May 2024

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

    Compare
    Details
  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    14.95% p.a.to 27.95% p.a.
    29.30% p.a.to 42.8% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.

    Compare
    Details
  • Debt Consolidation Loan

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 19.39% p.a.based on $30,000
    over 5 years

    Competitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details

* 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.