Personal Loans Snapshot: April 2021

Personal Loans Snapshot: April 2021

Throughout April we’re seeing more and more Aussies starting to take out personal loans, particularly to fund home renovation plans.

In fact, according to the latest ABS Lending Indicators release, the value of new loan commitments for fixed-term personal lending saw a 0.2% increase in January, while the value of new loan commitments for ‘other purposes’ went up by 15.8%. The value of new loan commitments for road vehicles on the other hand saw a 3.3% drop.

Personal loan interest rate changes:

In regards to personal loan interest rates, we’ve seen a number of changes take place over the past month as well as some previous offers come to an end.

Interest rate cuts:

  • Alex has recently cut the starting rate on the Alex Fixed Unsecured Personal Loan by 146 basis points to 5.49% p.a. (5.49% p.a. comparison rate*). Additionally, Alex is waiving the $295 establishment fee until at least 3 May 2021.
  • Greater Bank has just reduced two fixed rates: Its New Car Loan down by 51 basis points to 4.98% p.a. (5.36% p.a. comparison rate*) and its Secured Personal Loan down 50 basis points to 5.99% p.a. (6.37% p.a. comparison rate*).
  • NAB cut the minimum Unsecured Personal Loan rate by 3%, bringing it down to 6.99% p.a. (7.91% p.a. comparison rate*).
  • Westpac has slashed 200 basis points off its Westpac Personal Loan (Fixed, Unsecured) at the end of March, bringing it down to a competitive 3-year fixed rate of 9.99% p.a. (11.16% p.a. comparison rate*) available until 18 May 2021.

Interest rate increases:

  • Heritage Bank increased the fixed rates on its Heritage Bank Car Loan by 110 basis points to 5.99% p.a. (6.63% p.a. comparison rate*) and its Standard Personal Loan by 100 basis points, bringing it to 8.99% p.a. (9.62% p.a. comparison rate*).

Ended offers:

  • The Commonwealth Bank’s temporary rate reduction for the fixed rate on its Commonwealth Bank Unsecured Personal Loan has now ended with the minimum rate now 200bp higher at 11.50% p.a. (12.38% p.a. comparison rate*).

Other notable changes:

Earlier this year the Commonwealth Bank announced a new secured Green Loan with a 0.99% p.a. fixed interest rate. At this stage, however, the loan is only available via expression of interest for CommBank home loan customers (owner-occupiers and investors) who are keen to install solar panels, battery packs, electric vehicle chargers or other eco-friendly technology in their home.

Last month we also saw St George slash 150bp off of its fixed-rate Unsecured Personal Loan, bringing it down to 9.99% p.a. (11.08% p.a. comparison rate*) for a limited time (discount ends on 15 April 2021). The variable interest rate for the same loan however sits at 12.99% p.a. (14.06% p.a. comparison rate*).

Which lenders stand out?

Yet again Australian Military Bank, Credit Union SA and Transport Mutual Credit Union continue to offer the lowest personal loan interest rates in the Mozo database, so it seems that the smaller mutual banks and credit unions are still where it’s at if you’re after a more competitive rate.

How about big-name lenders?

Once again, the big bank personal loan interest rates continue to sit higher than most competitor lenders. For example, the Commonwealth Bank’s lowest personal loan interest rate currently sits just below 12%, a huge jump from the lowest interest rate in the Mozo database which sits at 3.65% p.a.

Variable rate personal loans:

Out of the big four banks, the Commonwealth Bank once again takes the cake for having the lowest variable rate, offering 11.50% p.a. (12.38% p.a. comparison rate*) on its Commonwealth Bank Unsecured Variable Personal Loan.

On the other end of the scale, despite having dropped its rates by 3 basis points at the end of September 2020, the ANZ Unsecured Variable Personal Loan still has the highest big bank variable rate, with a 12.99% p.a. variable interest rate (13.86% p.a. comparison rate*).

Fixed rate personal loans:

When it comes to big bank fixed rates, Westpac officially has the lowest rate in the Mozo database after shaving 200 basis points off of its Westpac Personal Loan (Fixed, Unsecured) at the end of March, bringing it down to a competitive 3-year fixed rate of 9.99% p.a. (11.16% p.a. comparison rate*) available until 18 May 2021.

Once again, the highest big bank personal loan fixed interest rate was the NAB Personal Loan (Fixed, Unsecured) which offered a 12.69% p.a. 3-year fixed rate (13.56% p.a. comparison rate*).

Personal loan rates of note in April:

Compare Personal Loans today - rates updated daily

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    No Fee Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.95% p.a.
    5.95% p.a.to 17.95% p.a.based on $30,000
    over 5 years
    Go to site
    Details
  • Hot DealMozo exclusive! A discounted rate of 5.40% p.a. for the first 12 months (comparison rate 6.36%) will apply for all eligible applicants
    placeholder
    Mozo Experts Choice 2021
    Special Offer Low Rate Personal Loan

    Fixed, Unsecured, 12 Month Introductory Rate

    interest rate
    comparison rate
    Monthly repayment
    5.40% p.a.
    6.36% p.a.based on $30,000
    over 5 years
    Go to site
    Details
  • placeholder
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.to 19.95% p.a.
    6.76% p.a.to 20.26% p.a.based on $30,000
    over 5 years
    Go to site
    Details
  • placeholder
    Personal Loan

    interest rate
    comparison rate
    Monthly repayment
    6.25% p.a.to 19.95% p.a.
    7.64% p.a.to 21.35% p.a.based on $30,000
    over 5 years
    Go to site
    Details

Keen to check out some more options? Then head on over to the personal loans comparison tool where you can compare loads of personal loans right now.

* 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.