Personal loan interest rates: September 2021
There were a handful of changes to personal loan interest rates in August, mostly to unsecured loans but one within the secured loan space. One lender now offers some of the lowest rates in the Mozo database when it comes to green and home improvement loans.
For unsecured personal loans, the majority of lenders that made adjustments cut their rates, however two lenders increased. Notably, in the variable rate space Community First Credit Union changed its pricing on its Green Loan and Home Improvement Loan options. Despite previously having different rates for loans up to 5 years and loans up to 10 years, Community First Credit Union introduced a low 3.99% p.a. (4.99 p.a. comparison rate*) across all loan terms, the lowest green personal loan and renovation-only loan rates on the Mozo database. This is 200 basis points less than the previous rate for terms up to 5 years and a significant 400 basis points less than the rate that was for terms up to 10 years. Illawarra Credit Union also cut its Green Unsecured Personal Loan Package rate by 200 basis points to 3.99% p.a. (5.19% p.a. comparison rate*) the second lowest green personal loan rate on the Mozo database.
When it comes to fixed unsecured personal loans, renovation loan lender Handypay cut its Green Loan rate for the second month in a row by an additional 50 basis points on top of the 10 basis points in July. This left the rate at 5.79% p.a. (6.14% p.a. comparison rate*), the fifth lowest unsecured personal loan fixed rate on the Mozo database. Easy Street also cut its Unsecured Personal Loan option by 100 basis points and IMB Bank chopped its Unsecured Personal Loan rate by 56 basis points. These rates now sit at 7.99% p.a. (8.27% p.a. comparison rate*) and 8.98% p.a. (9.34% p.a. comparison rate*), respectively. And in the fixed secured loan space, IMB Bank was the only lender to make changes as it cut its Secured Personal Loan by 47 basis points to 5.98% p.a. (6.33% p.a. comparison rate*).
Over August, Plenti and OurMoneyMarket both increased personal loan rates. For customers with excellent credit, Plenti increases its variable and fixed unsecured personal loan rates by 95 basis points. This left both starting rates at 6.39% p.a. (6.39% p.a. comparison rate*). On the other hand, after having cut its rate for customers with excellent credit in July, OurMoneyMarket hiked up its Low Rate Personal Loan fixed rate for customers with below average credit. These customers could now receive a rate 74 basis points higher of 20.99% p.a. (21.97% p.a. comparison rate*).
Although a few changes were made last month, heading into September most of the leading personal loan lenders on the Mozo database have remained the same. The best multi-purpose unsecured personal loan variable rate still belongs to Symple Loans, with rates starting from 5.75% (6.47% comparison rate*) and Harmoney holds the top unsecured personal loan fixed rate starting from 5.35% (6.15% comparison rate*). For secured loans, Illawarra Credit Union has the best rate starting at 5.25% (5.89% comparison rate*) on its Online Personal Loan Package. The top secured multi-purpose loan is still offered by Credit Union SA, with its Online-Only Fixed Rate Personal Loan at 4.25% (4.73% comparison rate*).
However, as mentioned Community First Credit Union has now taken the top spot offering the lowest green loan personal loan rate on the Mozo database. Plus, its home improvement loan option is the lowest renovation-only unsecured personal loan rate on the Mozo database as well.
To check out more on how interest rates are tracking in other banking products for September take a look at our snapshots for Home Loan Interest Rates, Car Loan Interest Rates, Savings Accounts Interest Rates or Term Deposit Interest Rates.