low interest personal loans

Low Interest Personal loans

The lower the interest rate, the cheaper your repayments. Depending on the amount of money you need to borrow, and the time period you're prepared to pay it back in, a low interest loan could be a sensible way to finance anything from a car to your wedding. We can help you search for and compare low interest personal loans from a wide range of trusted lenders, including banks and peer-to-peer lenders. Start now.

Low interest personal loan comparisons on Mozo - last updated 24 July 2021

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

    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

    NOW Finance has permanently removed all establishment, account keeping and early repayment fees on new unsecured loans up to $50,000. For a simple borrowing solution, get your rate without affecting your credit score today.

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $34,757.21 including fees.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Low Rate Personal Loan (Fixed, Unsecured)

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    5.45% p.a.to 8.48% p.a.
    6.07% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.45% would cost $34,590.57 including fees.

    OurMoneyMarket offer competitive low rates on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.

    Compare
    Go to site
    Details
  • placeholder
    Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    5.44% p.a.to 7.49% p.a.
    5.44% p.a.to 8.19% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 5.44% would cost $34,332.26 including fees.

    With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. To qualify, simply earn above $25,000 and you’ll be on the way to start spending.

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Personal Loan

    Unsecured, Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.45% p.a.to 19.99% p.a.
    5.45% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 5.45% would cost $34,340.57 including fees.

    Excellent credit score needed to obtain this rate. Enjoy no-fuss personal loans of up to $30,000 with Alex. No hidden early repayment penalties. Terms from 6 months to 5 years. Convenient and fast 100% online approval. Must be over 18 to be eligible. Winner of Mozo's Experts Choice Best New Loan Product award 2021^.

    Compare
    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

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,405.64 including fees.

    Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. Borrow between $5,000 and $63,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!

    Compare
    Go to site
    Details
  • placeholder
    Unsecured Personal Loan

    Excellent Credit, Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 10.49% p.a.
    5.95% p.a.to 12.83% p.a.based on $10,000
    over 3 years

    Terms from 2 to 5 years. Representative example: a 3 year $10,000 loan at 5.95% would cost $10,943.74 including fees.

    Be rewarded for your good credit history with low rates. No ongoing fees. Pay off your loan with no early repayment penalties. Apply online and get a quote in minutes

    Compare
    Go to site
    Details
  • placeholder
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 24.79% p.a.
    6.14% p.a.to 25.74% p.a.based on $30,000
    over 5 years

    Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.

    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'll likely qualify.

    Compare
    Go to site
    Details
  • 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

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $34,757.21 including fees.

    Pay zero fees on loans up to $100,000 . No establishment fee. No ongoing fees or early payout fee. Get your personalised interest rate in two minutes with no impact on your credit score!

    Compare
    Go to site
    Details
  • placeholder
    Personal Loan

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Compare
    Go to site
    Details
  • placeholder
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    9.39% p.a.
    9.64% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 9.39% would cost $37,881.66 including fees.

    Borrow from $5,000 to $50,000. No account keeping fees. Free extra repayments and redraw facility. Apply online for fast approval (usually within 24 hours). Winner of Mozo's Experts Choice Award for Australia's Best Large Credit Union 2021.

    Compare
    Go to site
    Details
  • placeholder
    Standard Personal Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    7.99% p.a.
    8.62% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a n/a year $0 loan at 7.99% would cost $6,988.90 including fees.

    Heritage Bank discounted rates for loans starting from $5,000 to $25,000 and a choice of loan terms up to five years.

    Compare
    Go to site
    Details
  • placeholder
    No Fee Secured Personal Loan

    interest rate
    comparison rate
    Monthly repayment
    4.45% p.a.to 15.45% p.a.
    4.45% p.a.to 15.45% p.a.based on $30,000
    over 5 years

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 4.45% would cost $33,516.53 including fees.

    Pay zero fees on loans up to $100,000 with NOW Finance. With no establishment fee, ongoing fees or early payout fee. What’s more, get your personalised interest rate in two minutes with no impact on your credit score!

    Compare
    Go to site
    Details
  • placeholder
    Personal Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    6.99% p.a.to 18.99% p.a.
    7.91% p.a.to 19.83% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.99% would cost $36,383.67 including fees.

    Borrow from $5,000 to $55,000 with a 1 - 7 year flexible loan term with NAB. Enjoy no fees for extra repayments and no early exit fees. NAB accepts documents online so you can get your funds fast.

    Compare
    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

    Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 6.25% would cost $36,103.67 including fees.

    Enjoy flexibility with the ability to make additional repayments. Borrowers with excellent credit rating can receive interest rates as low as 6.25% fixed rate (7.64% comparison rate*). Loan terms between 1 to 5 years.

    Compare
    Go to site
    Details

^See information about the Mozo Experts Choice Personal loans Awards

*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.

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.

Personal loan lenders we compare at Mozo

Save with deals from the following well-known brands and many more...

See all personal loan providers

Personal loan resources

Reviews, news, tips and guides to help find the best personal loan for you.

FAQ

Comparing low interest loan options

When you're weighing up different finance options to make a major purchase like a new car, or pay for a serious expedition (see your next holiday with the kids), choosing the most affordable option just makes sense. Given that a lower interest rate means smaller repayments, a low interest personal loan could be one of the cheapest financing options for you.

So that you're across all the info you'll need to consider when comparing loans and lenders, we've pulled together this list of the FAQs we often get asked here at Mozo about cheap loans into one easy to read guide below so that you can make an informed choice.  

What you can use a low interest personal loan for?

Have you been putting off upgrading the family car or making some much needed
renovations to your home? Well the good news is that a low interest personal loan could be that little extra help you need to make things happen.

Depending on the amount of money you need to borrow, and the time period you're prepared to pay it back in, a low interest personal loan could be a cheap option to finance: 

  • An overseas trip
  • An upgrade to a new or used car - although also be sure you check out our car loan section as this features loans specifically for car purchases
  • Renovations to your home
  • Your wedding

Unless you are choosing a secured loan, generally you won't need to provide the bank with proof of your purchase but you will need to prove that whatever amount you borrow, you will be able to pay it back. If you're wondering how much this will be, head over to our loan repayments calculator to do some number crunching.    

Types of low interest personal loans available

Before you settle on a low interest loan option that looks appealing, it's important to get to grips with some of the different types of loans that could be available to you:  

  • Secured: In essence, this is a loan that is 'secured' against an asset you own - for
    instance, your car or home - which gives the bank or lender some assurance that it will be able to recoup the money lent to you. Given that the lender has a lower level of risk, a secured loan will generally offer a cheaper interest rate compared to an unsecured loan.
  • Unsecured: This is the opposite of a secured loan, meaning you won't need to put up anything against the loan as collateral. However, you'll still need to be able to prove you can meet the repayments - whether that's through providing payslips as proof of your income, or having someone that is willing to be your guarantor. Unfortunately not being able to provide that security also means you'll most likely be paying a higher interest rate.
Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More FAQs about low interest personal loans

Is it cheaper to get a fixed rate or a variable rate loan?

When it comes to paying interest on your loan you'll have two different options: fixed or variable. But given you're probably after the most affordable loan possible, which type of loan is actually cheaper? The answer is that it can be either, as it depends on the movement of the RBA's cash rate, but here's a simple explanation of the differences:  

  • Fixed: Love the idea of stability well this is exactly what a fixed loan will give you. Because the interest rate is fixed you'll have exactly the same interest rate over the life of the loan, and therefore certainty that you'll just need to make the same regular repayments. Opting for a fixed rate loan also means you'll be immune to any fluctuations in the cash rate, so you'll be able to have some certainty in your financial life.    
  • Variable: Variable rate loans can go up and down based on the RBA cash rate, which means the repayments you'll need to make are at the mercy of an external source. On the plus side though, while rates can go up they can also go down, which means you could actually end up getting a better (and cheaper) deal than a fixed rate, and these loans usually have flexible features that will mean that you can make extra repayments at any time to lower the cost and shorten the loan term.

What is a peer-to-peer lender? Are their rates lower than banks?

Peer-to-peer (P2P) lenders are becoming an increasingly prevalent, alternative option for Australians looking for low rate personal loans, but who are they? Providers such as Harmoney, Ratesetter and SocietyOne are basically online lending platforms which pair everyday investors with borrowers. Best of all, because they have lower overheads than some of the traditional players, P2P providers are generally able to offers loans with lower interest rates.

So is there a catch? Yes. While many of the minimum interest rates offered by peer-to-peer lenders are towards the lower end of the scale, the maximum rates can be very high. This is because P2P lenders will assess you on an individual basis based on a number of factors such as your credit history and employment status. If you're considered a borrower who is likely to pay back their loan (ie you have an excellent credit rating) then you may be offered a considerably lower interest rate than someone who is judged to be more risky.

Do traditional banks and lenders offer low interest rate personal loans?

They sure do. Some of the leading low interest loan options in the Mozo database are from credit unions and banks, which goes to show that it's always important to compare a range of options before taking the loan plunge.

Opting for a personal loan with a with a major bank over an online lender could mean you'll have access to benefits such as customer service at a bricks and mortar branch, and even greater choice when it comes to the loan amount you'll be able to borrow and the loan term.

Credit unions and mutual banks could also be a great option as not only do they generally have low interest rates, they are also well-known for providing a level of customer service you may not be able to get with an online provider.

Could I be missing out on any features by choosing a low interest loan over a standard personal loan?

The main drawcard of a low interest personal loan is in its name - the low interest! So if paying the lowest interest possible is number one on your priority list then a personal loan with a low rate is probably going to be the most attractive option. With this is mind, because you're paying a cheaper rate of interest, it may not offer all of the features you would expect from a standard personal loan.

Some of the features you might not have access to with a low interest personal loan include:

  • Extra repayments: Some personal loans will give you the option of being able to make extra repayments at any time which means you'll be able to pay off the loan faster.
  • Redraw facility: If you've made extra repayments on your loan in the past, some providers will provide you access to this money down the road if you need to redraw it again.
  • Repayment frequency: Want to sync your personal loan repayments with your pay cycle? Some personal loans will give you the choice to make your repayments on a weekly, fortnightly or monthly basis.

Not concerned about any of these features? Well there's no need to worry then. Even if you are, you may still be able to find a low interest personal loan provider that offers these handy features - it may just take some shopping around to see what's out there.

Are there any fees I should look out for?

Like any loan, a low interest personal loan could come with a number of different fees. These are some of the main ones you'll want to look out for:

  • Upfront fee: Also known as an application fee, this is what you'll be charged upfront when applying for your loan. While some providers will waive the fee altogether, they can can often be as high as $600.
  • Late payment fee: It's as straightforward as it sounds - if you don't make your repayments on time you could be slapped with a late payment fee. These can vary in cost, but will generally be around $30.
  • Break cost fee: If you've opted for a fixed rate personal loan, you may be required to pay a break cost fee if you choose to pay the loan out early. However, these aren't applicable to variable rate loans.
  • Ongoing fees: One of the features you'll want to look out for when applying for a loan is any ongoing service fees. A monthly or even yearly fee could really add up over the life of the loan, which is why it's important to look at the comparison rate when comparing loans as it takes into account the interest rate and fees.

How much could I end up saving by opting for a low interest loan over a standard loan?

There are a number of different factors that will ultimately decide how much you could save by choosing a low rate loan, including whether the loan has a fixed or variable interest rate, or if the loan is secured or unsecured. But as as example, let's have a look at this scenario:

Mark decides to take out a $20,000 loan over a four year term in order to help fund some renovations to his kitchen. Mark can use his house and car as collateral against the loan, so he's decided to opt for a fixed secured personal loan which has a low interest rate of just 5.44% (currently the lowest rate in the Mozo database as of December 13, 2017). According to the Mozo Personal Loan Comparison Calculator, Mark will end up saving $966 in interest over four years by opting for the low 5.44% interest rate option compared to the current average fixed secured personal loan rate in the Mozo database of 7.62%. It just goes to show that even a slightly lower rate could potentially net you a heap of savings over the life of a loan.  

How do low interest loans compare to other options like a low interest credit cards?

A low interest personal loan isn't necessarily going to be the right financing option for your own situation, with a number of other potential borrowing options, including credit cards, on offer. With a credit card, you may be able to take advantage of a range of features such as an interest free period as well as bonus point or rewards point offers - features that aren't available with personal loans. This mean a credit card could be a handy, and potentially more rewarding option for everyday spending.

However, if you know you're going to have to pay interest then a personal loan with a lower interest rate may be the better choice for you, especially with larger amounts. The average rate for all personal loans in the Mozo database is currently 9.81% (as of December 13, 2017), which compares to the average credit card interest rate of 17.22% - meaning you could be saving some serious interest by opting for a personal loan.

Personal Loan Reviews

ING Unsecured Personal Loan
Overall 1/10
Very very bad new look rate check

Very bad service with new look I don’t like. Different credit score

Read full review

Very bad service with new look I don’t like. Different credit score

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Vidya, New South Wales, reviewed 5 days ago
ING Personal Loan
Overall 1/10
Too bad this new credit score based personal loan.

Too bad this new credit score based personal loan. I am getting different score than with actual score. Too bad I should get 8.99 interest rate but I am getting 10.99. Very very bad.

Read full review

Too bad this new credit score based personal loan. I am getting different score than with actual score. Too bad I should get 8.99 interest rate but I am getting 10.99. Very very bad.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Vidya, New South Wales, reviewed 5 days ago
Great Southern Bank Secured Car Loan (Fixed)
Overall 5/10
Online application not check.

After applying for a car loan online I was unsuccessful. As directed online, I was told to phone if I wanted clarification. I did. All I was told was that the program worked it out. I asked further questions as we have a home loan with GSB (which has money available for redraw) and had a previous personal home loan which was paid out early. I also checked my credit rating which is excellent. Nothing. I was simply unsuccessful. No going through the details of what I had entered to check if I had filled out the online application correctly. Started another application for a reduced amount and stopped. GSB phoned to see if I needed help with this application. I represented the first loan scenario and a review was taken to see why I wasn’t successful. Low and behold, I had claimed $200 per week for phone use instead of $200 per month. My application would have been successful. Thank goodness for Mazda finance. Approved in less than 24 hours and I got to work with a person faced to face. I’m now taking my home and contents insurance and car insurance elsewhere. GSB have lost my trust.

Read full review

After applying for a car loan online I was unsuccessful. As directed online, I was told to phone if I wanted clarification. I did. All I was told was that the program worked it out. I asked further questions as we have a home loan with GSB (which has money available for redraw) and had a previous personal home loan which was paid out early. I also checked my credit rating which is excellent. Nothing. I was simply unsuccessful. No going through the details of what I had entered to check if I had filled out the online application correctly. Started another application for a reduced amount and stopped. GSB phoned to see if I needed help with this application. I represented the first loan scenario and a review was taken to see why I wasn’t successful. Low and behold, I had claimed $200 per week for phone use instead of $200 per month. My application would have been successful. Thank goodness for Mazda finance. Approved in less than 24 hours and I got to work with a person faced to face. I’m now taking my home and contents insurance and car insurance elsewhere. GSB have lost my trust.

Price
8/10
Features
9/10
Customer service
3/10
Convenience
6/10
Trust
6/10
Less
Gary, Queensland, reviewed 10 days ago

More personal loan reviews