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 9 May 2021

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure.
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    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 $50,000 with NOW Finance. With no establishment fee, ongoing fees or early payout fee. What’s more, get your guaranteed, tailored interest rate in two minutes with no impact on your credit score! Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.

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    Mozo Experts Choice 2021
    Low Rate Personal Loan (Fixed, Unsecured)

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.29% p.a.to 8.48% p.a.
    6.36% p.a.to 8.69% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.29% would cost $35,192.28 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.

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    Mozo Experts Choice 2021
    Personal Loan

    Unsecured, Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.49% p.a.to 19.99% p.a.
    5.49% 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 5.49% would cost $34,373.78 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^.

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    Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 7.49% p.a.
    6.39% 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 6.39% would cost $35,126.40 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.

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    Unsecured Personal Loan

    Excellent Credit, Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 8.99% p.a.
    5.95% p.a.to 12.32% p.a.based on $10,000
    over 3 years

    Terms from 2 to 3 years. Representative example: a 3 year $10,000 loan at 5.95% would cost $11,438.74 including fees.

    Be rewarded for your good credit history with low rates. Plus there are no ongoing fees and you can pay off your loan with no early repayment penalties. Simply apply online and get a quote in minutes.

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    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.99% p.a.to 24.79% p.a.
    7.79% 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 6.99% would cost $36,208.67 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.

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    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.

    Get same day approval on flexible personal loans from $5,000 to $55,000 on 1-7 year loan terms with NAB. Enjoy no fees for extra early repayments and get funds in your account fast. To be eligible you must be over 18 and be an Australian resident.

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    Personal Loan

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.
    7.10% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,680.23 including fees.

    Handypay offer flexible home improvement loans up to $75,000. Handypay is a specialist home improvement plan provider.

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    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    8.99% p.a.
    9.13% p.a.based on $30,000
    over 5 years

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 8.99% would cost $37,456.30 including fees.

    If you're after a low cost loan, this could be the one. There's no surprises, just flexible repayment options, a one-off upfront fee and no exit or ongoing fees. You can also have your upfront fee waived just by having an active Everyday Orange account.

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    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!

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    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.

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    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!

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    Mozo Experts Choice 2020
    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.

    No account keeping fees. Apply online and get a fast decision, normally within 24 hours. Winner of Mozo's Experts Choice Award for Australia's Best Large Credit Union 2020.

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^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.

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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.
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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

Suncorp Personal Loan review
Overall 1/10
Avoid this bank.

Stay away from this bank. Worst customer service for existing customers. Go out of their way to get your business but then make everything very difficult as a customer. Not enough branches across Australia and those that are available are inefficient and don't have enough authority to actually help. Online service is almost non existent and had to sit on hold for nearly an hour on the phone, only for the guy to tell me that the department I need to talk to have gone home for the day!! You need to wait months for things to happen and it will all go through the post. Have reported to the ombudsman. Avoid this bank, there are better options available with far better customer service.

Read full review

Stay away from this bank. Worst customer service for existing customers. Go out of their way to get your business but then make everything very difficult as a customer. Not enough branches across Australia and those that are available are inefficient and don't have enough authority to actually help. Online service is almost non existent and had to sit on hold for nearly an hour on the phone, only for the guy to tell me that the department I need to talk to have gone home for the day!! You need to wait months for things to happen and it will all go through the post. Have reported to the ombudsman. Avoid this bank, there are better options available with far better customer service.

Price
4/10
Features
5/10
Customer service
1/10
Convenience
1/10
Trust
2/10
Less
Ashley, Western Australia, reviewed 3 days ago
Commonwealth Bank Unsecured Personal Loan review
Overall 1/10
Baaaaaad

N/A

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
John, New South Wales, reviewed 3 days ago
Harmoney Unsecured Personal Loan review
Overall 6/10
Average rates, high fees

Easy application process, send monthly reminders 5 days prior to loan payment due, i have a great credit rating and given 10.99% interest rate where i should have gotten a lower one at 6.99, $400 fee to top up your loan, send you out invitations yearly to top up your account. Each time it goes on your credit report. No complaints except interest rate i was given and the very high fees.

Read full review

Easy application process, send monthly reminders 5 days prior to loan payment due, i have a great credit rating and given 10.99% interest rate where i should have gotten a lower one at 6.99, $400 fee to top up your loan, send you out invitations yearly to top up your account. Each time it goes on your credit report. No complaints except interest rate i was given and the very high fees.

Price
5/10
Features
1/10
Customer service
10/10
Trust
9/10
Less
Cherylin, Queensland, reviewed 5 days ago

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