The 5 Best Personal Loans For Australians

If you’re aiming to finance your dream wedding, a home renovation, further education, an international trip, a new car or electric vehicle, or to invest in stocks, a personal loan might be the solution. Many Australians rely on personal loans to afford significant purchases or expenses without draining their savings.

Below, we’ve highlighted seven personal loan options worth considering (in no particular order). While we’ve sought out reputable and low-rate offers, keep in mind that this list isn’t exhaustive. Before selecting a personal loan product, it’s essential to conduct your own research and carefully review quotes and terms and conditions.

1. ING Fixed Rate Personal Loan (Unsecured)

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This product from a reputable and popular bank offers a competitive interest rate range, making it a compelling option to explore. It provides cost-effectiveness for individuals seeking certainty in repayments while also offering the flexibility to add extra funds and potentially pay off the loan ahead of schedule without incurring any fees. To qualify, applicants must have a minimum annual income of $36,000 (before tax). It’s important to note that this loan is not accessible to self-employed individuals.

2. Harmoney Secured Fixed Rate Personal Loan

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Assuming you have a solid credit history and secure financing at the lower end of Harmoney’s fixed interest rate spectrum, you could secure one of the most competitive rates available and only incur the establishment fee as the sole charge. For those who don’t meet the lender’s security requirements, their unsecured rate begins at a competitive 5.76% p.a.

3. NAB Variable Rate Personal Loan (Unsecured)

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NAB stands out among the big four banks for offering the lowest possible rate on personal loans, coupled with the security of being backed by a major financial institution. Opting for the variable rate allows you to proactively manage your repayments and access additional funds through redraw facilities when necessary. Moreover, the associated fees are minimal, and there are no penalties for early loan repayment.

4. Plenti Fixed Rate Unsecured Personal Loan

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Plenti stands out as a reputable personal lender, earning high praise from customers in reviews. Offering a moderate interest rate, it caters to individuals with a solid credit history. Moreover, Plenti maintains a relatively low salary requirement for personal loan applicants—you must demonstrate an annual income of at least $25,000, including self-employed individuals who have been running their own businesses for at least 12 months.

5. Our Money Market Unsecured Fixed Rate Personal Loan

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OMM’s personal loan presents excellent value for individuals with above-average credit scores, especially if they secure an interest rate towards the lower end of the spectrum. With minimal fees, contingent upon consistent repayments, this option becomes even more appealing. Additionally, the streamlined online application process ensures swift access to funds when needed.

Frequently Asked Questions (FAQs)

1. What is the best personal loan?

A top-notch personal loan is characterized by its combination of a low interest rate and minimal fees. The interest rate you receive is subject to variation across lenders and is influenced significantly by your ability to repay the loan and your creditworthiness. Generally, individuals with higher incomes and outstanding credit scores are more likely to secure the most competitive interest rates.

2. Can I get a personal loan with bad credit history?

Certain online lenders specialize in offering loans tailored for individuals with poor credit histories. However, it’s important to note that due to the heightened risk for the lender, these loans typically come with higher interest rates. If you’re facing difficulties obtaining a traditional personal loan, you may explore the option of obtaining a no-interest loan of up to $3,000 from Good Shepherd. Rather than receiving cash, you provide an invoice, and the funds are directly transferred to the supplier or store. These loans are available through partnerships with various non-profit organizations across Australia.

3. What is an unsecured personal loan?

Unsecured personal loans do not necessitate offering an asset, like a car or house, as collateral in case of loan default. Typically, compared to secured loans, unsecured options tend to carry higher interest rates because lenders face increased risk.

4. Is it easy to get a $5,000 personal loan?

With unsecured personal loans, there’s no requirement to pledge an asset, such as a car or house, as collateral in the event of loan default. However, due to the heightened risk for lenders, unsecured options generally come with higher interest rates compared to secured loans.

Read more: The 5 Best Personal Loans For Australians