It is December, and there is a lot to look forward to for the last month of 2021. As the Christmas and summer holidays are around the corner, in addition to the opening of borders, there are so many reasons to want to take out a personal contract loan, and so several options exist when it comes to choosing a loan and lender in Australia. This is why it is important to ensure that you are getting the best personal loan possible.
With over fifty lenders to choose from, there won’t be the best personal loan for every borrower, but there are certainly some key characteristics that all good personal loans have in common. These are low-interest rates, minimum fees, and flexibility to make additional repayments.
Many personal lenders now use risk-based pricing, which means the loan interest rate is based on your credit profile. The rates for personal loan interest start at 4.99% (4.99% comparison rate), but choose more than a 20% comparison rate and get the best rate you need to match your credit score.
There are numerous ways to define which personal loans are the best, and ultimately the answer will depend solely on what is important to you and your financial situation. We’ve put together information on a variety of loan options. Below are 9 of the best personal loans in Australia.
Alex Bank Personal Loan
Alex Bank impressed us with its competitive rates and simple personal loans. With low fixed rates, from 4.99% per annum. (Comparative rate of 4.99% p.a), this loan rewards customers with high credit. Customers can choose to make weekly, bi-monthly, or monthly refunds, as well as the option to make additional refunds at any time, without any ongoing prepayment charges. Please note that no changes are allowed for this loan. Alex Bank is also waiving the setup fee of $295. So, if you applied before December 8, 2021, you may have avoided this additional cost.
What you stand to gain:
- Fixed rates from 4.99% per year. (Comparison rate of 4.99% per year)
- No upfront, ongoing, or prepayment charges (conditions apply)
- Borrow up to $30,000
NOW Finance (No Fee Unsecured Personal Loan)
With fixed interest rates of 5.95% per annum. (Comparison rate of 5.95% per annum), Now Finance online lender is the best option for borrowers with excellent credit looking for a loan between $5,000 and $50,000. Plus, you won’t have to pay a deposit or ongoing charges. There is a standard maximum loan term of 7 years, but if you borrow less than $8,000, the maximum loan term is three years. You can also repay the loan in advance without incurring any fees. This loan also allows you to choose between weekly and bi-weekly payments.
What you stand to gain:
- Borrow up to $50,000
- A fixed interest rate of 5.95% per annum. (Annual comparison rate of 5.95%)
- No fee
Great Southern Bank Unsecured Pesonal Loan
Great Southern Bank (formerly CUA) has one of the most exceptional customer service and trust. Your unsecured loan has no account maintenance fees, a recast feature, and a weekly repayment option, biweekly or monthly. Borrowers can choose between 1 and 7 years of the loan term and loan amounts ranging from $5,000 to a maximum of $50,000. An initial application fee of $175 should be considered. Apply online, and you can get approved within 24 hours.
What you stand to gain:
- An interest rate of 9.39% (comparison rate of 9.64%)
- Borrow up to $50,000
- Duration of the credit from 1 to 7 years
Greater Bank New Car Loan
Greater Bank enjoyed great success in all major banking categories of the People’s Choice Awards in 2021, receiving accolades for trust, customer service, and exceptional customer satisfaction. For people who want to buy a new car, the new car loan has a lot to offer. The interest rate is set at 4.98% (in comparison to 5.36%) and can be repaid for up to 7 years. There is a maximum loan of $100,000 and flexible weekly, monthly or bi-weekly payments. You can make additional repayments and repay the loan in advance without penalty, but there is a loan setup fee of $275. This is available to residents of NSW, QLD, and ACT.
What you stand to gain:
- A fixed interest rate of 4.98% (comparison rate of 5.36%)
- Borrow up to $100,000
- Additional refunds are allowed and redesigned
Our Money Market (OMM) Low Rate Personal Loan
Our Money Market offers competitive rates of up to 5.45% (comparison rate of 6.07%) for borrowers with excellent credit. Even taking into account the application fee of $250, it was cheaper than most of the other loans considered. Available for loans worth $75,000 and the loan term is between 1 and 7 years, it offers a lot of flexibility and no monthly fees. The early repayment of the loan without penalties, access to free restyling, and the choice between weekly, monthly, or bi-weekly monthly payments are other advantages.
What you stand to gain:
- Rate of 5.45% (comparison of 6.07%) for a high credit
- No monthly fees
- Borrow up to $75,000
Symple Unsecured Personal Loans
Borrowers can earn 1 Qantas Point for every dollar borrowed up to $50,000 (terms and conditions apply). There are a minimum loan amount of $5,000 and loan terms of 1 to 7 years. Interest rates start at 5.75% but vary depending on your credit history. The payments are monthly, but you also have the option to repay the loan at any time without penalty or additional repayment. A monthly fee of $10 should be considered, and if you don’t qualify for a rate below 5.75%, you will need to pay an upfront loan fee of up to 5% of the loan amount.
What you stand to gain:
- Prices from 5.75% (comparison rate of 6.47%)
- Earn up to 50,000 Qantas points
- Borrow between $5,000 and $50,000
Plenti Unsecured Personal Loan
Plenti’s simple online application means you can get a response within minutes and funds the next business day of approval. Interest rates start at 6.39% (comparison rate of 7.49%) for borrowers with excellent credit. The loan term varies from 3 to 5 years, with a maximum loan amount of $50,000. There are no setup, one-time or ongoing fees. Additional payments are permitted, and there are no prepayment penalties. To be eligible, you must earn $25,000 or more per year from a regular source of income (other eligibility criteria apply).
What you stand to gain:
- 1 Minute Rate Estimated
- Loan up to $50,000
- Rate from 6.39% (comparison rate of 7.49%) for excellent credit
NAB Unsecured Personal Loans Variable
The lowest variable starting rate for personal loans offered by a Big 4 bank, NAB personal loans, start at 6.99% (7.91% by comparison) for borrowers with excellent credit. The NAB unsecured personal loan refers to flexibility, with loan terms ranging from 1 to 7 years for amounts between $5,000 and $55,000. Refunds can be made weekly, biweekly or monthly, and there are no prepayment penalties for paying off your balance early. It also has a withdrawal feature so that you can use that money if you need it later. Do note that there are fees associated with this loan as well, including a setup fee of $150 and a monthly service fee of $10.
What you stand to gain:
- Additional free discounts
- Duration of the credit from 1 to 7 years
- Rates from 6.99% p.a. (Annual comparison rate of 7.91%)
Handypay Green Home Improvements
Handypay is an experienced home improvement plan provider with great loans that you can use for a variety of green home initiatives, such as solar panels, batteries, rainwater tanks, or energy-efficient renovations. There is an application fee of $250, but the loan has no checking or monthly account fees. Borrow up to $75,000 and choose a loan term of 1 to 7 years.
What you stand to gain:
- Borrow up to $75,000
- Loans from 1 to 7 years
- Rate of at least 5.79% per year (comparison rate of 6.36%)
Frequently Asked Questions About Personal Loans
What can I use personal loans for?
There are several reasons why you might want to get personal loans. Buying a car, consolidating debt, renovating, or getting married are some of the most common reasons for getting a loan. But there are no limits to the amount you can use for a personal loan, as long as you are willing to repay the borrowed money (with interest).
Please note that some personal loans will come with certain conditions in which they must be used for certain purposes, such as a green loan in which you will need to provide proof of purchase.
What are the characteristics of the best personal loans?
Money-saving characteristics are what you should look for in a personal loan comparison. With personal loans, include:
- Additional Repayments: If you are in a situation where you have extra money to apply for a loan, do so to get out of debt faster. This will also positively impact your credit history, helping you if you need to borrow money again in the future.
- Low Fees: Many creditors these days don’t charge fees, so it’s worth doing some research. There are many avoidable fees, such as overdue charges, so if you are approved for a loan, make sure you have a direct debit in place to make sure you meet your due dates for your bills.
Low-interest rate: the lower the interest rate, the lower your repayments. You usually need a great credit score to get the lowest personal loan.
