Personal loans in Australia currently range from 5.99% to 29.99% p.a. — a huge spread. The rate you get depends heavily on your credit score, income and the lender you choose. Here's how to get the best deal.
Personal loans in Australia can be used for almost any legitimate purpose: debt consolidation, home renovations, car purchase, medical expenses, holidays, weddings or covering unexpected costs. Some lenders restrict certain uses (e.g. gambling or business purposes), so always check the terms.
| Feature | Secured Loan | Unsecured Loan |
|---|---|---|
| Collateral required | Yes (car, asset) | No |
| Typical rate range | 5.99% – 14.99% | 8.99% – 29.99% |
| Approval speed | Slower | Faster |
| Loan amounts | Up to $100,000 | Up to $50,000 |
| Risk if default | Asset repossessed | Credit damage |
Your Equifax, Experian or illion credit score is the single biggest factor. Scores above 700 typically get competitive rates. Below 500, you'll face high rates or rejection from mainstream lenders. Check your score free at creditsavvy.com.au or getcreditscored.com.au before applying.
Lenders want stable, verifiable income. Most require at least 3-6 months of employment history. Casual and self-employed borrowers can still qualify but need to provide more documentation (e.g. 2 years of tax returns).
Your total existing debt repayments vs your income. Most lenders want this under 35-40%. If you have significant existing debt, consolidating first may improve your ratio.
| Credit Profile | Typical Rate Range | $20,000 / 5yr Monthly Repayment |
|---|---|---|
| Excellent (750+) | 5.99% – 9.99% | $377 – $424 |
| Good (650-749) | 10% – 15% | $424 – $475 |
| Fair (550-649) | 15% – 20% | $475 – $529 |
| Poor (below 550) | 20% – 29.99% | $529 – $633 |
The interest rate is just part of the cost. Always check the comparison rate (which includes most fees) and look for:
Some online lenders (e.g. Wisr, Plenti, NOW Finance) can approve and fund loans within 24-48 hours. Traditional banks typically take 3-7 business days. Having your documents ready (pay slips, bank statements, ID) speeds up the process significantly.
A hard credit enquiry (when a lender formally checks your credit) can reduce your score by 2-5 points temporarily. Multiple applications in a short period look worse. Use comparison sites that do soft checks first, or call lenders to ask about their criteria before formally applying.
Variable rate loans — usually yes, with no penalty. Fixed rate loans often charge a break fee. Always check your loan contract before making extra repayments.