How To Find The Best Personal Loan Rates

With the best personal loan rates, you can reduce your total loan costs. By finding the right rate, you may save yourself money over time. Monzi is here to explore how personal loan rates work and what goes into them. Let’s do it!

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

Personal loans and the best personal loan rates

Personal loans are lump-sum cash loans that you can borrow to cover almost any personal expense you encounter. This amount is then divided evenly into a series of manageable repayments so you can spread the costs over the long-term.

One thing to note is that all loans come with an interest rate. This rate determines your interest payment. In short, the best rates are the lowest interest rates lenders offer. As a result, your interest payments are lower thus saving you on the total cost of your loan. Despite this, there is a number of other factors you should consider outside of your loan rate.

If you’re looking to access the best rates available, there are a few things you might be able to do. To help you out, Monzi’s assembled this guide covering not only best loan rates but a host of key personal loan information too. Let’s go.

What’s the difference between the comparison rate and the interest rate?

While doing your research you’ll probably come across these two concepts. Understanding the difference is crucial if you’re trying to find the best deal.

Firstly, the interest rate calculates your interest payment. This interest payment is simply the additional cost on top of your principal amount, added by lenders to cover the cost of lending you money. Interest usually comes as an annual percentage rate.

On the other hand, the comparison rate factors in the interest rate as well as most other fees associated with your loan. It is, as a result, a truer reflection of the total cost of your loan. In short, comparison rates exist to increase transparency and make it easier to compare loans side-by-side. For two loans of identical sizes, the one with the lower comparison rate will ultimately cost you less over the course of the loan.

Finally, keep in mind that the comparison rate may not include all potential fees and charge. For example, late payment fees may not be included in the comparison rate.

Best personal loan rates: secured loans

Secured loans are guaranteed by an asset belonging to the borrower. In other words, as part of your loan agreement, you’ll need to sign over one of your assets (e.g. your car or caravan)

The asset only becomes relevant if you default on your loan. If you fail to make your repayments then your lender can take steps to repossess the asset and sell it to cover their losses. In short, the asset is simply insurance for the lender.

Typically, you’ll need to secure any personal loan above $2,000. However, the good news is that usually, secured loans are offered with lower interest rates.

Low interest personal loan unsecured

With an unsecured loan, there’s no need to sign over an asset as security. However, without a guarantee, there are a few things to be aware of.

Firstly, lenders will typically only offer unsecured loans for amounts up to $2,000. In other words, small loans that typically come with a 12 month repayment term.

In addition to this, they may come with higher interest rates given the lender’s additional risk.

Ultimately, when it comes time to apply, you’ll need to decide between a secured or unsecured loan. So, select the one that works best for your circumstances.

Personal loan comparison

While finding the best personal loans rate may save you money on your repayments, it shouldn’t be your only consideration. Loans can be complicated and there are a number of factors to account for.

As a result, in order to find the right loan, it’s crucial to compare and contrast different loan products. Doing so could reduce your total loan cost while also ensuring your repayments are manageable.

As a guide, compare loans on the following:

  • Interest rate, fees and charges.
  • Comparison rate: outlines your total loan cost.
  • How much can you borrow: does this lender specialise in small loans or can you borrow up to $10,000?
  • The repayment terms: are there suitable terms on offer?
  • User reviews: compare lenders and their reviews to ensure they have a history of treating their borrowers well.

How can I get the best personal loan rates?

Unfortunately, there is no sure-fire way to guarantee that you will be offered the best rates. However, having said that, there are a couple of options that might help you access more competitive rates.

First, if you’ve got good credit and have proven to be a reliable borrower then lenders may offer better rates. This is due to the fact that you’re seen to be less of a risk.

On the other hand, if your credit’s not the best, securing your loan with an asset could work too. That way, the loan is guaranteed and lenders don’t have to worry so much about their potential losses. As a result, you might get a better rate.

However, ultimately, your lender will determine your interest rate. These are simply two factors that lenders may consider.

What type of personal loan is best?

In short, we cannot say. This is simply due to the fact that it will depend on your purpose and circumstances.

Personal loans come in a range of different forms and are offered for a number of reasons. As a guide, common examples include:

Best personal loan rates for bad credit

Bad credit history may make it difficult to access credit. Luckily, things are changing.

There are now a lenders who may offer online loans for bad credit borrowers. To do this, rather than simply zeroing in on your credit history, they’ll look at the bigger picture.

By assessing your current financial situation and budget, they can get an idea of what repayments might be affordable for you. If you are able to meet all the required criteria then you may be offered a personal loan with bad credit. However, lenders retain the right to approve applications where they see fit.

In addition to this, be aware that bad credit loans often come with higher interest rates to account for the lender’s added level of risk.

Best personal loan rates gold trophy against white background

What is the best reason to give when applying for a personal loan?

There is a simple answer to this. Tell the truth. You won’t gain anything by lying and it will create nothing but trouble if you do.

So, be open, honest and transparent. That way your lender can properly assess your loan and intentions to provide you with a responsible outcome.

And in any case, there’s no reason to lie. Personal loans can be used to cover almost any legitimate personal expense. As a guide, common reasons for applying include:

  • Car repairs
  • Household maintenance and re-decorating
  • Holiday or travel loans
  • Medical, vet or utility bills
  • New technology, appliances or furniture
  • Rental bond
  • Debt consolidation.

Best personal loan rates – how long do personal loans take?

It’s typically a good idea to account for a waiting time of up to 24 business hours. In saying this, same day loans may be possible. However, everything must go to plan.

In order to access same day loans, you’ll need to apply during business hours. If you apply through Monzi, we may be able to match you with an available lender in just one hour. From there, your lender will work fast to provide you with an outcome ASAP.

So long as your application is approved, your cash will then be transferred to you. At that point, your access to funds will be at the mercy of the transfer time between banks.

If it all runs smoothly then you may get your cash on the same day you apply. Alternatively, you may receive your funds the following business day.

Can I apply for a quick loan online?


In fact, one easy way to do it is to use Monzi’s lender-finder service. We work with a host of lenders who offer quick loan outcomes. Submit an application during business hours and we might be able to pair you with one such lender in just one hour.

In short, they’ll waste no time assessing your application. If you’re lucky, you’ll have an outcome before you know and your cash soon after.

Online lenders have made quick loans more accessible than ever. If you find needing cash in a hurry , they could be one option to help you manage the situation.

Are there emergency loans no credit check?

Yes, potentially. Some lenders may be willing to offer emergency loans without a credit check.

In short, lenders use credit checks to assess your history and reliability as a borrower. However, they may not always be required. As a result, you can potentially access no credit check loans.

However, keep in mind that not all lenders will offer no credit check loans. It will simply come down to their assessment policy. More often than not, lenders will conduct a credit check on your application.

In any case, as we’ve already mentioned, your credit history isn’t the be-all and end-all anyway. Lenders may investigate your financial situation too in order to get an idea of what may be affordable for you.

Responsible lending

When it comes to loans, one thing to remember is that nothing is certain. In order to comply with their responsible lending requirements, lenders must assess all applications they receive in to make sure the borrower is suitable for credit.

To do this, they’ll always meet their responsible lending obligations. This is a simple, three-step process that goes as follow:

  1. Lenders must make reasonable inquiries into your financial situation and loan objectives.
  2. They must take steps to verify this information.
  3. Based on their findings, lenders must make a final assessment as to your suitability for credit.

Ultimately, this process aims to ensure that borrowers never end up with a loan they cannot afford. However, it does mean that your application won’t always be approved. There are a number of criteria that you must meet first.

Are online loans safe?

Yes. If you apply with a licenced lender then there is nothing to worry about. So, before you apply, check their credentials to ensure you’re dealing with a responsible and reputable credit provider.

If you are worried about your security then one option could be to apply with Monzi. Our system is locked down by internet security giants McAfee and Comodo. As a result, your personal information is safe with us.

Not only that, when you apply, we will only ever pair you with a licenced lender. So, there’s nothing to worry about.

Best personal loan rates via Monzi

While we cannot guarantee that you’ll be offered the best personal loan rates, at Monzi, we can make it simple and convenient to find lenders online. Submit one easy application and you can potentially access personal loans up to $10,000.

Small personal loan$300 to $2,00012 month term
Medium personal loan$2,100 to $4,60013 to 24 month term
Large personal loan$5,000 to $10,00013 to 24 month term

Apply and you may be paired with a lender in just 60 minutes. There’s no paperwork and it’s 100% online. As a result, you can apply at the time that suits you best.

Ready to begin? Scroll up and apply today.

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You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. The minimum and maximum loan term is 12 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Loan amount

$2,001 - $4,600


13 months (minimum)

24 months (maximum)


48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principal Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Annual Percentage Rate (APR) for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000


13 months (minimum)

24 months (maximum)


21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.


Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principal Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Annual Percentage Rate (APR) for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.