Low Interest Loans – Monzi’s Easy Guide

Reduce your total loan costs with low interest loans. Find out how you might be able to access lower personal loan rates with Monzi’s comprehensive guide. We’ll cover the what, where, when and how. Let’s go.

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.

Low interest loans explained

All personal loans will come with an interest rate. It’s simply the cost that you must pay for the right to borrow money. However, not all interest rates are created equally. In fact, some lenders may offer low interest loans.

With a low interest loan, you’ll be offered a rate that is lower than what is typically offered by most lenders. As a result, when it comes time to make a repayment, you’ll pay less interest allowing you to potentially pay off your outstanding loan balance sooner.

Not only that, the fact that you are paying less interest means that over the course of your loan, you can potentially save a ton of money. Just make sure that there aren’t any paying additional fees to make up for the lower interest rate.

How can I access a loan with low interest?

While some lenders may offer cheap personal loans with lower interest rates than others, there may be a few things that you can do as a borrower that may help you access a better rate too.

Firstly, if you’ve got good credit and a reliable history of making repayments on time then some lenders will reward you for this. Given that you are not a default risk, they may offer you an interest rate that is lower than what is usually offered. However, lenders will only offer this at their discretion.

In addition to this, if you apply for a secured loan rather than an unsecured loan you may be able to take advantage of lower rates too. With a secured loan, you must attach an asset as security. If you default on your loan then the lender may repossess it to cover their losses. This security means that lenders can potentially offer lower rates on secured cash loans.

Low interest personal loans unsecured

Unsecured cash loans could be a quick and simple fix if you find yourself needing to cover a minor cash shortfall. You can borrow up to $2,000 and have it repaid in 12 months. As a result, it’s just a short-term loan commitment.

One thing to keep in mind is that lenders typically offer unsecured loans bad credit with higher interest rates than secured loans. This is due to the fact these loans are not guaranteed. As a result, if you default then the lender has no way to recover their losses.

Given this, if you are looking for the lowest possible rate then a secured loan may be a more appropriate choice. However, consider your options before applying for either a secured or unsecured personal loan.

Something a little larger

If a small loan of up to $2,000 isn’t going to cover your costs, that’s okay. With personal loans, you can potentially borrow up to $10,000. Best of all, these large personal loans may come with repayment terms of between 13 and 24 months. As a result, you can potentially spread your costs over the long term via a series of manageable repayments.

So, whether your cars need major repairs, you’ve got vet bills to pay or you’re just looking to do some renovations around your home, there may be a quick loan online that fits your needs. Note however, that these will be secured loans meaning that you must provide one of your assets as security on the loan.

Finally, if you do need a loan over $10,000, there may be credit options available. However, in most cases you will typically need to approach a bank.

Low interest cash loans bad credit

Credit history not looking too flash? Think it will stand in your way of getting a loan? Think again.

These days, there is no shortage of lenders willing to consider offering bad credit loans. In short, it’s all about a change in philosophy.

While in the past, your credit history was a big deal, lenders today tend to look at the bigger picture. While lenders will undoubtedly assess your credit history, they will look at your current financial situation too. As a result, your credit history isn’t the be-all and end-all.

If you are able to show that you are in a secure financial position and have your budget under control then it may be possible to access loans for bad credit.

However, keep in mind that these loans typically won’t be offered with low interest. After all, lending to bad credit borrowers is risky for lenders. So, you may need to pay a higher rate.

Low interest loans no credit check

If you’re a bad credit borrower, then emergency cash loans no credit check might seem like a handy option. After all, you probably think that if a lender assesses your credit, your application would be rejected.

While this is not unreasonable, it’s worth understanding that very few lenders will offer instant approval loans without a credit check. For most lenders, credit checks are a vital piece of the assessment process and are used to determine the likelihood that you will repay your loan. As a result, most will be unwilling to bypass this step.

In any case, even if you are not offered a no credit check cash loan, that’s okay. As we’ve mentioned, lenders these days are now often willing to consider bad credit applicants. In other words, a credit check won’t necessarily be the end of your application. Lenders will look at your finances too in order to determine if you could afford the loan you’ve applied for.

Can I get a low interest loan if I receive Centrelink benefit payments?

Yes, potentially. You may be able to access loans for people on Centrelink if benefit payments account for some or all of your income.

Having said this, it’s worth knowing that not all lenders will treat benefit payments the same. In short, while some will view these payments as legitimate income, others will not. As a result, the availability of quick loans on Centrelink may depend on the lender you are dealing with. Moreover, approval is not certain.

What about if I’m unemployed?

If you’re between jobs then it will typically be difficult to access cash loans online. After all, if you’re not employed then lenders will doubt your ability to make your contractual loan repayments. Having said this, there may be some lenders who offer loans for unemployed individuals.

To give yourself a chance of receiving approval, you must show that you receive some form of consistent income. As an example, some lenders may accept benefit payments as income. Without this, lenders will reject your application and you will be ineligible.

Even with an income source, remember that approval is not certain as lenders retain the right to offer loans where they see fit. As a result, you will only be offered a loan if you are in a secure financial position and can afford the repayments. This will obviously be difficult to prove if you are unemployed.

Fixed or variable home loans: which comes with lower interest?

In short, it will vary. After all, the interest rate on a variable rate home loan will change. As a result, we are unable to say whether a variable or fixed rate home loan will have a lower rate.

Beyond the interest rate, if you cannot decide which online home loan is right for you then consider the pros and cons. See below for more details:

Fixed rate mortgage

A fixed rate loan provides security and certainty as you know what your repayments will be. However, a fixed rate typically only remains in place for a period of one to five years before reverting to a standard variable form. Moreover, you may need to pay a premium, in the form of fees, for the security of a fixed rate.

Variable rate home loan

A variable rate mortgage comes with flexibility and a range of handy features (e.g. offset accounts). Moreover, you will often have the ability to make additional repayments if you can afford to. Finally, keep in mind that rates will change regularly and the effect will either be positive or negative.

Split rate loan

If you are unable to decide which option you prefer then you could combine them. With a split rate loan, lenders divide your repayment into a fixed and variable portion. In other words, you can balance the benefits of each type. However, note that a fixed rate will only remain in place for a short period and once it lapses, your loan will revert to the standard variable form.

Cheapest home loan rates Australia

Given that home loans can range into the hundreds of thousands of dollars, even a small saving on your interest rate can potentially save you a ton of money in the long-run. As a result, it’s crucial to try and find the lowest rate possible. Luckily there are a few things that you can do.

Firstly, consider making a larger deposit. While in most cases lenders will request a deposit of around 20%, if you’re able to go beyond this then you may qualify for a range of deals or exclusive rates.

In addition to this, consider a guarantor on your loan if you are unable to provide a sufficient deposit. If your parents have equity in their home loan then this could be used as security on your loan. As a result, you may save on your interest rate and won’t need to pay expensive lender’s mortgage insurance.

Finally, compare loans. Look at the fees and rates applied as well as any bonus features. This is the only way that you will discover a better deal.

Low interest loan calculator

Keen to know what the repayments will be on your low interest loans?

You can find out using a personal loan repayment calculator. In short, you’ll just need to enter the key details of your loan (e.g. amount, term, rate) and you’ll receive an estimate of what your repayments and total loan costs may be. A range of lenders and financial institutions will offer these calculators for free online, so do your research.

Alternatively, you could just use Monzi’s loan slider at the top of the page. Slide the bar to your desired loan amount and select your repayment term. You’ll then receive estimates of what you weekly, fortnightly or monthly repayments would be.

Finally, keep in mind that you should only use these figures as a guide. Your actual repayments may vary if you are offered a loan.

woman on laptop searching for low interest lows

What do credit scores have to do with personal loan rates?

It’s true that in some situations your credit score will impact your personal loan rate. In short, it comes down to risk.

Some lenders will offer what are known as risk-based personal loans. With these products, the rate that is applied on your loan is tied to your level of risk as a borrower. In most cases, your risk is measured by your credit score.

If your credit score is high and you have a good credit history then lenders will not consider you a risk and may reward you with a more competitive rate. On the other hand, a below average credit score may mean that you must pay a higher rate in order to account for the additional risk that lenders take on by allowing you to borrow money.

Having said this, not all lenders will offer risk-based finance. Many will simply charge a fixed rate based on your loan amount. Do your research to determine if a risk-based loan is right for you.

How long does it take to get a low interest loan?

In short, times will vary.

In some cases, it may be possible to access cash loans on the same day or even within just a few hours. However, be prepared for a wait of up to one business day.

If you are looking for a loan with fast approval then above all else you must apply during business hours. This will give you the best chance of receiving an outcome ASAP.

In addition to this, make sure that you supply the details that lenders require to assess your application. Nothing will delay your application like your lender having to chase up details that you failed to provide. Moreover, if information is missing then your application may be denied altogether.

Can I get instant loans?

While some lenders may advertise instant loans with low interest, it’s important to understand what this means. In short, you won’t receive an outcome as soon as you apply. This is due to Australia’s responsible lending regulations.

In short, lenders must assess all applications that they receive in order to determine if the loan is suitable for the borrower’s needs and objectives. To determine this, they will typically make inquiries into your financial situation and reasons for applying. Based on this information, your lender will come to a decision and provide you with an outcome.

As a result, instant loans online simply refer to loans where you receive an outcome in what feels like no time. However, there will always be some processing time involved.

For further details on responsible lending regulations and requirements, visit the Australian Securities and Investments Commission website.

Do low interest loans come with easy approval?

It’s true that not all lenders will have the same qualifying criteria. While some will be strict, others may be more lenient. As a result, they may be able to offer low interest loans with easy approvals. In other words, if your circumstances aren’t perfect (e.g. bad credit) then these loans could be an option for you.

Having said this, while these lenders may be understanding and more willing than others to take on risky borrowers, that does not mean that approval is certain. They will still assess your application to ensure that you have the capacity to repay the money you borrow. Moreover, lenders always retain the right to approve or deny applications at their discretion.

Low interest loans online: how do I find them?

One easy way to access credit online is to apply with Monzi. While we cannot guarantee if you will be offered a low interest loan, we can potentially connect you with a number of excellent online money lenders who can offer cash loans from $300 to $10,000.

All it takes is one easy application. From there, our automated system will take over and will attempt to pair you with an available lender from our network. In short, it could be a simple and easy way to find a licenced, high-quality lender online.

Alternatively, you could do your own research. Compare lenders, the loans they offer and their user reviews in order to find one that you are comfortable.

Low doc loans with low interest

If you’re self-employed or earn an irregular income then you may be aware of the challenges you’ll experience when trying to get a loan. In most cases, you fail to meet a normal lender’s income requirements. Luckily, that’s where low doc loans might be able to help.

In short, low doc personal loans (short for low documentation) provide accessible loans options for self-employed individuals. To do this, rather than requiring you to provide standard documents, lenders will accept a range of other information. This may include tax returns or profit and loss statements for your business. From this, lenders may be able to get an idea of your income and budget.

Having said this, Monzi cannot guarantee if you will be offered these loans with low interest rates. In most cases, lenders view these loans as riskier given the uncertain incomes of borrowers. As a result, they will often come with higher rates than those typically charged.

Low interest car loans

With a low interest car loan, you’ll get the cash you need to purchase your vehicle and can minimise your interest payments too. While this sounds great, the availability of these loans may vary. Moreover, it may depend on the features of your loan (e.g. vehicle, term, amount).

In any case, if you’re after a new car loan then Monzi can help. In short, we work with lenders who offer car loans from $5,000 to $30,000. Best of all, you can repay them over a two to five year period. As a result, purchasing a new car might be more realistic than you think.

Finally, as a word of warning, if you see a zero interest car loan, be wary. While you may not need to pay interest, in most cases your costs will not be any lower than with a standard used car loan as you will need to pay a number of additional fees.

Which lenders offer loans with the lowest interest?

In short, Monzi is unable to say. As a result, you must do your own research and compare the products offered by a range of different credit providers.

As a rule, leave no stone unturned. While banks have traditionally been a major source of cash loans, these days there are a range of other options. Not only can you apply with a number of top-notch online lenders, new peer-to-peer lenders can possibly offer low interest loans too.

So, pick the one that suits your circumstances the best. While it’s easy to apply with the first lender that you find, if you shop around then you may be able to find a better rate or more favourable terms. In the long-run, it could potentially save you a ton of money.

Low interest loans and Monzi

While we’ve covered all that you need to know about low interest loans, unfortunately, Monzi is unable to offer these credit products. That’s because we’re a lender-finder service.

In short, if you’re looking for a personal loan then you can apply with us. Our simple and easy service makes it easy to find great lenders online who can potentially offer fast cash loans from $300 to $10,000. However, we cannot guarantee if you will be offered a low interest loan.

So, don’t spend all your time trying to find a lender. Let Monzi do it for you. Apply and you may be paired with an available lender in just 60 minutes.

Start your journey with Monzi today!

Am I eligible to apply with Monzi?

At Monzi, we aim to help as many Aussies as possible. However, we do have a few eligibility criteria that you must meet before you begin your application. No need to worry though, they’re as easy as can be. Check them out:

  • Australian citizen or permanent resident.
  • At least 18 years of age.
  • Have an active email address and mobile phone number.
  • Hold an online bank account with at least three months of transaction history.

How do I apply?

Once you’ve confirmed that you are eligible, you’re free to move onto your application. At Monzi, we’ve made applying simple. From start to finish, you might have it completed in minutes. That way, you can get on with your day sooner. All you need to do is:

  1. Select your loan amount and repayment term (where applicable).
  2. Provide the necessary financial and personal details then submit your application.
  3. Wait while we attempt to pair you with an available lender from our network. Apply during business hours and we might have an outcome for you in just 60 minutes.
  4. We’ll be in touch to let you know the result of our search. If we’re able to successfully pair you with a lender then they will contact you to conduct an assessment.

What loans are offered by Monzi’s lenders?

At Monzi, we work with lenders who offer cash loans from as little as $300 all the way up to $10,000. With such a wide-range of offers, lenders typically divide these loans into three categories. Each will vary slightly so it’s important to know which one you will be applying for.

See below for the key features of each loan-type:

Small loans

Small cash loans come with the following features:

  • $300 to $2,000
  • Unsecured loans
  • Repaid over 12 months

Medium loans

  • $2,100 to $4,600
  • Secured
  • 13 to 24 month repayment terms

Large loans

  • $5,000 to $10,000
  • Secured loans
  • Select a repayment term between 13 and 24 months

When can I apply with Monzi?

Whenever you like!

At Monzi, we know that expenses can appear at any time. That’s why we’ve made our website live 24/7. As a result, you can apply when you need. It doesn’t matter if it’s a weekday, weeknight or even a weekend. We’re always ready and willing to accept your application.

Not only that, as we’re 100% online, you can apply from anywhere too. As long as you’re connected to the internet, Monzi’s easy-to-use website is right there in the palm of your hand.

Having said this, keep in mind that applications received outside standard business hours may experience delays. While we may be able to pair you with a lender, they typically will not conduct assessments during these times. As a result, you may need to wait until the following business day to receive an outcome.

Contact us

If you have a question about Monzi or what our service entails, email us at hello@monzi.com.au and one of our customer service team members will get back to you with a response. Just keep in mind that we will only respond during business hours.

In addition to this, remember that we can only answer questions about Monzi. If you have questions about what loan products are offered by lenders or about a loan that you’ve taken out then contact your lender directly. We cannot speak on behalf of other organisations and will therefore be unable to answer your questions.

Apply now

Do you think Monzi’s is right for you?

Scroll up and use our loan slider at the top of the page to begin your application 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.