How To Personal Loans Compare

Find the loan that works best for you with personal loan compare. Consider all the factors that are relevant to your financial situation. You may be able to save yourself money and ensure that your loan is paid on time and in full. Keen to know more? Read on.

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 explained

First things first, what’s a personal loan? Put simply, it’s a lump sum cash payment offered by a lender that may range anywhere from $300 to $10,000.

With this, you get the cash you need now, while your repayments are divided into a series of even, regular amounts over a given period. As a guide, lenders may offer repayment periods that range from 12 to 24 months (It may depend on the amount borrowed).

Remember that personal loans come with interest meaning the amount you repay will exceed the amount you borrowed. The obvious trade-off being personal loans provide access to cash when you need it.

Personal loans can cover a variety of expenses. Whether it’s for a used car, rental bond, travel costs or consolidating your debt, personal loans may help if you suffer a cash shortfall.

Now that we’ve covered that, let’s look at how to compare loans.

Personal loan compare: the key terms

If you’re new to borrowing then you’re going to run into a lot of unfamiliar terms. However, if you’re looking to compare loans then understanding these terms is important.

So, to help you out, Monzi has compiled this quick glossary of key terms you might encounter. Check it out:

Interest rate

The interest rate calculates the amount of interest you will pay, based on a percentage of the amount you owe. Typically, this will be expressed as an annual percentage.

While certain loan types, like bridging finance or a construction loan may have an interest-only repayment period, personal loans are different. In other words, every repayment you make will include both your principal amount, as well as any interest and fees.

Fees and charges

These are additional charges throughout the course of your loan. Includes establishment, ongoing as well as other fees. Lenders apply these charges to cover the costs associated with processing and managing your loan.

Your loan agreement will include all payable charges and fees.

Comparison rate

The comparison rate includes your interest rate and fees in order to calculate the total cost of your loan.

Repayment period

The time between your first and final repayment. In short, how long will it take before your loan is repaid.

Principal amount

The amount you owe before considering interest and fees. Initially, it is the amount you borrowed, however, as you make your repayments it becomes your outstanding loan balance.

Secured and unsecured loan

With a secured loan, you must sign over an asset as security (e.g. your car or boat) in order to guarantee the loan. This is not required for an unsecured loan.

Personal loan compare: the how to guide

Now that you understand the key terms, comparing loans is relatively simple. However, it is still necessary. Finding the right loan may reduce your total costs or make your regular repayments more affordable.

So, looking to compare loans? Here’s what to consider:

  • Interest rate, fees and charges: these will determine the amo unt you repay on top of your principal amount. Lower rates and fewer fees are usually better.
  • The comparison rate: this includes the interest, fees and charges. Compare the total loan cost to see if you can save money.
  • The amount you can borrow: if you are looking to borrow $10,000 but the lender only offers loans up to $2,000, this is an issue. So, compare how much you can borrow.
  • Repayment terms offered: ensure suitable terms are on offer (e.g. 13 to 24 month period.)
  • Who is the lender: compare lender reviews to select the one that treats their borrowers right.

Types of personal loans

When it comes to comparing personal loans, it’s important to get the right loan for your intended purpose. Personal loans come in a range of different types and each may differ slightly in their features.

As a guide, common personal loan types include:

  • Secured loans
  • Unsecured loans
  • Car loans
  • Holiday loans
  • Debt consolidation loans
  • Bad credit or no credit check loans
  • Loans for people on Centrelink
  • Rental bond loans

Through Monzi’s lender-finder service you may be able to access lenders who offer these loan products. As a result, there may be something for you no matter your cash need. Apply today and we may be able to pair you with a lender in just 60 minutes.

Small, medium and large personal loans compare

With loans ranging from $300 to $10,000, lenders opted to create three separate loan categories: small, medium and large. Each differs slightly, so, before you begin, ensure you know which loan you will be applying for.

See the table below for more details:

LoanAmountSecurityTerm
Small loan$300 to $2,000Unsecured12 month repayment period
Medium loan$2,100 to $4,600Secured13 to 24 month repayment period
Large loan$5,000 to $10,000SecuredRepaid over 13 to 24 months

Personal loan compare coloured toys against blue background

Do I have to accept the loan I’m offered?

No.

If you are comparing personal loans and find that you are not happy with the loan you’ve been offered then you are free to decline it. Simply inform your lender that you don’t wish to proceed and your application will be withdrawn.

However, this is only possible before you have agreed to your loan. If you’ve signed your contract and then wish to back out, unfortunately, this likely will not be possible.

In assessing your application, lenders are looking to determine if the loan is affordable for you. As a result, the loan you are offered can differ from the loan you’ve applied for. This may be frustrating, however, remember that lenders are just lending responsibly. Consider this before withdrawing your loan application.

Who is the best personal loan lender?

There are a range of great lenders who may be prepared to offer you finance online. As a result, it can be difficult to say with certainty which lender is the best.

If you apply through Monzi using our lender-finder service, you can be sure that you will only be paired with a licensed lender. They take their responsible lending requirements seriously and will assess your application to ensure the loan is affordable for you.

If that’s not enough, a handy is to research your lender before reaching an agreement. Read their reviews online to get an idea of how they’ve treated their borrowers in the past.

What is a good personal loan interest rate?

It’s difficult to say what a good interest rate may be as they do vary based on the features of your loan and application. In other words, lenders will look at a range of factors to calculate the rate you are offered.

As a guide, these factors will include:

  • Secured or unsecured: secured loans may come with lower rates.
  • Your credit history: bad credit loans may come with higher rates as lenders may view you as a risk.
  • The loan amount and terms: the rate offered on a small loan may be different to a large loan.

Given this, interest rates may vary. As a result, we are unable to say what a good rate may be. In any case, before agreeing to a loan, read your contract to find the rate that you will be offered.

Personal loan compare calculator

Keen to know what your repayments will be? An online personal loan calculator can help. These free resources will give you an estimate of your repayments and total loan cost.

Simply enter your loan amount, repayment period, interest rate and any fees you will be charged. From there, the calculator will produce an estimate.

These figures are simply a guide, however, they are a useful first step to determine the loan amount that might work for you.

Moreover, if you’re not sure where to look, the MoneySmart personal loan calculator is a great place to start. In short, it’s totally free and easy to use. You might have an estimate in no time.

Alternatively, consider Monzi’s loan slider at the top of the page. Select your preferred loan amount and repayment period and you’ll get an estimate of your repayments. However, again, these are simply a guide and might not reflect the true cost of your loan.

How can I get a low interest personal loan?

In short, your lender will calculate your interest rate based on a number of factors. As a result, before agreeing to your loan, ensure you have read your contract and know the interest rate that will be applied.

If you are looking for a low interest rate then there may be a few things you can do.

First, if you’ve got a good credit score and a solid history of making repayments on time then lenders may be more prepared to offer you a competitive interest rate. This is, after all, due to the fact that lending to you will be less risky than someone with bad credit.

If your credit score isn’t the best then another option may be to apply for a secured loan. Securing your loan with an asset, in short, means that the lender has an avenue to recover their losses if you default on your loan. As a result, the lender’s risk is reduced and lower rates may be offered.

Personal loan compare: are personal loans a bad idea?

In short, it comes down to how you manage your loan. Personal loans have a number of pros and cons that means while they can be a useful financial tool, they can also be disastrous for your financial situation.

This is why comparing personal loans is so important. Finding the right deal to ensure your repayments are affordable and manageable gives you the best chance to repay your loan with no issues. In this case, personal loans can help you navigate a cash short-fall.

On the other hand, if you borrow more than you can afford to repay then problems can occur. Debt spirals, defaults, damage to your credit score and even bankruptcy can all result from a poorly managed loan.

As a result, consider all the available information and weigh up the pros and cons before applying for a personal loan.

What information do I need to provide when I apply?

As part of your application, you will need to provide some key personal and financial information. Providing this information when you apply will ensure you receive an outcome without delay.

So, before you begin, ensure you can provide the following:

  • Personal information (name, address, etc.)
  • Online banking details
  • Current financial information (income and expenses)
  • Any outstanding debts
  • The amount you wish to borrow
  • Any other relevant information (e.g. MyGov details and Centrelink payments)

Personal loan compare and Monzi

While you could spend hours comparing personal loans, Monzi can make it easy. Submit one simple application and our automated system can potentially match you with an available lender in just 60 minutes.

Access personal loans from $300 to $10,000 through one of our licenced and trusted lenders. Monzi may be the easy way to access credit online. There’s no paperwork involved and we strive to provide quick outcomes.

Think a personal loan is right for you? Apply now.

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Factor In

Costs

Two credit cards
Two credit cards

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

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

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%. 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

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

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

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. 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

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

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

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. 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.