Personal Loan Comparison Australia

Personal loan comparison Australia: learn what you need to consider and compare to find the best deal. Spend a little time to potentially save yourself money. Monzi will run you through all the information you might need to know. Learn all the tips and tricks. 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.

What is a personal loan?

A personal loan provides you with a lump-sum cash amount that you can use to cover an immediate expense while spreading the costs over the coming months or years.

Typically, you can borrow from as little as $300 all the way through to the sizable sum of $10,000. Repayments are then divided evenly over a period of between 12 to 24 months. As a result, you don’t need to compromise your current savings.

Best of all, there are plenty of great online lenders who may offer the finance you need. As a result, there’s no paperwork and you can apply when you like. Moreover, these lenders will work to provide you with quick outcomes.

If you have an expense that you need to cover, a personal loan could be an option for you. Read on to find out how to compare loans to potentially access the best deal.

Personal loan comparison Australia: the key features

If you’re going to compare loans, you first need to know what to compare. Luckily, we’re here to break down the important concepts.

Before agreeing to any loan, it’s important consider and compare all of the following aspects:

Personal loan comparison Australia – interest rate

This will determine your interest payment. In short, your interest payment is the cost applied by the lender to cover the expense of lending you money. Typically, your interest rate will be an annual percentage. Usually, lower is better. That way, you can reduce the amount of interest that you pay.

Fees and charges

The fewer fees, the better. In short, fees and charges are additional costs added to your loan on top of your interest and principal repayments. Lenders will vary on the fees they apply so read your contract thoroughly and identify them before reaching an agreement.

As a guide, common fees include:

  • Early-exit fees
  • Administrative fees
  • Establishment fees
  • Late fees
  • Direct-debit fees.

However, this is simply a rough guide. Lenders may vary in what fees they charge.

Comparison rate

The comparison rate includes your fees, charges and interest on top of your principal amount to give you an idea of what your total loan cost will be. In short, it’s one of the most important aspects. The lower the comparison rate, the less you will pay.

Lenders must advertise the comparison rate for all loans they offer. This makes comparisons simple. Just look at lenders side-by-side to determine which one is offering the more competitive loan product.

Bear in mind, the comparison rate may not factor in all payable fees and charges. For example, missed payment fees may not be included.

Secured or unsecured – personal loan comparison Australia

With a secured loan, you must include an asset as security as part of your loan agreement. If you default on your loan then the lender may take steps to repossess this asset and sell it in order to recover their losses. However, with an unsecured loan, there’s no such requirement.

One thing to note is that secured loans are usually larger and typically have lower interest rates than unsecured loans. This due to the fact that there’s less risk for lenders with a secured loan.

As a result, you will need to decide which type of loan is best for you.

Loan amounts, features and terms

Personal loans may range from $300 to $10,000. However, this range won’t necessarily be offered by all lenders. In other words, if you’re looking for a $10,000 loan, ensure the lender you are applying with can offer this product.

In addition to this, ensure there are manageable repayment terms on offer. Typically, personal loans come with repayment periods that may range from 12 to 24 months.

Lenders

Finally, you need to compare the lenders. While it’s great to get a low interest rate and flexible repayment terms, at the end of the day, finding the right lender is just as important. Make sure they are licenced and read their reviews online to ensure they have a history of treating their borrowers well.

Don’t just assume all lenders are the same; they’re not. The right lender can make your life much easier, particularly if your repayments don’t quite go to plan.

Personal loan comparison Australia: loan size

As mentioned, personal loans may range from $300 to $10,000. With vast range, lenders typically divide loans into three categories based on their size.

This is an important consideration when you are comparing loans. Each loan is slightly different so you need to know which loan you need before you begin.

So, see below for details:

Small loan

  • $300 to $2,000
  • Unsecured
  • 12 month repayment term.

Medium loan

  • $2,100 to $4,600
  • Secured
  • Repaid over 13 to 24 months.

Large loan

  • $5,000 to $10,000
  • Secured loan
  • 13 to 24 month repayment term.

Personal loan comparison Australia: What is the lowest personal loan rate?

In short, Monzi is unable to say what the lowest rate will be. Ultimately, lenders take into account a range of factors in order to determine the rate you are offered. As a guide, considerations may include your loan amount, credit history and whether you are applying for a secured or unsecured loan.

As a result, if you are looking for a lower rate, there are two options that may help.

Firstly, if you have good credit then lenders may offer lower rates as you are less of a default risk. In addition to this, if you opt for a secured loan over an unsecured loan then you may also be offered a lower rate. This is due to the fact that the loan is guaranteed, thereby reducing the lender’s risk.

Personal loan comparison Australia woman thinking white background

Which lenders give loans easily?

Some lenders may offer eligibility criteria that aren’t quite as strict as traditional lenders. In short, they’re understanding of a range of circumstances. This may include bad credit or if you receive benefit payments.

They’ll look at your complete financial situation in order to get an idea of what may be affordable for you. Simply having a poor credit history won’t mean that your application is rejected out of hand. They will take the time to decide what is right for you.

In saying this, while they may be more understanding, your application must still be assessed. After all, by law, all applications must undergo an assessment. From this, lenders will decide whether to approve or deny your application.

Responsible lending

As mentioned, all applications are subject to an assessment. With this, you’re probably wondering what’s involved.

In short, lenders must determine your suitability for credit. Ultimately, it’s about protecting you as the borrower to ensure you are only offered a loan that is affordable for your circumstances. To determine this, lenders must satisfy three responsible lending obligations.

  1. The lender must make reasonable inquiries into your financial situation and loan objectives.
  2. Take reasonable steps to verify this information.
  3. Make a final assessment about whether the credit is suitable for the borrower.

Personal loan comparison Australia: the right loan for your circumstances

These days, lenders tend to be more understanding than they used to be. In other words, they take on applicants from a range of different circumstances.

While products offered will vary from lender to lender, possible loans that may be offered include:

  • Bad credit loans
  • No credit check loans
  • Loans for people on Centrelink
  • Debt consolidation loans
  • Car loans
  • Travel or holiday loans

As a result, there may potentially be a loan that works for your needs and circumstances. However, lenders will offer these products at their discretion.

Are personal loans a bad idea?

Personal loans may be a manageable option if you have an immediate expense to cover. That said, there are risks involved.

If you borrow too much then you can end up missing repayments. In a worst case, you might even default on your loan. If this happens then your credit score will take a hit.

That’s why it’s so important to only borrow what you can afford to repay. Moreover, compare loans to find the right deal. If you do that, you’ll give yourself the best chance to manage your loan effectively.

Where can I borrow money fast?

Some lenders may offer fast outcomes. That means, if you apply during business hours, they’ll waste no time assessing your application. As a result, if it all goes to plan you can have an outcome ASAP.

When you’re in a bind and need cash in a hurry, this can be a handy option. You’ll get the cash you need and can spread the cost over the coming months.

Looking for fast outcomes when you borrow money? Consider applying with Monzi. Our lender-finder service may be able to match you with a lender offering quick outcomes for cash loans up to $10,000.

Apply today.

Personal loan calculator

While it’s important to compare the key features, it’s also crucial to know what you will be paying. With a personal loan calculator, you can get an idea of what you regular repayments and total loan costs will be.

Simply find a free, online calculator offered by a lender or financial institution and enter your loan amount, interest rate and term. From there, you’ll get estimates of your repayments and total loan costs.

Use this information as a guide to determine if the loan will be affordable for you. However, keep in mind that your actual repayments may vary.

One handy calculator may be Monzi’s loan slider at the top of the page. Drag the bar to your loan amount, select your repayment period (where applicable) and you’ll get an estimate of the associated weekly, fortnightly and monthly repayments. Simple, right?

Personal loans through Monzi

Monzi is a lender-finder service. That means we match Aussie borrowers with a range of great lenders in a simple and convenient manner.

All it takes is one simple application. Apply today and you may be paired with an available lender in just 60 minutes.

Access cash loans from $300 to $10,000 which you can repay over 12 to 24 months. They could be the right option for you when you need cash fast.

Ready to apply? Scroll up and use our loan slider to begin your application now.

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.