Personal Loan Comparison Rates

Personal loan comparison rates can help you determine the true cost of a loan. Easily compare loan products from different lenders. Keen to know more? Read on for Monzi’s comprehensive comparison rate breakdown.

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 the comparison rate?

The comparison rate reflects the true cost of your loan. In short, it combines your loan amount, interest rate and most fees together into one rate to give you an idea of your total loan cost.

The comparison rate serves two purposes.

First, it provides borrowers with a clearer idea of what their total loan costs may be. That is, the total amount that you repay, not just the amount that you borrowed.

Second, it allows borrowers to easily compare loan products between lenders. That way, they can potentially find the right deal.

Keep in mind, however, comparison rates may not factor in all payable fees and charges. For example, dishonour fees for late or missed payments may be not be included in the rate.

While that covers the basics, there’s so much more to know. Dive into Monzi’s personal loan comparison rate guide now.

Calculating personal loan comparison rates

In calculating the comparison rate, lenders consider a number of factors. These includes:

  • The interest rate
  • Loan amount and term
  • Account fees
  • Establishment fees
  • Any other additional, on-going fees.

Using these elements, the lender can then determine what your comparison rate will be.

While that covers the inclusions, keep in mind that some fees are not included in the comparison rate. In short, any one-off fees that are only charged under certain circumstances will not be added. This may include:

  • Late fees
  • Early exit fees
  • Deferred payment fees.

What is the difference between the comparison rate and interest rate?

First things first, the interest rate and the comparison rate are not the same thing.

On the one hand, the interest rate is used to calculate your interest payment. In short, it’s expressed as an annual percentage of your loan amount. Ultimately, lenders apply interest to account for the cost of loaning you money.

On the other hand, as we’ve discussed, the comparison rate reflects the total cost of the loan. It factors in the on-going fees and charges along with the loan amount and interest rate so you know what you will repay. As it is a rate, it is expressed as a percentage of your loan amount.

Is a higher or lower comparison rate better?

In short, lower is better. After all, the comparison rate gives you an idea of the total loan cost. And, as you’d expected, the lower the cost, the less you pay.

So, when you apply for a loan, ensure you take note of the comparison rate. Compare loan products across lenders to try and find the best deal. With a lower comparison rate, you may be able to save yourself money.

Bear in mind, there may be other loan features to consider outside of the comparison rate. For example, are you able to make extra repayments without a fee?

Which lender has the best comparison rate?

In short, Monzi is unable to say which lender offers the best comparison rate. Typically, when you apply, you will be able to see the maximum comparison rate. As a result, you may be able to do your own research to find the best comparison rate.

However, keep in mind, that the maximum comparison rate won’t necessarily be the rate that you are offered. In fact, if you are in a solid financial position and have good credit then lenders may offer lower interest rates. As a result, your comparison rate will be lower.

The same may be true if you secure your loan with an asset.

However, in any case, your lender retains the right to determine your comparison rate. Ultimately, it will be listed in your loan contract before you reach an agreement. Read it thorough so you know what your total loan cost will be.

What is 0% personal loan comparison rate?

A 0% comparison rate is the cheapest possible loan. However, they are essentially never by offered lenders. After all, every loan comes with an interest rate. As a result, 0% comparison rate is not possible.

Generally speaking, 0% comparison rates have only ever been offered by car dealerships. While this sounds like a great deal, it’s not all it’s cracked up to be. In short, dealers may artificially inflate the price of the car in order to cover the costs of financing. As a result, you won’t save money.

Given this, if you find any lender offering a 0% comparison, it pays to be wary. After all, it may be too good to be true.

Personal loan comparison rates: they’re a necessity

As outlined by Australia’s National Credit Code, credit providers must outline the comparison rate when they advertise fixed term loans for personal use. This rate must include the interest rate as well as any other fees and charges.

In short, the aim of this requirement is to ensure that borrowers are aware of the true cost of their loan before they agree. Moreover, it also aims to make it easier for borrowers to compare loans to help them find the most affordable deal.

However, keep in mind that this rate does not include special fees that may only be charged in circumstances. For instance, late fees or early exit fees will not be included in the comparison rate calculation.

Do personal loans hurt credit?

Personal loans may hurt your credit. However, in the long-run they can improve your credit too. Ultimately, it comes down to how you manage your loan.

In the immediate short-term, taking out a personal loan may lower your credit score. This is due to the fact that a new debt is listed on your credit report.

In the long-term, the effects will either be positive or negative. If you make your repayments on time and pay off your loan on schedule then you may see improvements.

On the other hand, if you take out a personal loan and then miss repayments or default, your credit score will be adversely affected, potentially to a significant degree.

As a result, it’s crucial to only borrow what you can afford to repay.

How can I get a low interest personal loan?

If you’re looking to get a low interest rate then it pays to shop around. Compare lenders and loans to find the product that works best for you. In saying that, there are a few things you can do that might help you access low rates.

Firstly, if you’ve got good credit and have shown that you are a reliable borrower then lenders may reward you. They know that you will make your repayments on-time and in-full because you have done so consistently in the past. As a result, you will be considered less of a risk and you may be offered more competitive rates.

On the other hand, if your credit score isn’t the best, then one option could be to apply for a secured loan. Guaranteeing the loan with an asset reduces the lender’s risk. With this, lenders may offer lower interest rates.

Personal loan comparison rates woman grey shirt smiling

Loan size and personal loan comparison rates

With a personal loan, you can potentially borrow anywhere from $300 to $10,000. With the wide-range of loan products available, lenders opted to divide them into three categories: small, medium and large.

Each loan varies slightly and as a result the comparison rate may too. As a result, it’s important to know which loan you are applying for before you begin. See the table below for details:

Loan typeFeatures
Small loan
  • $300 to $2,000
  • Unsecured
  • 12 month repayment period
Medium loan
  • $2,100 to $4,600
  • Secured
  • Repaid over 13 to 24 months
Large loan
  • $5,000 to $10,000
  • Secured
  • 13 to 24 month repayment period

Low interest personal loan unsecured

Small unsecured loans typically range from $300 to $2,000. In short, they can help you manage a minor cash shortfall. Lenders will assess your application ASAP so you might have your cash loan before you know it.

Unsecured loans typically come with higher interest rates than secured loans as the loan is not guaranteed. In other words, if you default on your repayments, the lender will be unable to recover their losses. This explains why they are usually only small loans.

Personal loan comparison rate: what else should I look at?

While the comparison rate will give you an indication of the true cost of your loan, it shouldn’t be your only consideration. In short, it is simply one factor.

Before agreeing to a loan, it’s important to compare your options. Find the right deal that combines favourable terms with a competitive comparison rate. That way, you can give yourself the best change of managing your loan effectively.

As a guide, consider the following:

  • Any one-time fees or charges: late fees, early exit fees, etc.
  • How much can you borrow?
  • Are there a range of repayment terms on offer?
  • Secured or unsecured?
  • Is a personal loan right for my situation?
  • Does this lender treat their borrowers with respect and act responsibly?

Personal loan comparison rates through Monzi

As we’ve mentioned, Monzi is a lender-finder service. That means we connect everyday Aussie borrowers with a host of licenced lenders.

Submit one simple application and you can potentially access loans from $300 to $10,000. With repayment periods ranging from 12 to 24 months, you can get the cash you need now and spread the costs over the long-term. It may be a manageable option if you find yourself short on cash.

Does this sound like a product that’s right for you? Scroll up and 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.