Personal Loan Comparison Guide

Personal loan comparison can be difficult if you aren’t sure how to compare lenders. Obviously, however, comparing your options is necessary for choosing the best loan for your situation. Monzi is here to hopefully give you the tools you need to compare lenders.

Monzi is a lender-finding service. We do not offer financial advice. Consider seeking independent legal, financial, taxation or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

Personal loans: a quick explanation

A personal loan is a lump sum cash amount that you can borrow from a lender when you have an expense that you can’t quite cover. In other words, you’ll receive the cash you need now and then your costs will be divided evenly into a series of repayments over a fixed period (e.g. 12 months). As a result, it can potentially be a manageable option to cover an expense today.

Having said this, keep in mind that all personal loans come with interest. This is the premium that you must pay for the right to borrow money. As a result, you will always repay more than the amount that you borrow.

So, now that we’ve covered the basics, we can start looking at personal loan comparisons. Read on as Monzi breaks down how you can potentially select the right loan for your circumstances. Let’s go.

What can I use personal loans to cover?

The best thing about personal loans is that they can cover almost any expense that you encounter. All you need to do is provide the exact reason when you apply. As a result, they may be a useful option if you find yourself unable to find the cash to pay for an expense that just can’t wait.

Given this, the list of potential expenses is almost endless. However, some are certainly more common than others. As a guide, the most frequent reasons that Aussies apply for a personal loan include:

Personal loan comparison Australia: why is it important?

It is important you compare your personal loan options. After all, making an informed decision may help you save money and get more out of your loan.

On the other hand, if you sign a loan contract that is unsuitable for your situation, you may find yourself struggling with repayments.

Initially, it may be tempting to base your decision solely off the advertised interest rate. While the interest rate is, obviously, an important aspect to the loan, there is a number of other things you should consider.

Personal loan interest rates comparison

As you know, the interest rate is the percentage you pay on top of the principal. Obviously, this can have a huge impact on the total cost of your loan.

Bear in mind, personal loan rates may come as either fixed or variable. Naturally, fixed rates stay the same, while variable rates are subject to change.

Fees and charges

There will likely be additional charges on top of your loan outside of the interest rate. Common examples of fees include:

  • establishment or set-up fee
  • monthly fees
  • annual fees
  • dishonour fee for missed or late payments
  • early repayment fees.

The type of loan you take out will determine what kind of fees you will pay. Keep in mind, all the fees and charges associated with your loan will be included in your loan contract. If you aren’t sure why a certain charge is included in your loan, get in contact with your lender for more information.


Another thing to consider during a personal loan comparison is whether it is an unsecured personal loan or an secured loan..

Attaching security reduces the level of risk for the lender. Moreover, the borrower guarantees the loan with one of their assets, like a car or motorbike. If the consumer fails to repay their loan, the lender can repossess the asset to recover their losses.

As a result, lenders often require security to be attached to loans over a certain amount, often $2,000. Although, certain lenders may be able to offer larger unsecured loans, depending on your eligibility.

Loan comparison – the lender

Another aspect you should consider when comparing personal loans is the lender themselves.

After all, certain lenders may be able to bad credit loans for Aussie borrowers, while others may be able to offer large secured loans. Therefore, consider the following when comparing personal loans:

  • Amount. Does the lender offer the amount you’re looking for?
  • Eligibility. Are you eligible to apply with the lender? Moreover, is the lender willing to consider bad credit applications?
  • Terms. Is the lender flexible in their repayment terms? Are you able to choose between weekly, fortnightly or monthly repayments?
  • Licenced. Is the lender licenced to offer credit in Australia? In addition, what do the online reviews say about the credit provider?

Personal loan comparison rate

While the interest rate is important, the advertised comparison rate may be a truer reflection of the total cost of your loan.

This is because the comparison rate takes the interest rate, plus most of the fees and charges, and calculates a single percentage figure.

Consider the below example of how comparison rates are calculated.

Personal LoanInterest rateFees & chargesComparison rate
Loan A20%0.5%20.5%
Loan B20.35%0.1%20.45%

Please note, the above table is for demonstrative purposes only. Moreover, the rates and fees you might be offered by a lender may not reflect what is presented above.

Finally, please note that comparison rates for personal loans may not include all the potential fees and charges.

Personal loan comparison – repayment terms

The repayment term is the length of time you are afforded to settle your debt. Lenders may vary in what terms they are able to offer. Generally, personal loan repayment terms range from several months to years.

Personal loans are often interest-based. Therefore, a longer-term may result in lower regular repayments, but more paid in interest and fees over time. On the other hand, a short repayment term means higher regular repayments, but less paid in interest and fees over the term.

Usually, lenders can offer a number of repayment term options. Therefore, weigh up what is important to you before making a decision.

Personal loan comparison calculator

While we’ve covered the key components that you must compare, there may be an easier way. In short, with a personal loan comparison rate calculator, you can get a quick idea of what your total costs may be.

All you need to do is find one of these free loan calculators online. From there, you just need to enter the key details of your loan (e.g. amount, rate, term) and you’ll receive estimates of your total loan costs and regular repayments. You can then use this information to compare different loans to see how they might work for your circumstances.

As a result, it can make low-interest personal loan comparison easy. Just remember though that all figures provided are estimates and you should only use them as a guide. Your actual loan costs and repayments may vary.

Variable vs fixed rate personal loan comparison

While we’ve covered many of the main factors that you should compare, one final point relates to your interest rate. In short, your rate may either be fixed or variable.

On the one hand, a fixed rate is just as the name suggests. It won’t change through the course of your loan meaning that the rate you agree to at the beginning will still be the rate at the time of your last repayment.

On the other hand, a variable rate may fluctuate over the course of your loan based on a range of underlying market factors. With this, changes may either be positive (i.e. your rate decreases) or negative (i.e. your rate increases). As a result, there is great uncertainty compared with a fixed rate.

Given this, it’s worth ensuring that you know exactly which type of personal loan rate will be applied. As a guide, most lenders will only offer fixed rate personal loans. Moreover, at Monzi, if you apply with us then you will only be paired with one of these lenders. As a result, if you’re after a variable rate loan then you may need to do your own research.

Secured vs unsecured personal loan comparison

While we’ve touched on it briefly, one of the key things that you must consider is whether you want a secured or unsecured loan.

On the one hand, an unsecured instant decision personal loan requires no security. In short, lenders are merely trusting you to make your repayments on time. As a result, they tend to be a quick and easy credit option.

A secured personal loan, by comparison, requires you to sign over an asset as security. As a guide, this may be your car, boat or caravan. If you fail to make your repayments, then your lender can potentially take steps to repossess your asset to cover their losses.

Given this, unsecured loans are usually smaller than secured loans. As a guide, lenders will offer unsecured personal loans up to $2,000. However, anything beyond this must be guaranteed by one of your assets.

One final thing to note is that unsecured personal loan rates in comparison to secured loans may be slightly higher. This is because lenders consider offering unsecured finance as risky, given that if you default on your loan, they have no way to recover their losses. As a result, lenders apply higher personal loan rates to compensate for this.

Personal loan comparison rates: risk-based or standard?

In today’s day and age, there is a great focus on personalisation. In other words, consumers want and seek products that are tailored to suit their needs. That’s what risk-based lending aims to do.

In short, with risk-based personal loans, lenders will apply an interest rate based on your profile as a borrower. In other words, if you’ve got good credit, then you may be rewarded with a lower interest rate. On the other hand, if your credit history isn’t the best, then you may need to pay a higher rate. It’s all about offering credit that reflects your circumstances.

Having said this, keep in mind that not all lenders will offer risk-based finance. While some may, others will simply charge a standard rate based on the amount that you are borrowing. As a result, do your research to determine if a risk-based loan could be an option for you.

What is the best loan to get?

There are so many variables at play that it is nearly impossible to answer this question. After all, not only to credit providers vary greatly but so too do consumer needs and objectives.

As a result, the best personal loan is one that:

  • fulfils your needs and objectives; and
  • you are able to reasonably afford.

Moreover, lenders should not offer you loans that they know you cannot afford. This is the central idea behind the responsible lending legislation. Despite this, you should always undertake a personal loan comparison yourself.

Should I get a personal loan online or through a bank?

In short, it’s up to you.

In the past, banks were typically the only place for you to get a personal loan. However, things are different now as there is a range of high-quality online lenders who may be able to provide the credit that you need now.

As a result, whether you should apply with a bank or online will be determined by your research. While both may be able to offer the loans you need, you must compare the costs and terms on offer. By doing this, you can decide which is right for you.

Which bank is best for personal loans?

Again, we cannot say.

All banks will offer a range of personal loan products. So, it’s up to you to conduct a personal loan rates comparison test. From there, you can evaluate your options and determine the one that is best for your circumstances. After all, the right loan for you may be different to the right loan for someone else.

If you’re looking for an easier way, that’s okay. There are now several simple-to-use comparison websites that can bring all the information you need into one place. As a result, you can potentially compare dozens of banks and the loans they offer in no time.

Personal loan comparison man holding tablet and paper

How can I lower my personal loan interest rate?

If you’re comparing options and looking to find the lowest possible interest rate then the good news is that there may be a few things you can do.

Firstly, if you’re a borrower with a good credit history and you have a history of making your repayments on time, you may be rewarded for this. As you are not a risky borrower, lenders may offer you lower rates thereby saving you money on interest.

However, if this is not an option for you, then you could consider applying for a secured loan. By guaranteeing your loan with an asset, lenders will face less risk. After all, they have an avenue to recover their losses should you default. As a result, lenders may offer you a more competitive rate.

Having said this though, your lender will ultimately determine your rate. Just keep these factors in mind while conducting personal loan rates comparison Australia.

Personal loan comparison rates with bad credit

If you’ve made a few credit mistakes in your past then you may feel like it will be difficult to find a lender willing to offer you a loan.

While it may be, on a positive note there are now plenty of lenders who might consider bad credit applicants. As a result, this could be a key point for you to look at when comparing loans.

With bad credit loans, rather than simply assessing your credit history, lenders will look deeper into your current financial situation. As a result, if you’ve got your budget under control, then you may be approved even with a few past mistakes.

However, keep in mind that approval is not certain. Moreover, not all lenders will consider offering finance for bad credit applicants.

Personal loan Australia comparison: do lenders offer easy approvals?

In short, some lenders may offer loans with approval criteria that aren’t quite as strict as those applied by other lenders. After all, lenders will vary in their assessment policies and qualifying criteria. As a result, these easy approval loans could be an option for borrowers who may not have perfect financial circumstances (e.g. bad credit).

Having said this, in order to apply for one of these loans, you may need to find a lender. As a result, as part of your personal loan comparison research, you may need to research lenders and their eligibility criteria to determine if you meet the requirements.

In addition to this, keep in mind that while some lenders may offer easy approvals, this is not the same as guaranteed approval. In other words, lenders will still assess your application to ensure that you can afford it. As a result, there is always a possibility that your application will be denied.

Personal loan Australia comparison for Centrelink customers

Do Centrelink payments make up some or all of your income?

It may still be possible to access loans for people on Centrelink. However, when comparing personal loan options, you must remember that lenders will treat benefit payments differently.

As a guide, while some will consider them a legitimate source of income, others will not. Moreover, lenders may view certain payment-types differently, too. Unfortunately, this can affect your eligibility.

As a result, if you are a Centrelink customer and apply for a loan, always keep in mind that approval is not certain. Lenders will assess your application to determine if the loan is suitable for your needs and situation. From there, your lender will provide you with an outcome.

What is a good personal loan comparison rate?

In short, it depends.

Not all loans will come with the same comparison rate. Moreover, certain factors related to your loan may affect the comparison rate that is applied. For instance, unsecured loans may have higher comparison rates than secured loans. As a result, it is difficult to say what a reasonable rate may be.

With this, the importance of personal loan comparison becomes clear. As rates may vary, with a bit of research, you can potentially find the best rate for your loan. As a result, you can potentially save yourself money in the long-run. Just remember though that the best rate may vary based on the loan you apply for.

Do personal loans hurt credit?

One thing that is common across all personal loans is that they can impact your credit. However, the exact effect may depend on how you manage your loan.

On the one hand, if you make your repayments when they are due and pay off your loan without any hiccups then you may see your credit score improve. After all, you will be showing that you can be a reliable borrower.

On the other hand, if you borrow more than you can afford to repay, default, miss repayments or make them late, then your credit score may be negatively affected. This may make it difficult for you to access quick cash loans in the future.

Given this, it’s crucial to only take out a loan that is suitable and affordable for your circumstances. This is one of the reasons why comparing personal loan comparison rates Australia is so important. A small saving here or there may make your loan more affordable which can help you maintain a solid repayment history.

What is the eligibility for a personal loan?

Exact eligibility and qualifying criteria will vary between lenders. As a result, it is difficult to provide specific details regarding whether or not you may be eligible. Having said this, there are a few keys things that most lenders will require.

Firstly, you must be earning some form of regular income. As a result, you will likely need to have steady employment. Having said this, some lenders may offer loans for unemployed individuals if you receive Centrelink payments. Although, availability of these loans may vary. Moreover, approval is not certain and can be difficult.

In addition to this, you will typically need to have a credit score above a certain level. While some lenders may be more prepared than others to offer loans for bad credit, there will often still be a minimum requirement you must meet. However, the exact criteria may vary.

Finally, keep in mind that there may be a host of other criteria applied. As a result, you may need to consult with a lender to determine if you may be eligible.

Personal car loan comparison

Looking to purchase a new set of wheels?

The good news is that a car loan is almost no different to a secured personal loan. As a result, you can apply the same process that you would when conducting a personal loan rate comparison.

So, do your research. Find out the terms on offer as well as the interest rate that may be applied to your loan. Then, compare your options to determine which one might be the right choice for you. Before you know it, you could be behind the wheel of your new car.

Finally, if you are looking to apply for a new car loan, then consider Monzi. Through our lender-finder service, we may be able to pair you with a lender offering these loans from $5,000 to $30,000 with repayment terms of between two and five years. Apply today.

Does Monzi offer personal loans?

No, we do not offer personal loans ourselves, but we know a heap of lenders that do.

Simply apply on our site and we’ll do our best to pair you with a potential lender. With Monzi, it’s one application and one outcome.

Finally, our network of credit providers may offer cash loans up to $10,000. Whether you need a fast cash loan to cover a breakdown or something a little larger to fund your travel dreams, Monzi has got you covered.

We may be able to pair you with a lender potentially offering the following:

  • Small unsecured loans from $300 to $2,000 repaid over 12 months.
  • Medium secured loans from $2,001 to $4,600 repaid over a 13 to 24 month term.
  • Large secured loans from $5,000 to $10,000 repaid over a 13 to 24 month term.

Finally, please note that every lender in our network is an individual entity. Therefore, we cannot speak on their behalf. The actual terms of your loan may, as a result, vary from what we present above.

Can I apply with Monzi?


However, before you begin your application, you must ensure that you are eligible. At Monzi, we have four simple boxes that you must check for your application to progress. See below for details:

  • Australia citizen or permanent resident
  • At least 18 years of age
  • Have an active contact number and email address
  • Have an online bank account with at least three months worth of transaction history

If you’re confident that you meet these requirements then you’re ready to move onto your application. Read on as we explain how easy it is to apply with Monzi.

How do I apply?

At Monzi, we’ve ensured that our application process is as simple as possible for you. That way, you can apply and get on with your day sooner. After all, nobody wants to spend their free time trying to apply for a loan.

So, when you’re ready to begin, just follow these steps:

  1. Choose your loan amount and repayment term (note that loans under $2,000 come with fixed 12-month repayment terms).
  2. Enter the necessary personal details and complete Monzi’s application form. Hit ‘submit’.
  3. Wait while our automated system attempts to pair you with an available lender from our network. Apply during business hours and you might be matched with a lender in just 60 minutes.
  4. We’ll inform you of your outcome. If we are able to match you with a lender then they will contact you to begin the assessment process.

What information must I provide?

In short, lenders need you to provide a number of personal and financial details in order to assess your application. Based on the information that you provide, they can get an idea of your current financial situation from which they can determine whether or not you should be offered a loan.

Failure to provide any key details may result in your assessment being delayed or your loan being denied. So, before you begin, make sure that you can supply the following:

  • Personal details: name, address, contact number, etc.
  • Online banking details
  • An estimate of your current expenses
  • The amount you need to borrow and your ideal repayment term
  • Your reason for applying
  • Centrelink payment details
  • Any other information that may be relevant

What do lenders assess?

In short, lenders are looking to assess your capacity to repay your loan. That is, will you be able to make your repayments without difficulty and can they trust you to do so?

With this, lenders will typically focus their assessments on the following factors:

  • Your credit history and credit score: based on an assessment of your credit report (i.e. a credit check), lenders can determine your creditworthiness. In other words, how reliable are you as a borrower?
  • Your current budget: by comparing the balance between your income and expenses, lenders will be able to determine what you can potentially afford to repay. As a rule, lenders cannot offer you a loan that you is unsuitable for your current needs and financial circumstances.
  • The loan you’ve applied for: lenders can compare your ideal loan and the associated repayments to your current budget and what you can afford. With this, they can determine if it will be affordable for you.

Will I receive an outcome on the same day?

Yes, potentially.

With Monzi, if you apply during business hours then we may be able to match you with a lender in just 60 minutes. From there, your lender will contact you to complete an assessment. If everything goes to plan and you’ve provided all the necessary details then it’s certainly possible to receive an outcome on the same day.

However, whether or not you will receive your cash on the day you apply is a different story. If you are approved, then your lender will transfer the money to you. At that point, when you have access to your cash will be determined by the relevant interbank transfer times.

As a result, we cannot guarantee if you will be able to access same day loans as it’s out of our hands. However, if you apply during business hours then it’s certainly possible to receive a fast outcome.

Contact Monzi

Still unsure about personal loan comparison interest rates or anything else related to applying for quick cash loans?

Get in touch.

Contact us at and one of our customer service team members will do what they can to return your email with a prompt and thorough response. Just remember that for the quickest possible response, it’s best to reach out during business hours.

Finally, keep in mind that Monzi can only answer questions about our lender-finder service. As a result, contact your lender directly for information regarding loans you’ve taken out, the products they offer or the terms that may be applied. We cannot speak on behalf of other organisations meaning we will be unable to answer questions regarding these topics.

Personal loan comparison – ready to apply?

Considering using Monzi’s lender-finder service? Great! Everything happens online; scroll up to the loan slider to begin. Alternatively, read our guide to comparing debt consolidation loans.

Find more Monzi on Facebook, Instagram, Twitter and Pinterest.

Factor In


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


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.