Personal Loan Interest Rates – How Much Will A Loan Cost?

Personal loan interest rates may determine your loan costs on top of what you borrow. With this, it may be important to find a low rate. That’s why Monzi’s here to explore interest rates in-depth. We’ll cover everything that you may need to know to access a competitive rate. Keen to apply for a personal loan? Try Monzi. Apply from $300 to $10,000 now.

Personal loan interest rates Australia

When you take out a loan, you must pay interest. It’s simply the cost of borrowing money. With this, it’s important to understand personal loan interest rates and how they are applied. From there, you may be able to find the best loan rates to save yourself money in the long-run.

To keep it simple, interest is charged on your outstanding loan balance. Usually, your lender will list your interest rate as an annual percentage. That said, it will be charged on a weekly, fortnightly or monthly basis, depending on how frequently you make your repayments.

Finally, note that a lower interest rate is usually better. After all, that will reduce your interest payments. That way, you can pay off more of your principal balance sooner.

Satisfied that you understand the basics? Read on to learn more about personal loan interest rates and what you may need to know. Let’s go.

Personal loan interest rates comparison

In order to find the best rates, comparing your options will be key. After all, if you simply settle for the first loan that you find, you have no idea what else is out there. As a result, you may be missing out on a lower rate offered by a different lender.

Luckily, it’s not too difficult to compare your options. One easy way to do this could be to use an online comparison website. In short, these sites allow you to assess a range of different lenders based on the products they offer. From there, you can select the one that provides the most suitable terms for you.

Where can I find the best personal loan rates?

That’s the age-old question. If you can find the best rates, then you can cut out the hassle. Just go straight to that lender and apply. Unfortunately, though, Monzi cannot say with certainty which lender will offer the best personal loan rates. After all, we’re just a lender-finder who may match you with an Aussie credit provider when you need a loan.

In any case, to find the best rate, you must do your research. By searching online and comparing a range of different options, you may find the lowest rate. However, it’s worth noting that the interest rate may not be the only factor worth considering. For example, lenders may charge fees too, which may impact your costs beyond your interest payment.

Banks and personal loan interest rates

Between online lenders, banks and other financial institutions, you’re spoilt for choice when you need to apply for a personal loan. With this, it’s up to you to decide which option is best.

As a guide, bank loans generally may be offered for larger amounts. For example, while online lenders may only offer up to $10,000, banks could offer large personal loans up to $30,000 or $50,000. However, they may not be as accepting when it comes to less-than-ideal circumstances such as bad credit.

In any case, before you apply, it’s worth investigating personal loan interest rates offered by banks. Realistically, you shouldn’t rule out any option. Find the best deal. Compare online lenders and banks, then apply for the most suitable and affordable option for you.

Secured and unsecured personal loan interest rates: are they different?

Yes, often they will be.

With a secured loan, you must provide one of your assets as security to guarantee the loan. Usually, this will be your car. However, it could be your boat, caravan or motorcycle too. While you’re free to continue using your vehicle while you repay your loan, if you default on your repayments, then your lender may take steps to repossess it. That way, they can potentially recover their losses.

On the other hand, with an unsecured loan, you don’t need to make this commitment. Instead, you just need to repay whatever money you borrow until your loan balance is paid off.

Given this, unsecured loans present more risk for lenders than secured loans. As a result, your lender may charge higher interest rates on unsecured loans to account for this. So, to answer the initial question, unsecured loan rates may be different from secured loan rates.

Through Monzi, you can apply for unsecured personal loans from $300 to $2,000 or secured loans from $2,100 to $10,000.

Personal loan interest rates vs comparison rates

When comparing loans, one key distinction that you must make is the difference between the personal loan comparison rate and interest rate. While both are listed as percentages, they represent different things.

Firstly, lenders use your interest rate to calculate how much interest you must pay annually on your outstanding loan balance. This is then added to your principal repayments.

On the other hand, your comparison rate combines your interest rate with most additional fees and charges to provide an annualised percentage of your total loan costs. In other words, it reflects how much you must pay each year on top of what you borrow. As a result, it’s there to give you a more accurate reflection of your costs. Moreover, lenders are required by law to display the comparison rate on all loans they offer.

Given this, while your interest rate may be important, looking at the comparison rate is crucial. This is particularly true when comparing two or more loans. By comparing loans based on their comparison rate, you may determine which is cheaper on an annual basis.

How can I get lower personal loan interest rates?

At Monzi, we’re not a lender. As a result, we cannot say with certainty how you may be able to access a lower rate. That said, there are a couple of things that may help.

Firstly, if you have good credit, lenders usually see that as a positive. After all, it’s less risky to lend you money than it is to offer loans for people with bad credit. Given this, in some cases, you may be rewarded with a more competitive rate. However, this is at your lender’s discretion.

Beyond this, if your credit score isn’t where it needs to be, then you could apply for a secured loan. By guaranteeing the loan, your lender faces less risk. As a result, you may be offered lower rates on a secured loan than an unsecured loan. However, remember that you may need to borrow more with a secured loan.

Can Monzi find me the cheapest rates?

Unfortunately, we cannot.

Monzi is a lender-finder. In other words, we aim to match you with a lender in a quick and convenient fashion. Through our service, you may be able to access instant cash loans from $300 to $10,000. Best of all, you can apply in minutes. As a result, you can avoid the hassle of trying to find a lender yourself.

However, as we are not a lender, cannot say with certainty what rate you may be offered on your loan. Ultimately, this will be determined by your lender if you are offered a loan. This will then be outlined to you in your loan contract.

That said, as a guide, you can check out Monzi’s Costs page. Alternatively, use the loan slider at the top of the page to select your preferred loan and repayment term. From there, the slider will produce estimates of what your weekly, fortnightly or monthly repayments may be.

How much will a personal loan cost?

Your total loan costs will be equal to the difference between the amount that you repay and the initial principal amount that you borrowed. The difference between the costs will be determined by your interest rate and any fees that your lender charges.

Given this, Monzi cannot say how much your personal loan will cost. In short, you must calculate that based on the initial amount that you borrowed and how much you repaid. That said, as a guide, costs will often be high. As a result, while a personal loan may help you cover a cash shortfall, the costs can add up over time.

Other than the interest rate, what else should I consider?

The interest rate on your loan should be an important consideration when deciding whether to apply. After all, it will determine how much you repay on top of what you borrowed. However, there are many other factors that you may need to consider as well to determine if the loan is right for you. As a guide, this may include:

  • Fees: interest isn’t the only loan charge. Lenders may apply fees too. Examples may include establishment fees or annual fees. Ensure you factor any additional charges into your costs.
  • Terms: can you repay your loan over a period that is manageable and affordable for your budget? With Monzi, your repayment term may range from 12 to 24 months, depending on the amount you borrow.
  • Secured or unsecured: loans under $2,000 are unsecured. Loans over $2,000 are secured. If you do not own an asset that can be used as security, then you may have no choice but to apply for an unsecured loan.
  • The lender: read users reviews online to see how the credit provider has treated borrowers in the past.

To learn more, check out Monzi’s guide to comparing personal loans.

Can I apply with Monzi?

Every day, Monzi receives applications from Aussies all over the map. With this, our applicants come from a range of different backgrounds. In short, this is what we love. We’re a lender-finder designed to help Aussies find lenders in a quick and convenient manner.

That said, we do have a few criteria that you must meet before you begin your application. In other words, ensure you can tick the following boxes:

  • Australian citizen or permanent resident.
  • At least 18 years old.
  • Have an active email address and mobile number.
  • Have an online bank account, where your income has been deposited for the last 90 days.

If you are not eligible, then your application will not progress. If you are eligible, then you’re free to move on and apply.

How do I apply?

So, Monzi is the lender-finder service that’s right for you. Great to hear!

Once you have confirmed that you are eligible, then the only thing left to do is apply. With this, Monzi has made it easy for you. All you need to do is follow these quick steps:

  1. Use Monzi’s loan slider to choose a suitable loan amount and repayment term (if applicable).
  2. Follow the prompts to complete Monzi’s online application by providing the necessary personal and financial details (e.g. online bank details, name, address, etc.). Then, hit ‘Submit.’
  3. We’ll take it from here. Once we receive your completed application, we’ll do our best to match you with an Aussie lender from our extensive network.
  4. Keep your phone close by because we will contact you with an outcome. If you apply during business hours, we may be able to match you with a lender in just 60 minutes. From there, your lender will contact you to begin the assessment process.

Note that we cannot guarantee if your application will be successful. At Monzi, we’ll always do our best to help you. However, as we are not a lender, we cannot say if your application will be approved.

Man in white shirt thinking about personal loan interest rates

Do lenders offer fixed or variable rates?

Fixed interest rates will not change through the course of your loan. As a result, if you are approved, then the rate listed in your loan contract will remain constant. That way, you know exactly how much you must repay.

On the other hand, variable rates, as the name suggests, are liable to change. In short, lenders usually tie these rates to certain underlying economic factors (e.g. inflation). If your rate increases, then you must pay additional interest. However, if rates decrease, then you may save on interest.

If you apply with Monzi and we match you with a lender, then you will only be offered a fixed-rate personal loan. In other words, your costs are locked in for the course of your loan. As a guide, variable rates are more common on home loans or car loans.

How do I check my personal loan interest rate?

If Monzi matches you with a lender, then that lender will contact you. In short, they will conduct an assessment to determine if they should offer you a loan. Assuming you are approved, your lender will send you a digital loan contract.

This contract is a crucial document. As a guide, it will outline all of your loan’s terms, conditions and costs. Given this, within the document, you should find your personal loan interest rate listed.

Ultimately, you must read your loan contract carefully. Make sure that you have a clear understanding of the costs and terms. If you are unhappy with any aspect of the proposed loan, then contact your lender. Don’t agree to a loan simply because a lender offered it to you. Instead, carefully consider whether it is right for you before you sign the contract.

The rate is too high: what should I do?

So, a lender offers you a loan, but the interest rates are simply too high. In these situations, it’s best to not agree to the loan. Instead, contact your lender and inform them that you no longer wish to proceed with your application. From there, your lender will cancel your application.

Ultimately, just because a lender offers you a loan does not mean you are obligated to accept it. While quick money loans today may help you work yourself out of a bind, you must make on-going repayments for up to 24 months. As a result, if the costs are too high or the repayments don’t suit your budget, then it may be wise to consider alternatives.

Is there an easy way to compare personal loan rates?


These days, there is so much information available for consumers. As a result, if you do your research, then you should be able to make an informed decision as to which personal loan is right for you.

With this, one key resource may be comparison websites. In short, these websites allow you to compare loans side-by-side based on their terms, rates or costs. As a result, you can avoid the hassle of scoping out many different lenders to get an idea of their costs. In other words, it’s all done for you.

While that may be one option, keep in mind that Monzi is not a comparison website. Given this, you must do your own research. However, if you want a stress-free option, then why not apply with us. In short, we may be able to match you with a lender offering easy loans from $300 to $10,000. Apply today.

Should I use a personal loan calculator?

Personal loan calculators are another handy resource that borrowers can use to determine their costs before applying for a loan. As a guide, lenders and other financial institutions offer these calculators for free through their websites.

With a loan calculator, you must enter some key details. Usually, this will include your loan amount, interest rate and repayment term. The calculator will then generate estimates of your total costs and repayment amount. As these calculators are adjustable, you may be able to change one of your inputs (e.g. reduce your interest rate) to see how that may impact your costs.

Given this, using a loan calculator may be a great first step before you even think about applying. You may be surprised at just how much interest you’ll have to pay. However, remember that all figures will be estimates.

Credit cards vs personal loans: which is better?

Credit card rates and their personal loan counterparts are often compared. However, credit cards and personal loans may serve different functions. As a result, you must consider your current financial situation to determine which option is right for you.

On the one hand, people typically use personal loans online to cover significant, one-off purchases (e.g. paying vet bills). With this, you borrow the cash you need to address your shortfall and then repay that money via a series of repayments. Once your loan balance hits zero, there’s no further obligation.

On the other hand, credit cards may be a better option if you’re looking to manage on-going cash flow issues. In other words, if you’re getting paid next week but need to make a purchase today, then you may use your card. Then, once you receive your income, simply pay off your outstanding balance to avoid interest charges. As a result, finding the best credit card can provide you with a useful financial tool so long as you manage it effectively and avoid the pitfalls of credit card debt.

Given this, while it’s important to consider the costs, choosing between a credit card and personal loan may come down to your needs and objectives.

If you choose to apply for a personal loan, then turn to Monzi. Apply for fast cash loans from $300 to $10,000 today. We may be able to match you with a lender in just 60 minutes. Let’s go.

What about car loans and home loans?

If you are looking to purchase a home or car, then you may notice that both car loans and home loans come with interest rates that are significantly lower than the rates on personal loans.

As a guide, this may be due to the fact that car and home loans are usually much larger than personal loans. As a result, even a low home loan rate can lead to the borrower paying a significant amount of interest.

In addition to this, the home or vehicle is used as security on the loan. As a result, lenders may face less risk than if you were taking out an unsecured personal loan. That way, they can offer lower rates on these products.

Are there any other options besides personal loans?

Of course.

Personal loan interest rates are often substantial. As a result, the cost of a quick loan may outweigh the convenience. Given this, you may be seeking an alternative. Luckily, there may be some other options out there to help you access the cash you need.

Firstly, you could consider using a buy, swap and sell website. Through Facebook Marketplace, you can sell that old TV cabinet or unused couch to make a bit of extra cash. If you’re lucky, you may even make enough to address your current cash shortfall.

Next, you could consider picking up odd jobs. Some companies may offer rewards for completing reviews and providing feedback. Alternatively, apps like Airtasker could connect you with people in your local area, offering cash for jobs such as ironing or assembling furniture.

Finally, if you are a low-income earner, then you may be eligible for the No Interest Loan Scheme, intended to provide safe and affordable access to credit. You may use these loans to cover a range of necessary expenses (e.g. new washing machines). However, there are a number of criteria that you must meet to be eligible.

Can I get personal loans with bad credit?


Bad credit loans may seem hard to come by, given that traditional lenders often won’t give you a second look. However, Monzi knows a few lenders who may be able to help.

For this to be possible, these lenders won’t focus their attention solely on your battered credit report. Instead, they aim to look at the bigger picture. By considering your current financial situation too, they may develop a clear understanding of your capacity to repay your loan.

Ultimately, if you show that you have your budget under control, then lenders may consider approving you for bad credit cash loans. However, remember that approval is not certain. Moreover, loans for bad credit may come with additional costs to offset the risk associated with lending to an unreliable borrower.

In any case, if you need a loan today, apply from $300 to $10,000 with Monzi. We’re ready and waiting to hear from you.

What about on Centrelink?


At Monzi, we aim to help as many Aussies as we can. As a result, if you’re a Centrelink benefit recipient, the good news is that you’re still welcome to apply. From there, we’ll do our best to match you with a lender who may offer the loans on Centrelink that you need.

That said, keep in mind that lenders are not unified in their approach to Centrelink payments. While some credit providers may accept them as an income source, others may not. Moreover, beyond this, to be approved for a loan on Centrelink, you must show that you could comfortably afford the loan repayments.

Finally, if you do receive Centrelink, then you must consider whether a personal loan is appropriate for your circumstances. As we’ve mentioned, high personal loan interest rates mean that the costs can be significant. Given this, if you are a low-income earner, then it may be best to investigate other options. Otherwise, a loan and the associated repayments could put a strain on your budget.

Who can I talk to about borrowing?

If you have any questions about Monzi or our lender-finder service, reach out today at and we’ll do our best to get back to you ASAP. However, as we are not a lender, we cannot answer questions regarding your exact costs or the loans you may be offered.

In any case, for more information regarding whether a loan is right for you, check out Moneysmart’s guide to personal loans today. There you should find a detailed breakdown of all the information that you may need to consider.

Finally, if you find yourself in debt and struggling to meet your repayments, then it may be best to contact the National Debt Helpline on 1800 007 007. Between the hours of 9:30am and 4:30pm, Monday to Friday, you may be able to access free advice from a qualified counsellor to help you get on top of your finances.

Personal loan interest rates: apply with Monzi today

Get a loan today!

Monzi could match you with an Aussie lender offering fast cash loans from $300 to $10,000. Borrow the money that you need today and repay it over the coming 12 to 24 months. Best of all, if you’ve got bad credit or are a Centrelink recipient, you’re welcome to apply. Monzi’s a lender-finder for Aussies. Apply now.

Scroll up to Monzi’s loan slider or click on the ‘Apply Now’ icon. Once you submit your application, we’ll get to work. You may receive an outcome before you know it.

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Factor In


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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.