Personal Loan Rates Australia With Monzi

Personal loan rates Australia – learn how rates are calculated as well as ways you might be able to get a more competitive rate. Intrigued? Read on. Monzi’s compiled this comprehensive guide covering all the details you might need to know. 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 are personal loan rates Australia?

Personal loan rates simply refer to the interest rate charged on your loan. In short, your rate determines the amount of interest you will pay, calculated as a percentage of your outstanding loan balance.

This rate stays the same through the course of loan. That means that your interest payments will slowly shrink, as the balance of your loan is reduced.

Given that the rate calculates how much interest you will pay, it’s usually best to find the lowest rate possible. That way you can minimise the interest you have to pay. Over the course of your loan, this may save you money. Despite this, there are a number of other factors you should also consider.

So, know that we know what personal loan rates Australia are, we can dig deeper into the details. Let’s go.

What determines personal loan rates Australia?

Interest rates aren’t one size fits all. Instead, lenders will consider a number of factors in order to calculate the interest rate that you will be offered.

These considerations may include:

  • Your credit history: If you’re a reliable borrower then lenders may offer more competitive rates. On the other hand, really bad credit loans may attract higher personal loan rates Australia.
  • Secured or unsecured: lenders consider unsecured loans riskier. As a result, if you are willing to secure your loan with an asset then you may be able to access lower rates.
  • Your loan amount: the maximum interest rate charged on a small loan may be different than a large loan due to lending regulations.

What are the lowest personal loan rates Australia?

Monzi cannot say what the lowest interest rate is. After all, there are a number of factors at play. However, if you are a looking to access a low interest rate then we may have a few useful tips.

First of all, if you’re looking to access low rates then having good information on your credit report can help. If, in the past, you’ve been a reliable borrower then lenders will consider you to be less of a risk. As a result, you may be offered more competitive rates.

However, unfortunately, not everyone has good credit. Luckily, there’s another option. If you are willing to secure your loan with an asset, lenders may be prepared to offer a lower interest rate. This is because lenders consider secured loans less risky.

So, consider these options if you are looking to access the best rate for your situation.

What is a good interest rate on a personal loan?

This will depend on your loan and financial situation. As a result, a good interest rate may differ from borrower to borrower.

In any case, lower is usually better. With this, comparing loans and lenders to find the lowest interest rate is never a bad idea. As a result, don’t just accept the first loan you are offered. Instead, try to find the best deal that comes with manageable repayments, low rates and is offered by a trustworthy lender.

After all, saving money on interest is cash that goes straight back into your pocket.

How much would a monthly repayment on a $5,000 loan be?

This will depend on the personal loan rates Australia applied to your loan as well as the repayment period. As a result, we are unable to provide you with an answer.

To make this more clear, a $5,000 loan will come with repayment terms ranging from 13 to 24 months. Obviously, the monthly repayments on a loan with a 13 month repayment period will be significantly greater than those for a 24 month period.

Moreover, you may be able to make extra repayments free of charge.

Even with the repayment periods being equal, interest rates can differ depending on your financial situation and the lender you are dealing with.

To give you an idea of what your repayments may be, consider using an online loan calculator such as the one provided by the Moneysmart website.

Enter your loan details (amount, rate, period) and you’ll receive non-binding estimates of what your repayments and total loan cost may be.

Are personal loans a bad idea?

Personal loans are a bad idea if you fail to take the proper precautions. Borrowing more than you can afford to repay can result in missed repayments, hits to your credit score or default.

In this case, they would be a bad idea.

However, it’s not always bad news. In fact, personal loans may be a useful financial tool.

If you are in the midst of a cash shortfall and have limited options, personal loans may be able to provide the cash you need. Not only that, this amount is divided into a series of manageable repayments so you can spread the costs to reduce your burden.

However, this is contingent upon you only borrowing what you can afford. Your repayments must fit comfortably with your current budget. Do this and personal loans may not be a bad option.

Are online loans safe?

Yes. However, there are potential hazards.

While there are many licenced and trustworthy lenders out there, it’s also true that there are a few subpar lenders who may not do things by the book.

That’s where using a lender-finder service like Monzi can be valuable. Over time, we’ve developed a network of reputable lenders. Apply and we may be able to pair you with one such available lender in just 60 minutes.

Not only is it simple but you can be sure that your lender will be responsible too. Sounds good, right?

Apply now.

Can you pay off a loan early?

Yes.

Most lenders will offer the option for you to pay off your loan early, allowing you to be debt-free sooner. So, if you’ve got the savings to do it, then it may be a worthwhile option. After all, breaking free from debt is never a bad idea.

However, one thing to consider is that lenders may apply an early exit fee. This is an additional charge added to your loan cost and will be listed in your loan agreement.

As a result, if you do opt to pay off your loan early ensure you have the cash to cover the outstanding balance of your loan plus any additional fees.

Can you get a personal loan without a job?

Yes, you can potentially get a personal loan without a job. However, that comes with a significant condition.

In short, you will need to prove that you are earning income in some form. While this will not be a wage, it could include rent received from an owned asset or even Centrelink benefit payments.

If you earn zero income then unfortunately, your application will be ineligible for a personal loan and your application will not be approved. After all, you must have the capacity to repay any money that you borrow.

Even if you do prove that you are earning some income, approval is still not certain. Some lenders may not be willing to consider your application at all if you are unemployed.

Personal loan rates Australia comparison

While the interest rate is one element to a loan, there are a number of other factors to consider in order to decide if a loan is right for you.

Like with any product, it pays to shop around and compare loans. Finding the right deal might save you money in the long-run. That’s money you can put straight back into your savings.

So, before agreeing to a loan, compare the following features:

  • The interest rate
  • Fees and charges (e.g. establishment fees or late payment charges)
  • Comparison rate: includes the interest rate and fees to give you an idea of your total loan cost.
  • The amount you can borrow: some lenders may only offer loans up to a certain amount (e.g. small $2,000 loans).
  • Repayment terms: is there flexibility? Can you pick repayments to suit your circumstances?
  • Who is the lender: do they have a history of treating their borrowers well?

Consider the above when comparing loans in Australia.

Personal loan rates Australia woman using white tablet

Personal loan rates Australia: payday vs personal

When you’re looking for a loan, you might have to choose between a payday or personal loan. So, what’s the difference?

First of all, payday loans are usually small (up to $2,000). They’re about speed and getting you cash ASAP. Moreover, repayment periods are rapid while the associated interest rates and fees are often high.

On the other hand, personal loans tend to be larger (up to $10,000). Lenders will work to provide you with quick outcomes, while your repayments are usually spread over a longer period. Not only that, the rates and fees are usually lower often making them a more manageable option for borrowers.

Personal loan rates Australia amounts and features

Given that personal loans may range from $300 to $10,000, lenders opted to divide them into three separate categories. Each will differ slightly not only in their features but in the interest rate charged too.

As a result, it’s important to understand which loan you will be applying for before you begin. See the table below for the breakdown.

LoanAmountRepayment terms
Small loan$300 to $2,00012 months
Medium loan$2,001 to $4,60013 to 24 months
Large loan$5,000 to $10,00013 to 24 months

Bear in mind, lenders may vary in the repayment terms they offer.

Personal loan regulations

Australia has placed a number of restrictions on lenders to ensure that borrowers are treated fairly.

These restrictions include a cap on the fees and rates as well as assessment requirements.

In short, lenders are required to assess your financial circumstances in order to determine if the credit you have applied for is suitable. Assessments involve lenders meeting three obligations:.

  1. The lender must make reasonable inquiries into the borrower’s financial situation.
  2. They must then take reasonable steps to verify this information.
  3. Based on this information, the lender must provide a final assessment as to whether the credit is suitable for the borrow.

From this, lenders will provide you with an outcome. Ultimately, these steps exist to protect borrowers. If lenders comply with their responsibilities, you should not be an offered a loan that is unsuitable for your circumstances.

Personal loan rates Australia with Monzi

At Monzi, we’re a lender-finder service. In short, we match Aussie borrowers with a host of great lenders. Submit one simple application and we may be able to pair you with a great lender in just 60 minutes.

Access anything from smart little loans all the way up to $10,000. Get the cash you need now and repay it over the coming months or years. There’s no paperwork and it’s 100% online.

Lodge a loan enquiry today.

Alternatively, learn about loans for small businesses or how you may be eligible for a trade support loan.

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.