Best Personal Loan Rates in Australia (2026)

Best Personal Loan Rates in Australia - March 2026

Finding the right personal loan can save you thousands in interest, whether you're consolidating debt, renovating your home, funding a holiday, or covering an unexpected expense. But rates vary widely - from 6.19% - 19.99% p.a. - depending on your credit history, income, loan amount, and whether you offer security.

We track 18 personal loan products from 9 lenders across Australia, updating daily so you can compare with confidence. Below, we break down the best rates available right now and explain exactly what affects the rate you'll actually receive.

Important: Personal loan rates are advertised as ranges. The rate you're offered depends on your individual circumstances - including your credit score, income, employment status, and loan amount. The lowest advertised rate is not guaranteed.

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Best Personal Loan Rates Right Now

Rates currently start from 6.19% p.a., with the best overall range sitting at 6.19% - 19.99% p.a.. The comparison rate range across top products is 7.03% - 20.78% p.a..

The table below shows the top personal loans ranked by advertised rate. Remember, the rate you receive may differ based on your profile.

How to read these rates

• Advertised rate - the headline interest rate range. Your actual rate sits somewhere in this range.
• Comparison rate - includes most fees and charges, giving a truer picture of cost. Learn more in our guide to comparison rates.
• Secured vs unsecured - secured loans use an asset (like a car) as collateral and typically attract lower rates.

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Best Secured Personal Loans

If you can offer an asset as security - most commonly a vehicle - you'll generally access lower rates. Secured personal loan rates currently start from 6.49% - 12.99% p.a..

Why secured loans are cheaper

Lenders take on less risk when a loan is backed by an asset. If you default, they can repossess the security to recover their losses. This reduced risk translates directly into lower interest rates for you.

Trade-off: Your asset is at risk if you can't make repayments. Make sure you're comfortable with this before choosing a secured loan. Secured loans may also have restrictions on the age and type of asset you can use as security.

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Best Unsecured Personal Loans

Unsecured personal loans don't require you to put up an asset as collateral. Rates are typically higher - currently from 6.19% - 19.99% p.a. - but your property and possessions aren't directly at risk if you fall behind on repayments.

When to choose unsecured

• You don't own a suitable asset to use as security
• You want a simpler, faster application process
• You're borrowing a smaller amount where the rate difference is less significant
• You prefer peace of mind knowing no specific asset is tied to the loan

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How Personal Loan Rates Work

Understanding how lenders set rates helps you negotiate a better deal and avoid surprises.

Advertised rate vs actual rate

Most personal loan rates are risk-based, meaning the lender advertises a range (e.g. 6.99% – 15.99% p.a.) and then assigns you a specific rate based on your application. The advertised lowest rate is only available to applicants with excellent credit and strong financials.

Comparison rates

The comparison rate folds in most standard fees - such as establishment fees and monthly account-keeping fees - to give you a single percentage that's easier to compare across lenders. However, it assumes a specific loan amount and term (typically $30,000 over 5 years), so it may not perfectly reflect your actual cost.

Fixed vs variable

Most personal loans in Australia are fixed rate, meaning your repayments stay the same for the life of the loan. Some lenders offer variable rate personal loans, where the rate can change in line with the RBA cash rate (currently 3.85%) or at the lender's discretion.

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What Affects Your Personal Loan Rate

Several factors determine where you land within a lender's rate range:

Credit score

Your credit score is the single biggest factor. A score above 700 (on the Equifax scale) generally qualifies you for the lower end of the range. Missed payments, defaults, or multiple recent applications can push your rate higher. See our credit score guide for tips on improving yours.

Income and employment

Stable, verifiable income - especially from full-time employment - signals lower risk. Self-employed borrowers or those with irregular income may face higher rates or stricter conditions.

Loan amount

Lenders typically offer personal loans from $$2,000**** up to $130,000. Some lenders offer better rates for larger loan amounts, while others have sweet spots in the $10,000–$30,000 range.

Loan purpose

Certain purposes (like debt consolidation or home improvement) may attract different rates than others (like holidays or weddings). Some lenders have specific products for car purchases or debt consolidation.

Secured vs unsecured

As covered above, offering an asset as security typically reduces your rate by 1–4 percentage points compared to an equivalent unsecured loan.

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Fees to Watch

Interest isn't the only cost. Before committing, check these common personal loan fees:

[!TIP] Always check the comparison rate, which bundles most of these fees into a single figure. A loan with a low headline rate but high fees can end up costing more overall.

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Personal Loan vs Other Borrowing Options

A personal loan isn't always the best way to borrow. Here's how it compares:

Personal loan vs credit card

For smaller amounts under $5,000, a 0% purchase credit card or low-rate card might work out cheaper - provided you pay it off within the interest-free period. For larger amounts or longer repayment timeframes, a personal loan's structured repayments and lower rates usually win. Compare options in our credit card guide.

Personal loan vs car loan

If you're buying a vehicle, a dedicated car loan vs personal loan comparison is worth reading. Car loans are secured against the vehicle and often offer lower rates, but the car must meet the lender's criteria (age, type, value).

Personal loan vs buy now, pay later

BNPL services suit small, short-term purchases but become expensive if you miss payments. For anything over a few thousand dollars, a personal loan is almost always cheaper and more transparent. See our BNPL vs credit card comparison for more detail.

Personal loan vs home equity

If you own property, drawing on your home loan's redraw facility or using a line of credit may offer lower rates (since it's secured by property). However, you're extending your mortgage term and putting your home at greater risk.

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How to Apply for a Personal Loan

1. Check your eligibility

Most lenders require you to:

• Be at least 18 years old
• Be an Australian citizen, permanent resident, or hold an eligible visa
• Have a regular income (minimum thresholds vary by lender)
• Have a satisfactory credit history

2. Gather your documents

You'll typically need:

• Proof of identity - driver's licence, passport, or Medicare card
• Proof of income - recent payslips (2–3), tax returns, or bank statements
• Proof of expenses - bank statements showing your living costs
• Loan purpose details - quotes, invoices, or details of what you're borrowing for
• Asset details (for secured loans) - registration papers, valuation, or purchase contract

3. Compare and apply

Use our personal loan comparison page to filter by rate, loan amount, and loan type. Many lenders offer online applications with conditional approval in minutes.

4. Settlement

Once approved, funds are typically disbursed within 1–5 business days. Some online lenders can settle same-day for straightforward applications. For secured loans, settlement may take longer as the lender needs to register their interest over the asset.

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Tips for Getting a Better Rate

1. Check your credit report before applying - fix any errors and pay down existing debts
2. Apply to one or two lenders only - multiple applications in a short period can hurt your credit score
3. Consider security - if you have an eligible asset, a secured loan could save you significantly
4. Borrow only what you need - a smaller loan amount reduces your total interest cost
5. Choose the shortest comfortable term - longer terms mean lower repayments but much more interest overall
6. Negotiate - if you have a strong profile, ask the lender if they can do better on the rate