Move Personal Loan – Escape High Rates Fast (2026)

Are you feeling trapped by your current personal loan? Perhaps you've found a better rate elsewhere or your financial situation has changed, making your current repayment plan less than ideal. If you're wondering, "Can I move my personal loan to another bank?" you're not alone. Many Australians consider refinancing their personal loans to take advantage of better terms. This guide will help you understand how to make the switch, what to look out for, and how to ensure you're getting the best deal possible.

Understanding Moving Personal Loans

When you move your personal loan to another bank, you're essentially refinancing your debt. This means you're taking out a new loan to pay off the existing one. The primary goal is to secure a loan with more favourable terms, such as a lower interest rate, reduced fees, or more flexible repayment options. This can help you save money in the long run and make managing your finances easier.

Refinancing isn't just about finding a lower interest rate; it's about ensuring the new loan aligns better with your current financial goals and circumstances. Whether you're looking to reduce monthly payments, shorten your loan term, or consolidate debts, moving your personal loan could be a strategic move.

Current Personal Loan Options and Rates

In 2026, the Australian financial market offers a variety of personal loan options with competitive rates. Interest rates for personal loans typically range from 6.49% to 12%, depending on factors such as your credit score, the loan amount, and the term of the loan. It's essential to shop around and compare offers from different lenders to ensure you're getting the best deal.

Eligibility criteria can vary from lender to lender, but common requirements include a stable income, a good credit history, and Australian residency. Some lenders may also require a minimum credit score or a certain level of savings.

At Esteb and Co, we have access to 83+ lenders, allowing us to help you find a loan that best suits your needs. Our extensive panel means more options and potentially better rates for you.

Steps to Move Your Personal Loan

Moving your personal loan to another bank doesn't have to be a daunting task. Here's a step-by-step guide to help you navigate the process:

1. Evaluate Your Current Loan: Understand the terms of your current loan, including the interest rate, fees, and any penalties for early repayment.
2. Check Your Credit Score: A healthy credit score can help you secure better rates. Obtain your credit report and address any issues before applying for refinancing.
3. Research New Loan Options: Compare offers from different lenders. Consider interest rates, fees, and additional features that could benefit you.
4. Calculate Potential Savings: Use a loan calculator to estimate how much you could save by refinancing. Consider both monthly savings and overall savings across the life of the loan.
5. Apply for the New Loan: Once you've chosen a lender, submit your application. Be prepared to provide documentation such as proof of income and identification.
6. Pay Off the Existing Loan: Once your new loan is approved, use the funds to pay off your existing loan. Ensure you understand any fees involved in closing the old loan.
7. Set Up Repayments: Arrange for automatic payments on your new loan to avoid missing any due dates.

Expert Tips and Considerations

Here are some tips to consider when moving your personal loan:

• Consider Total Costs: Don't just look at the interest rate. Consider the overall cost of the loan, including any fees or charges.
• Be Wary of Introductory Rates: Some loans offer low introductory rates that increase after a set period. Understand the terms before committing.
• Watch Out for Penalties: Some loans have hefty penalties for early repayment. Ensure these won't outweigh any benefits from refinancing.
• Consult a Professional: A mortgage broker, like those at Esteb and Co, can offer personalised advice and help you navigate the options available from our extensive lender panel.
• Stay Informed: Keep an eye on market trends and interest rate movements. This knowledge can help you make the best decision for your financial situation.

Frequently Asked Questions

1. Can I move my personal loan if I have a bad credit score?
   Yes, but options may be limited, and you might face higher interest rates. It's advisable to improve your credit score first.
2. How long does it take to refinance a personal loan?
   The process can take anywhere from a few days to a couple of weeks, depending on the lender and your personal circumstances.
3. Can I refinance my loan with the same bank?
   Yes, some banks allow refinancing within their own services, which might come with special offers or rates.
4. Is refinancing always a good idea?
   Not necessarily. Consider all costs and potential savings to determine if it's beneficial for your situation.
5. What documents will I need to refinance my personal loan?
   Typically, you'll need proof of income, identification, and details of your existing loan.
6. Can I add more money to my loan when refinancing?
   Yes, this is known as a "top-up," but it will depend on your financial situation and the lender's policies.
7. What happens if I can't make my new loan repayments?
   Contact your lender immediately to discuss options. They may offer temporary relief or restructuring of the loan.