Personal loans are the second most common loan type Australians search for after home loans. Whether you need to consolidate debt, cover an unexpected expense, or fund a renovation, a personal loan gives you a lump sum you repay over a fixed term with regular payments.
The challenge is finding the right one. Rates vary massively — from 5.76% to over 20% depending on the lender, your credit score, and whether the loan is secured. Most people go straight to their bank and accept whatever rate is offered. That is almost always a mistake.
We compare personal loan options from over 50 lenders. Here is what you need to know to get the best deal in 2026.
How Personal Loans Work
A personal loan is a fixed amount borrowed from a lender, repaid in regular instalments (usually monthly) over a set term, typically 2 to 7 years. Unlike a credit card, you receive the full amount upfront and repay it on a fixed schedule.
Key features:
- Fixed repayments — you know exactly what you pay each month
- Set term — usually 2 to 7 years
- Interest rate — fixed or variable, applied to the outstanding balance
- Fees — may include establishment fees ($0–$400), monthly fees ($0–$15), and early repayment fees
Secured vs Unsecured Personal Loans
Secured personal loans
Backed by an asset (car, savings, or other property). Because the lender has security, rates are typically 1–3% lower than unsecured. If you default, the lender can repossess the asset.
Unsecured personal loans
No asset required. Higher rates because the lender takes more risk. Faster approval, less paperwork. Ideal for smaller amounts or when you do not have an asset to offer.
Our recommendation: If you are borrowing over $10,000 and have an asset to secure against, a secured loan will almost always save you money. For smaller amounts under $5,000, unsecured is simpler and the rate difference is less material.
Personal Loan Rates: March 2026
These are the lowest advertised rates from lenders on our panel, updated after the RBA’s March rate decision:
| Lender | Min Rate | Max Rate | Type | Best For |
|---|---|---|---|---|
| Harmoney | 5.76% | 24.99% | Unsecured | Good credit, fast approval |
| MoneyMe | 5.99% | 19.99% | Unsecured | Quick online application |
| Wisr | 6.94% | 24.74% | Unsecured | Fair credit, flexible terms |
| Westpac | 9.24% | 21.99% | Both | Existing Westpac customers |
| ANZ | 9.74% | 19.99% | Both | Existing ANZ customers |
| SocietyOne | 9.20% | 21.49% | Unsecured | Debt consolidation |
| Liberty | 13.24% | 24.99% | Both | Poor credit, flexible criteria |
| La Trobe | 13.74% | 24.99% | Both | Self-employed, non-standard income |
| Pepper Money | 14.24% | 24.99% | Both | Bad credit, prior defaults |
| Latitude | 16.25% | 24.99% | Unsecured | Existing Latitude customers |
Rates as of March 27, 2026. Your actual rate depends on credit score, loan amount, and term. Compare your personalised rate here.
How Your Credit Score Affects Your Rate
Unlike home loans where most borrowers get a similar rate, personal loan rates are heavily credit-score dependent. The difference between excellent and poor credit can be 10%+ in interest.
| Credit Score | Typical Rate Range | Monthly on $10,000 (3yr) |
|---|---|---|
| Excellent (800+) | 5.76% – 8.99% | $299 – $314 |
| Good (700–799) | 8.99% – 12.99% | $314 – $332 |
| Fair (500–699) | 12.99% – 18.99% | $332 – $361 |
| Poor (below 500) | 18.99% – 24.99% | $361 – $393 |
If your credit is fair or poor, do not assume you cannot get approved. Lenders like Wisr, Liberty, and Pepper Money specialise in non-standard credit profiles. A broker can match you with lenders who assess your application based on your current situation, not just your credit file.
Common Uses for Personal Loans
- Debt consolidation — combine multiple credit cards or loans into one fixed payment at a lower rate
- Car purchase — a secured personal loan can be cheaper than dealer finance
- Home renovations — fund improvements without touching your mortgage
- Medical expenses — surgery, dental, or specialist treatments
- Travel — a fixed loan beats putting a holiday on a credit card at 20%+
- Education — courses or training not covered by HECS
How to Apply: What You Need
Most lenders require:
- Photo ID — driver licence or passport
- Proof of income — 2 recent payslips or tax returns if self-employed
- Bank statements — last 90 days (many lenders accept digital bank feeds)
- Loan purpose — what the money is for
Most online lenders can give you a conditional approval in minutes and fund within 24–48 hours. Through our platform, you can compare options from 50+ lenders in about 60 seconds without affecting your credit score.
Compare personal loan rates from 50+ lenders
60 seconds. Free. No credit check at initial stage.
Compare My Personal Loan OptionsWhy Use a Broker for Personal Loans?
Most people think brokers are only for home loans. They are not. A broker can:
- Compare rates across 50+ lenders in minutes — not just the 2-3 you would check yourself
- Match your credit profile to lenders most likely to approve you
- Negotiate on your behalf — lenders offer brokers rates they do not advertise publicly
- Save you from credit score damage — multiple applications hurt your score, a broker submits to the right lender first time
Our service is free. Lenders pay us a commission when your loan settles. You pay nothing extra — in fact, you usually pay less because we find a more competitive rate than you would on your own.
Frequently Asked Questions
How much can I borrow with a personal loan?
Most lenders offer $2,000 to $75,000, with some going up to $100,000 for secured loans. The amount you qualify for depends on your income, expenses, and credit score.
Will applying for a personal loan affect my credit score?
A formal application creates a hard enquiry on your credit file. However, using our comparison tool does not affect your credit score — we do a soft check only at the initial stage.
Can I get a personal loan with bad credit?
Yes. Lenders like Liberty, Pepper Money, and La Trobe specialise in non-standard credit. Rates will be higher (typically 14–25%) but approval is possible, especially if you have stable income and can demonstrate your current financial position has improved.
How fast can I get the money?
Online lenders like Wisr, MoneyMe, and Harmoney can approve and fund within 24 hours. Traditional banks typically take 3–5 business days. Through our platform, we match you with the fastest option for your profile.
Should I get a secured or unsecured loan?
If you are borrowing over $10,000 and have an asset (car, term deposit, etc.), secured will almost always be cheaper. For smaller amounts or if you want simplicity, unsecured works fine. The rate difference is typically 1–3%.