The personal loan products that received 5-Stars are generally competitively priced and feature rich.
Interest rates
The interest rate represents the largest component of the total cost of the personal loan. Canstar Research found a significant difference between 5-Star rated products and the market average:
| Personal Loan Interest Rates | |||
|---|---|---|---|
| Car Loans | Unsecured Personal Loan | Secured Personal Loan | |
| Loans rated | 256 | 112 | 59 |
| Min | 5.12% | 7.22% | 4.24% |
| Max | 21.99% | 22.99% | 20.87% |
| Average | 10.31% | 12.34% | 9.39% |
| 5-Star Average | 6.16% | 9.23% | 5.00% |
| Difference | 4.15% | 3.11% | 4.39% |
| Rates as per conditions outlined in Personal Loans Star Rating Methodology for relevant profile and are correct as at 3/11/2017 Source: www.canstar.com.au |
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Fees
Upfront and ongoing fees are also an important factor when comparing personal loans, with some having a low interest rate and a relatively high upfront fee. The Star Rating examines both the interest and fee component when judging the individual product.
| Car Loan | Unsecured Personal Loan | Secured Personal Loan | ||||
|---|---|---|---|---|---|---|
| Upfront Fees | Ongoing Fees* | Upfront Fees | Ongoing Fees* | Upfront Fees | Ongoing Fees* | |
| Min | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Max | $1,250.00 | $156.00 | $750.00 | $156.00 | $380.00 | $156.00 |
| Market Average | $199.21 | $38.39 | $194.57 | $43.39 | $183.25 | $58.98 |
| 5-Star Average | $154.04 | $6.92 | $158.09 | $5.45 | $135.00 | $24.00 |
| *Fees are the ongoing fees that would be incurred on an annual basis and are correct as at 3/11/2017. Source: www.canstar.com.au | ||||||
Features
Personal loan products that performed well in features would often offer some or all of the following:
- Redraw and top up facilities
- Ability to make extra payments
- Ability to defer payments
- Ability to make repayments via a variety of channels (e.g. branch, atm, telephone)
- Availability of Loan Insurance
- Security swaps allowed
- Easy application (e.g. online or via mobile app)
- Fast approval turnaround times
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