Compare personal loans

Why compare personal loans?

You wouldn’t buy the first car you see on the lot without checking a few price tags, and a personal loan is no different. Comparing your options before applying can help you find one that’s right for your needs and budget.

If you're on the fence, it's worth comparing for several reasons:

• Rates and fees vary widely: The interest rate you’re offered is often tied to your credit score, and comparing may stop you from paying an unnecessary premium.
• Protect your credit score: Reduce your chance of being rejected for a personal loan (and hurting your credit score) by comparing loans you’re more likely to be eligible for before applying.
• The ‘cheapest’ rate may not be the most cost-effective: The right combination of features, like redraw facilities or the ability to make extra repayments, could help you save money over time.

Choosing a loan without properly comparing your options could leave you with repayments that are difficult to manage or cost you more than necessary over time. You could even end up defaulting on your loan, which could majorly damage your credit score.

How to choose a personal loan

The secret to selecting a 'good' loan isn't just chasing the lowest interest rate; it should also suit your budget, repayment goals and financial habits. 

Here is how to vet your options with confidence:

Get clear on what you need

Before comparing loans:

• Think about how much you need to borrow and whether you could cover the costs in other ways (like using your savings).
• Consider your needs, whether you’d like a fixed or variable rate, or need a loan for a specific purpose, like debt consolidation.
• Use an online calculator to work out how much your repayments might be and whether you can afford them.

Borrowing more than you need or stretching out your loan term could mean paying significantly more in interest over time.

Compare more than just the advertised rate

When weighing up personal loans, it’s important to look beyond the headline interest rate. The comparison rate factors in the interest rate plus most upfront and ongoing fees, giving you a clearer indication of the loan’s overall cost.

You’ll want to compare:

• Application and ongoing fees
• Repayment flexibility
• Redraw facilities
• Extra repayment options
• Whether early repayment fees apply

Broaden your horizons

Just because you do your everyday banking with one lender doesn’t mean it has the most competitive personal loan rate to offer you. Look beyond your current bank to see who can offer you a deal that’s right for you.

Check your eligibility before applying

Every lender has different eligibility criteria. Applying for loans you’re unlikely to qualify for could impact your credit score. The comparison tool above can help you see which unsecured personal loans you might be eligible for. 

Compare personal loans with Canstar

Comparing personal loans with Canstar is easy, simply provide some basic information about your ideal loan and your credit score to narrow down products or browse our database for unsecured personal loans.

1. Tell us a little bit about the loan you're after: Click the 'GET RATE ESTIMATE' button at the top of the page and enter how much you'd like to borrow, how long you'd like to spend repaying it, and what you’ll be using the funds for, as well as some basic information about your financial situation.
2. Link your credit score: By securely linking your credit score for a soft credit check (one that has no impact on your credit score), we can provide you with a selection of personal loans and interest rates you're more likely to be eligible for.
3. Use your personalised comparison table: Quickly compare a wide range of loans and interest rates displayed on your personalised comparison table and narrow down your options using the filters.

Or, you can simply browse the comparison table above, showing a broad selection of personal loan products on our database.

Once you've found your ideal loan or lender, you can start the application process:

• Gather your information: Before applying, you’ll need to have your personal information on hand. This includes identifying documents (like your driver’s licence or passport), proof of your income, and details of your living expenses as well as any other debts (like credit cards, home loans, or other personal loans).
• Apply for the loan: You can apply with your chosen provider online by clicking the 'Go to site' button (Canstar may earn a referral fee in this instance).

What is a personal loan?

A personal loan lets you borrow a lump sum that goes towards a specific purpose (like a holiday, car purchase, or debt consolidation). You then need to repay this borrowed money with associated interest and fees over a particular length of time (known as a loan term).

What is an unsecured personal loan?

An unsecured personal loan allows you to borrow money from a lender without having to put up an asset, like a car or home, as security (also called collateral). Because you don't have to tie an asset to the loan, unsecured personal loans can be taken out for an array of purposes. However, since the lender takes on more risk, unsecured personal loans can come with higher interest rates than secured loans.

The table above shows a selection of unsecured personal loans available on Canstar’s database.

In comparison, a secured personal loan (like a new car loan), requires an asset to be put forward as security. 

How to compare personal loans

When comparing personal loans, check the loan product’s Key Facts Sheet and Product Disclosure Statement (PDS). Here are some important features to consider:

• Interest rate: This can vary depending on the provider and your personal circumstances (such as your credit score and whether you have a loan guarantor).
• Comparison rate: Included alongside a provider’s advertised rate, this takes into account both the interest rate and most upfront and ongoing fees. It’s designed to give you a better idea of the total cost of the loan.
• Fees and charges: Such as application or establishment, monthly, missed payment, and early payment fees.
• Loan term: The length of time you have to pay back the loaned amount. A longer term may see you have lower repayments, but it also means you’ll likely pay more interest over the life of the loan.
• Flexibility around additional repayments: All providers on Canstar’s database allow you to make extra and lump sum repayments, but it’s important to check whether additional fees apply.
• Features: Some loans also come with helpful features, such as a redraw facility, enabling you to withdraw additional repayments previously made.
• Eligibility criteria: Check the eligibility criteria of any loan product to get an idea of how likely you are to be approved. You can view personal loans you're more likely to be eligable for on Canstar’s database by clicking the ‘GET RATE ESTIMATE’ button.

Insider tip: Tiered pricing

Some lenders offer different interest rates depending on the loan term. For example, a lender may reserve its sharpest rates for loans with terms of three or five years, while shorter-term loans could attract slightly higher rates.

This may be because, for the lender, the administrative costs of setting up the loan are high, relative to the interest it’ll earn.

Who has the best personal loans in Australia?

There’s no one ‘best’ personal loan or provider—the best one for you will depend on your needs and budget. That said, Canstar’s Personal and Car Loans Awards recognise providers offering outstanding value to customers around Australia. Our most recent award winners were:

• 2025 Personal Loans Award: Australian Mutual Bank, Liberty, OurMoneyMarket, People’s Choice, Revolut, Teachers Mutual Bank, and Uni Bank
• 2025 Excellent Credit Personal Loans Award: Great Southern Bank, Liberty, MoneyPlace, OurMoneyMarket, Plenti, and Revolut
• 2025 Green Personal Loans Award: Northern Inland CU, Police Credit Union, and Queensland Country Bank

How do personal loans work?

Personal loans work in a fairly straightforward way:

• You apply for your loan of choice, supplying the lender with details on your financial situation.
• If you’re approved, the lender will then supply you with your chosen loan amount.
• You’ll then make regular repayments either weekly, fortnightly, or monthly. These repayments go towards both the principal (the original amount borrowed) and interest charged by the lender.
• You may also be charged certain fees, depending on the loan.
• You’ll continue making repayments until you completely repay the amount you initially borrowed, plus interest.

Different types of personal loans

When it comes to the types of personal loans available, there are two distinct avenues: differences that can impact how a loan functions, and variants that affect what the funds can be used for

Some structural personal loan features can change how one might function once you've secured it, like if your interest rate is subject to change or whether you need to put forward collateral.

Meanwhile, many lenders offer niche loan products for tailored use cases, like offering different rates on loans taken out for targeted purposes, such as green home upgrades.

Here is a breakdown of the core personal loan functions you need to understand when selecting the right product for your needs, followed by the most common use cases you will encounter in the market.

Fixed or variable-rate personal loans

Secured or unsecured personal loans

Green personal loans

These are special personal loans that can be used to finance environmentally friendly products and purchases–like solar panels, home batteries, or electric vehicle charging stations. If you’re looking to buy an electric vehicle, you can compare green car loans with Canstar.

Debt consolidation loans

A debt consolidation loan can roll multiple debts (like credit card balances, buy now, pay later debt, or short-term loans) into one personal loan. This can help secure a lower overall interest rate and the convenience of a single monthly repayment.

Insider tip: Consolidating debt into a personal loan may be cheaper than into a mortgage

Your home loan may have a lower interest rate than a personal loan, but it probably has a much longer life span. Consolidating smaller debts into your mortgage may see you paying more in interest over years or decades, despite the lower rate.

Short-term and payday loans

Short-term and payday loans are smaller loans (usually up to $2,000) with shorter repayment terms (16 days to one year). While they may promise fast access to money, they can charge very high establishment fees (up to 20% of the loan balance) and ongoing monthly fees (up to 4% of the loan balance). Payday loans can be risky and have the potentially to lead to a spiral of debt.

Rental bond loans

A rental bond loan is a type of personal loan that can be taken out to pay for the bond on a new rental property. Depending on where you live and your personal circumstances, you may be able to access interest-free rental bond loans from your state government or through a NILS provider.

Medical loans

A medical loan may be a personal loan that can help you cover the costs of surgery or medical treatment, as certain medical costs aren’t always covered by Medicare or your private health insurance. While many lenders won't offer specific 'medical loans', unsecured personal loans can generally be used to pay for medical treatments or prescriptions.

Personal loans for renovations

Personal loans can also be taken out to fund home renovations. You might even choose to secure these personal loans against your home equity. You may also be able to finance renovations using the equity you have built up in your home, either through a home loan 'top up', a line of credit attached to your mortgage, or by refinancing.

Personal loan interest rates in 2026

Personal loan interest rates can change regularly and often vary depending on the lender, loan type and borrower profile. If you’re looking for a personal loan, you want to find one that’s competitive relative to others in the market. You can use the comparison table at the top of this page to sort by comparison rate, interest rate, or estimated monthly repayments—all of which can help you weigh up your options.

How to find the cheapest personal loan rates

You can change the filters on the comparison table above to find the cheapest rates in our database. But that’s not all a prospective borrower should look for.

It’s also important to consider a loan’s comparison rate–as that can give you a clearer picture of the total cost of the loan each year–and any features on offer, like redraw facilities or the ability to make extra payments–which could help you repay the loan earlier without incurring fees.

Lowest personal loan rates in June 2026

Here are some of the lowest personal loan rates per annum (per year) on Canstar’s database at the time of writing in various categories:

Source: www.canstar.com.au – 16/06/2026. Based on personal loans available on Canstar’s database, available for any term and any loan amount. Comparison rate calculated based on a $10,000 loan over 3 years.

What is a good personal loan interest rate in Australia?

Interest rates for unsecured personal loans can range from as low as 5.76% p.a. to more than 29% p.a., based on loans from Canstar’s database at the time of writing. 

A good personal loan rate may sit below the market average of 12.11% p.a., but it will ultimately depend on your needs and financial situation. 

What impacts your personal loan interest rate? 

Personal loan lenders often use risk-based pricing, meaning your interest rate reflects the risk you represent as a borrower. Lenders typically assess this by looking at:

• Your credit score: Based on your credit history (made up of your past loan applications, current credit limits, and repayment history), your credit score is often used to determine how trustworthy you are as a borrower. You can check your credit score for free with Canstar before applying.
• How much you’re borrowing and for how long: Larger loans or longer repayment periods increase the perceived risk of default. Lenders often hike rates to offset this risk.
• Your existing debts: Holding lots of existing debt may suggest your risk of default is high.
• The loan purpose: What you plan to use the money for matters. For example, lenders typically offer lower rates on loans used for home improvements that add to the value of your property.

Insider tip: Risk-Based Pricing

Personal loan lenders commonly use risk-based pricing, meaning you may be offered a personalised rate based on your ‘risk profile’ or credit score. If you have an excellent credit score, you may get a lower rate. Alternatively, if you have an average credit score, you might want to look for lenders that use a ‘one-rate-for-all’ model.

What are credit score bands?

The credit scores provided by Canstar are powered by credit reporting bureau Equifax. It splits credit scores into five different bands:

How can I get a better interest rate on my personal loan?

• Improve your credit score by making repayments on existing debts on time, checking your credit report for inaccuracies and working to correct any you find, and thinking carefully before applying for new credit products.
• Consider a secured personal loan – these often come with lower rates than unsecured ones.
• Compare personal loans from a variety of different loan providers.
• If you’re an existing customer of a bank or lender, you may be able to negotiate the rate you're charged.

Can I get a lower rate on my current personal loan?

Already have a personal loan? That doesn’t necessarily mean you’re stuck with your current interest rate.

If you spot another personal loan with a more competitive interest rate or better features, you may be able to refinance your personal loan to a different product or provider. Be aware that your current loan may come with break, early payment, or exit fees, so it’s important to calculate whether the savings made by switching to a new loan would offset these fees.

You can also simply ask your lender if it will lower your rate. You might be surprised by its answer.

Insider tip: If you’ve increased your credit score since having your loan, consider refinancing

The best personal loan interest rates are often reserved for borrowers with higher credit scores. If your score has improved since you first took out your loan, you may be able to refinance to a more competitive rate.

What are personal loan fees?

Like most credit products, personal loans can come with a range of fees:

• Application fees: Charged to cover the admin costs of setting up your loan.
• Ongoing fees: Also called account-keeping, monthly, or annual fees, these cover the admin costs of maintaining your loan.
• Missed or late payment fees: Often charged if you miss or are late making a repayment.
• Early payment fees: Some providers may charge a fee if you pay off your loan early. These are also called exit or break fees.

Insider tip: Early Exit Strategy

If you plan on paying your personal loan off before its term is out, look for those offering unlimited extra repayments without early repayment or termination fees.

How much can I borrow with a personal loan?

Providers typically specify minimum and maximum loan amounts, but the amount you’re actually offered will depend on how much you can afford to pay back. 

Your provider will consider your personal situation (like whether you have dependents and if you’re making a single or joint application), income, living expenses, and any other financial commitments you have (like credit cards, other personal loans, or a home loan) when determining how much you can borrow.

How long can a personal loan term be?

Personal loan terms generally range from one to seven years. You may be able to find longer terms (up to 10 years) when borrowing to buy certain products or to make home improvements. Generally speaking, the longer your loan term, the more you’ll pay in interest over its life. Short-term or payday loans may have terms under one year, but often charge high fees.

Insider tip: Time is money

The shorter the loan term, the higher your monthly repayments will be, but you’ll save on interest charges over the long run.

How much will your personal loan repayments be?

The size of your repayments will depend on many factors: 

• How much you borrow
• The loan’s term
• The frequency of your repayments
• Your interest rate and any fees

You can use Canstar’s personal loan repayment calculator to estimate the size of your repayments and how much interest you’ll pay. Simply enter the amount you want to borrow, the interest rate on offer, your loan term, and how regular you want your repayments to be.

Personal loan features 

What is a personal loan redraw facility?

A redraw facility allows you to ‘redraw’ additional repayments you’ve made towards your personal loan. For example, if you’ve been paying extra off your loan each month, but then you receive a large power bill, you might be able to redraw some of your extra repayments to pay the bill. 

Insider tip: Check your lender’s terms on your redraw facility

Some lenders impose restrictions on how you can use your redraw facility, like barring you from redrawing until you’ve made a certain number of extra repayments or held the loan for a certain amount of time. Just because a provider offers a redraw facility doesn’t mean it’ll be easy to access or beneficial for you.

What is a personal loan guarantor?

A guarantor agrees to pay off your loan if you’re unable to. This lowers the risk of default for lenders and may get you a lower rate. A guarantor is usually a family member or partner, and they would need to meet the lender’s eligibility criteria too. Asking someone to be your guarantor shouldn’t be taken lightly, as if worst comes to worst and you’re unable to repay the loan, the financial burden would fall to them.

Car loan vs personal loan: what’s the difference?

Am I eligible for a personal loan?

You’re generally eligible to apply for a personal loan in Australia if you are: 

• 18 years or older
• An Australian citizen or permanent resident
• Employed or have a steady source of income to repay the loan
• In possession of a good credit history.

Some providers may have additional eligibility requirements, like a minimum income or credit score.

How to apply for a personal loan 

Many personal loan lenders allow you to apply online or over the phone. If you find a suitable loan product on Canstar’s comparison table, you can begin the application process online with your chosen provider by pressing the ‘Go to site’ button (if it’s provided).

You’ll probably be required to complete a form, supply your personal information, and upload supporting documents.

Once submitted, the lender will assess your application and decide whether or not to approve the loan.

What documents will you need for your personal loan application?

• Proof of identity: Can include your driver’s licence, passport, or birth certificate, and supporting documents like your Medicare or bank card.
• Proof of employment and income: You’ll generally need to provide payslips or tax returns to verify your income. You may also have to provide details of your employment over the last three years.
• Living expenses and other debts: The lender will ask for information on your living expenses, like groceries, utilities, streaming services, and rent, as well as any existing debts.
• Your assets: Some providers may require you to provide information on any assets you own, including vehicles and property. 

How long does a personal loan take to get approved?

It may take a few hours or a few business days for an application to be processed. Some providers offer same-day approvals for eligible customers. You may come across short-term or payday loans advertising fast approvals, but these often charge much higher fees.

Tips for getting your personal loan approved

• Check the lender’s eligibility criteria before applying: Criteria typically include Australian citizenship or residency, a regular income, and a particular credit score. You can improve your chances of approval and avoid unnecessary credit inquiries by ensuring you’re eligible for the loan you’re applying for. You can view personal loans you're more likely to be eligible for with Canstar at the top of this page.
• Calculate how much you can afford to borrow: Lenders will assess if you can comfortably repay the loan based on your income, expenses, and existing debts. If the amount you want to borrow is more than you can afford to repay with your income and expenses, a lender may decline your application, which could hurt your credit score.
• Keep documents ready: Most lenders will ask for proof of identity, recent payslips, bank statements, and employment details. Getting these ready in advance can help speed up the application process.
• Fill in your application correctly: Make sure all information in your application is accurate and up to date. Errors or missing details can slow down the assessment process and raise questions.
• Avoid submitting multiple credit applications: Making several loan applications within a short period of time can lower your credit score and signal financial stress to potential lenders.
• Maintain a good credit rating: Your credit history shows lenders how reliable you might be as a borrower. Paying bills and making repayments on time, keeping credit card balances manageable, and avoiding defaults can help you maintain a good credit profile.
• Consider a guarantor: Having a guarantor on your personal loan may reduce how much risk you represent as a borrower and could even see you rewarded with a lower rate. That said, if you’re unable to repay the loan, the financial responsibility would fall to your guarantor.
• Build regular savings habits: A consistent savings history can show lenders that you manage your money responsibly.
• Reduce existing debt where possible: Holding existing debt can affect your borrowing capacity. Paying down credit card debt or other loans before applying may improve your chances of approval.

Insider tip: Check for ghost debts or errors on your credit report

Simple admin errors, old direct debits you thought were cancelled, or even fraudulent activities can sit on your credit report without your knowledge and drag down your credit score. It could be worth checking your report and addressing any errors before applying for a loan.

What happens if you’re rejected for a personal loan?

If your application is rejected, it’s important to ensure you understand why before you apply for another loan. A lender may deny your application if there are defaults on your credit report, if you’re more than 14 days overdue on other repayments, or if your income or savings history indicates you might struggle to pay back the loan.

The rejected application will show up on your credit history and likely lower your credit score. Taking the time to confirm your eligibility before applying can help improve your chances of approval. 

Insider tip: Soft Credit Checks

Formal credit applications for credit trigger a ‘hard’ credit check, which gets recorded on your credit file and can damage your credit score. Making multiple unsuccessful loan or credit applications can materially damage your score, which can make it harder to borrow in the future. On the other hand, 'soft' credit checks allow you to check your score without harming it.

Can you apply for a personal loan with bad credit?

Some providers offer specific loans for people with low credit scores. They’re typically offered by non-bank lenders, and the application process may be stricter. A lender may inquire about your personal circumstances and the reason behind any black marks on your credit score, such as bankruptcies or defaults.

If you plan to apply for a personal loan and have a lower credit score, keep in mind that the interest rate you’re charged may be higher than that offered to a borrower with a better score. It may be worth working to improve your credit score before applying.

Depending on your situation and what you plan to use the loan for, you may be eligible for a No Interest Loan Scheme (NILS) loan. 

Is a personal loan right for me?

Whether a personal loan is the right solution for you depends on your needs and circumstances. A personal loan can help you cover an emergency expense or spread the cost of a large purchase over time, which may be preferable to loading it up on a credit card (which usually comes with higher interest rates) or redrawing on your mortgage. However, it’s still a form of debt that must be repaid with interest over a fixed period.

Before taking out a personal loan, consider:

• Whether you can comfortably afford the repayments
• How much interest and fees you’ll pay overall
• Whether there are alternative ways to fund the expense.

If you’re struggling with ongoing financial pressure or relying on loans to cover day-to-day living costs, speaking with a financial counsellor may be a better option.

The National Debt Helpline offers free and confidential financial counselling services.