What is the average interest rate on a personal loan in Australia?

The average interest rate for unsecured personal loans in Australia is 10.6% p.a (as of October 2025). This is the average rate taken from Finder's database, based on an individual with Excellent credit. Your own credit score, and therefore the rates you are offered, may differ.

Which bank is best for a personal loan?

There's no simple answer for which bank is best for your personal loan. Your credit score and relationship with the bank will impact the rate you are offered. Comparison tables can help you understand the full interest rate ranges banks offer. It's best to see which is offering the lowest rates, check to see if you match its eligibility criteria and then get a quote. It may also be worth looking at non-bank lenders, as they operate under the same regulation as banks and can have more competitive rates. For a quicker answer, Finder has done its own research into our top picks for the best personal loans .

Should I get a personal loan from a bank or online?

Whether you get a personal loan from a Big Four bank, a smaller lender or an online lender, you'll most likely be applying online anyway. Here are your main lender options: Big Four banks. If you already bank with CommBank, Westpac, NAB or ANZ then it can be easier to get a personal loan approved. And you'll have all your accounts in one place. Keep in mind that the Big Four may have less competitive rates than online lenders. Other banks and institutions. Smaller than the Big Four, banks like ING, Bendigo Bank, Bank of Queensland and many others offer personal loans. Then there are financial service companies like Latitude that specialise in personal lending. Online lenders. There are many online lenders that offer personal loans with fast approval times and competitive interest rates. Examples include Humm, Harmoney, Now Finance and Wisr. Credit unions. These member-owned organisations are similar to banks but are often more local and smaller. Credit unions offer personal loans that sometimes have quite competitive rates. Some offer online service while many have physical branches in certain towns and cities.

How much can I borrow with a personal loan?

Most unsecured loans offer amounts between $2,000 and $50,000, while secured loans offer up to $100,000. But the actual amount you can borrow depends on factors including your credit score and ability to make repayments.

What is a good rate on a personal loan?

A good unsecured personal loan interest rate is around 6–15% for people with an Excellent credit score. Personal loans use your credit score to determine the rate, with higher scores leading to lower rates. As a guide, Finder analysis shows most Australians have a Good or Very Good credit score.

What credit score do I need for an Australian personal loan?

An Australian credit score of 550 is generally the minimum you need to qualify for a personal loan. This will likely be an expensive loan, as most Australian lenders use risk-based pricing. Lower credit scores could qualify for payday or short term loans, though these will be more expensive than even a bad credit personal loan.

How quickly can I get the money from my personal loan?

It usually takes a few business days to get the money from a personal loan once your application is approved, but it does vary. Some banks are able to offer existing customers same-day personal loans. Some payday lenders also offer 1-hour turnarounds but these loans come with risks including higher interest rates and fees.

How can I improve the chances of my loan being approved?

There is no way to guarantee you're approved for a loan, but there are some key steps you can take before you apply: Work out how much you can borrow. Lenders have criteria to decide how much you're eligible to borrow, but you also need to understand what is realistically affordable for you. Maintain a good credit score or improve it. A lower credit score can reduce your chances of getting approved or mean you are offered a higher interest rate. If you already have a poor credit score, you can start improving it by limiting credit applications, paying bills on time and bringing down any limits on your credit card. It can take a while, but these are all good tactics to improve that credit score. Keep track of your saving goals. If you manage to contribute to your savings regularly, it shows lenders that you are likely to manage ongoing loan repayments.

Karen Eley

Editorial Review Board

Karen Eley is the founder of Women Talking Finance, which provides money coaching and financial literacy and education services. An experienced and former financial adviser who has worked in financial services industry for 22 years, Karen now helps women and couples who feel confused or overwhelmed with money matters to build financial competence and confidence through money coaching and education. Karen is a Certified Money Coach (CMC), holds a Bachelor of Accounting and an Advanced Diploma in Financial Planning and CFP. She holds director positions on boards for two profit-for-purpose organisations.

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