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Cheap personal loans

When cheap actually means better - 190+ rates checked and updated daily.

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years
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1 - 6 of 171
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
NAB Personal Loan Unsecured Fixed
NAB logo
Fixed1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
8.49%
to 20.49%
Comp. Rate (p.a.)
9.88%
to 21.78%
Application Fee
$250
Monthly Fee
$15
Monthly Repayment
$654.15
Go to siteMore Info
OurMoneyMarket Unsecured Low-Rate Personal Loan ($5,000-$75,000)
OurMoneyMarket logo
Finder award winner
Fixed1 - 7 Years $5,000 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
OurMoneyMarket Secured Personal Loan ($5,000-$75,000)
OurMoneyMarket logo
Fixed1 - 7 Years $5,000 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
OurMoneyMarket Home Improvement Loan
OurMoneyMarket logo
Fixed1 - 7 Years $5,000 - $100,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
NAB Personal Loan Unsecured Variable Rate
NAB logo
Variable1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
8.49%
to 20.49%
Comp. Rate (p.a.)
9.88%
to 21.78%
Application Fee
$250
Monthly Fee
$15
Monthly Repayment
$654.15
Go to siteMore Info
Jacaranda Finance Secured Personal Loan
Jacaranda Finance logo
Fixed25 Months - 3 Years $3,000 - $25,000
Interest Rate (p.a.)
16.95%
to 29.95%
Comp. Rate (p.a.)
32.99%
to 45.50%
Application Fee
$125 - $1,190
Monthly Fee
$26
Monthly Repayment
$780.95
Go to siteMore Info
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Showing 6 of 6 results

What to look for in cheap personal loans

For most borrowers, the interest rate is the most important part of a personal loan. A high interest rate makes the loan expensive. A lower rate makes it cheaper.

But if you just look at the rate you could end up getting ripped off. Some personal loans come with hefty fees that end up costing you more compared to a low-fee loan with a higher rate.

Other factors like the length of the loan, the loan type and the ability to make extra repayments also change how cheap or expensive your personal loan ends up being.

How to make sure you loan is cheap in 2 quick steps

  1. Compare a wide range of personal loans from different lenders first.
  2. Use a repayment calculator and add together the cost of fees.

Looking for a personal loan that combines a low rate with minimal fees? Check out Finder's top personal loan picks for December 2024.

How fees can make a cheap personal loan more expensive

Here are 2 personal loans with the same loan term and loan amount. Loan 1 has a lower rate but a $20 monthly fee. Loan 2 has a slightly higher rate but no monthly fee.

Which is cheaper?

Loan 1Loan 2
Loan amount$15,000$15,000
Loan term5 years5 years
Interest rate16.00%17.00%
Monthly fee$20$0
Monthly repayments$385$373
Total loan cost$23,087$22,368

The higher rate loan ends up being $719 cheaper over 5 years. All because of that little monthly fee.

    • Note: Comparison rates

Loans have a comparison rate listed alongside the interest rate. This figure is designed to show you the actual cost of a loan taking into account the interest rate and the loan fees.

How a lower interest rate makes a cheaper personal loan

Your personal loan's interest rate determines how much interest is charged on your repayments. Here are 3 otherwise identical loans with different interest rates.

Loan 1Loan 2Loan 3
Loan amount$10,000$10,000$10,000
Loan term3 years3 years3 years
Interest rate (p.a.)9.00%19.00%25.00%
Monthly repayments$318$342$367
Total loan cost$11,448$12,304$13,197

In these examples the lowest rate loan works out to be $1,607 cheaper than the highest rate one.

How do I get a lower interest rate?

The lowest personal loan rates go to borrowers who have excellent credit scores. You'll also need to have a steady income and meet all the borrowing requirements.

If you have an average credit score you won't be able to get a 9.00% rate no matter how hard you look.

But every borrower can still find a lower rate, whether their credit is excellent or not. The main thing is to compare rates from many lenders and make sure you're getting a good deal.

How fees can make your cheap personal loan expensive

Some lenders charge a monthly fee just for keeping the loan account open. And there's often an application or upfront fee that can cost hundreds of dollars.

Some lenders charge a percentage of your loan amount as a fee.

Here's an example:

  • Your lender charges an application fee that's 1.5% of your loan amount.
  • You borrow $10,000.
  • Your application fee is $150.

How the length of your loan affects the true cost

Most personal loans have terms between 1 and 7 years. And the length of the loan really affects how cheap the loan is in 2 ways:

  • A shorter loan term = less interest charged, but higher monthly repayments.
  • A longer loan term = more interest charged over time, but cheaper monthly repayments.

A shorter loan term is technically a cheaper loan overall because you pay much less interest. But for many borrowers the cheaper loan is the one where the monthly repayments aren't crushingly high.

Every borrower has to find the right balance between the monthly repayment size and the overall life of the loan.

Here are 3 examples, using identical rates and loan amounts but different terms:

Loan 1Loan 2Loan 3
Loan amount$8,000$8,000$8,000
Loan term3 years5 years7 years
Interest rate16.00%16.00%16.00%
Monthly repayments$282$195$159
Total loan cost$10,126$11,673$13,348

Loan 3 has by far the cheapest monthly repayments. But by taking 7 years to repay the loan you pay more than $5,000 in interest. Whereas loan 1's 3-year term means you pay just over $2,000 in interest.

4 tips to find the cheapest personal loan

  1. Improve your credit score. A better credit score means you can get a lower interest rate from many lenders who use risk-based pricing. Check out all the ways you can improve your credit score.
  2. Compare widely. Check out personal loans from big banks, small banks and online lenders to make sure you're getting a loan that's genuinely cheaper than the average.
  3. Use a guarantor. If you have bad credit or are struggling to get a loan approved, having someone support your application can help you get approved and get a cheaper loan. The catch? If you can't repay the loan your guarantor is on the hook for it.
  4. Find the right type of personal loan. There are different personal loan types that suit different borrowers, and some are cheaper than others. A secured loan will have a lower rate than an unsecured loan from the same lender, for example. A car loan with balloon payments might look very cheap at first but the final payment could make it very expensive.

Understanding different personal loan types

  • Secured car loans. Secured car loans are some of the cheapest personal loans but you'll need to be buying a new (or reasonably new) car and have good credit. Rates may go as low as 5% p.a. or as high as 29.99% p.a.
  • Secured personal loans. Rates for secured loans can range from 5% p.a. to 29.99% p.a. Like secured car loans, the rate may differ based on your risk profile.
  • Unsecured personal loans. Rates for unsecured personal loans can range from 8% p.a. to 29.99% p.a. depending on the lender.

How to make your repayments cheaper

Once you've found a suitable personal loan you do have a few ways to make the repayments cheaper regardless of how high or low the interest rate is.

Adjust the loan term

The length of the loan affects how cheap it is month-to-month and overall in terms of the interest costs. Play around with the loan term until you find the right balance.

Make extra repayments

Most personal loans let you make extra repayments. Putting aside even just a little extra each month to pay the loan down reduces the interest you get charged.

Just check that your lender doesn't charge a fee for making extra repayments.

Borrow less

It sounds obvious but a smaller loan size works out cheaper than a larger one. If you're able to reduce your borrowing amount you can end up saving yourself from money.

Why compare personal loans with Finder?

freeAddicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
expert adviceRates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.
independentCash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.

FAQs

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To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.
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Written by

Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

Rebecca's expertise
Rebecca has written 201 Finder guides across topics including:
  • Home loans
  • Cost of living
  • Budgeting

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2 Responses

    Default Gravatar
    MatthewJune 18, 2018

    Hey I have a existing personal loan with Commonwealth back was 4000 an I consolidated to 10000 can I consolidate it again and what would be best loan for me to do that with low interest rates fixed price unsecured?..

      AvatarFinder
      JoshuaJune 18, 2018Finder

      Hi Matthew,

      Thanks for getting in touch with Finder. I hope all is well with you. :)

      If you want to consolidate your personal loan, you may do so with other lenders. Here’s a list of debt consolidation loans in Australia.

      On that page, you will see a table that allows you to conveniently compare your options based on their interest rates. Once you find the right one for you, click on the “Go to site” green button to learn more or initiate your application.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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