Unsecured personal loans in Australia

Getting an unsecured personal loan is straight-forward. Apply online, receive your funds, and repay the loan without having to put up collateral.

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Name Finder Score Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
OurMoneyMarket Unsecured Low-Rate Personal Loan ($5,000-$75,000)
OurMoneyMarket logo
Finder award winner
Fixed1 - 7 Years $5,000 - $75,000
Finder score
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 Fixed
NAB logo
Fixed1 - 7 Years $5,000 - $55,000
Finder score
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 Home Improvement Loan
OurMoneyMarket logo
Fixed1 - 7 Years $5,000 - $100,000
Finder score
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
Finder score
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
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Key takeaways

  • Unsecured personal loans don't require collateral, but they often come with higher interest rates
  • Loan amounts and terms vary, so comparing different lenders can help you find the best option
  • Approval criteria may be stricter, but funds are typically available quickly once approved.

What is an unsecured personal loan?

With an unsecured personal loan you borrow money without putting up an asset (like a car or property) as security.

You'll get slightly higher interest rates compared to a secured personal loan (where you do offer asset as collateral). That's because if you can't repay the loan there's nothing your lender can repossess and sell to recover your debt - that makes you a higher risk to lend money to.

Unsecured loans can be easier to get though, because secured loans have certain criteria around what you can use as security. And rates can still be competitive.

With an unsecured loan you can borrow anywhere between $2,001 and $100,000 and terms range from 1 to 7 years.

How to compare unsecured personal loans

  • Look at the interest rate. A lower interest rate makes the loan cheaper. Rates are normally advertised as a range and the better your credit score, the better interest rate you'll get.
  • Factor in the cost of fees. Some lenders charge hefty fees and in some cases they could cause your loan to cost more than a higher interest rate with no fees.
  • Choose your loan term and loan amount carefully. The more you borrow the more expensive the loan is. Longer loan terms mean you end up paying more interest. But shorter loan terms make your monthly repayments higher.
  • Check if the loan allows extra repayments. Most loans let you make extra repayments or pay off the loan early without charging fees, but it's worth checking. 47% of Australians in Finder's Consumer Sentiment Tracker say it's the most important feature on a personal loan.
  • Make sure you're eligible for the loan. Check you meet all the eligibility criteria before submitting an application. You'll need to be over 18, have proof of your income and personal identification documents at a minimum.

The pros and cons of unsecured personal loans

Pros
  • Fast access to credit. Lenders don't have to assess an asset when you apply for an unsecured loan, so the approval process is faster.
  • Flexible loan options. These loans have flexible loan terms, loan amounts and often let you make extra repayments easily.
  • No assets at risk. You don't have to put a car or other asset up as collateral, so there's no risk of repossession, if you can't repay the loan.
Cons
  • Higher interest rates. While still competitive, the lowest personal loan rates in Australia are almost always going to be secured loans.
  • Risk of debt and credit score impact. Just because you haven't put up an asset doesn't mean failure to repay the loan won't hurt you. A default will harm your credit score and your lender can still pursue you for the debt in court.

What can I use an unsecured personal loan for?

Unsecured personal loans aren't tied to specific purposes in the way a home loan or a secured car loan is. They're quite flexible, and most lenders don't impose any restrictions on how you use the funds.

You can use an unsecured personal loan to:

Personal loan rate update: December 2024

  • Lowest unsecured personal loan rate: Harmoney Unsecured Personal Loan: 5.76% (comparison rate 6.55%).
  • Average unsecured personal loan rate in Finder's database: 10.94% p.a.
  • The average Australian with a personal loan borrows $7,727 with a 3 year term.
Richard Whitten
Market update by Richard Whitten – Finder money editor

Are there any risks with unsecured loans?

Any money you borrow comes with risk if you can't repay it. The best way to minimise those risks is to:

  1. Borrow only what you can afford to repay.
  2. Approaching a reputable, licensed lender (all lenders on Finder are licensed and reputable).
  3. Look at the comparison rate. It factors in the cost of all fees and the loan's interest rate.

The risks of taking out a large personal loan

Borrowing a lot of money is riskier than a small amount, generally speaking. A 5% interest on a small loan won't cost you as much in interest charges as the same rate on a much bigger loan.
Here's a simple example:

Loan ALoan B
Interest rate12%12%
Loan term3 years3 years
Loan amount$3,000$8,000
Total loan cost (loan plus interest)$3,588$9,566

These loans are otherwise identical, but the higher loan amount ends up costing the borrower more than $1,500 in interest. Whereas the smaller loan is just $588 of interest.

The risks of taking out a small personal loan

You might think that getting a very small unsecured personal loan is less risky. But if you want to borrow less than $2,000 you probably can't get a personal loan.

Borrowing under $2,000 means you're probably looking at a payday loan. These loans don't have standard interest charges, but come with hefty fees. The price of a small, fast unsecured loan can actually be much higher.

Do unsecured personal loans affect your credit score?

Applying for any loan impacts your credit score temporarily. That's why you should only apply for one product at a time and try to avoid getting your application rejected.

Aside from the initial impact of the application, taking out an unsecured personal loan won't necessarily hurt your credit score. If you make regular repayments and never miss one this will probably benefit your credit score.

Having multiple loans at the same time may hurt your credit score. And debts like credit cards or personal loans can have a bigger impact than something like a home loan.

See tips to improve your credit score here.

Rebecca Pike's headshot
Our expert says

"Like most personal loans, unsecured personal loans will use your credit score and financial situation to determine your credit rate. So when you're comparing interest rates don't forget that the lowest rate you're seeing might not be the rate you get.
You should check your credit score before you apply to understand where you might sit. If your credit score needs improving you can do that by closing or cutting down any existing debt you might have, making sure you pay bills on time and by checking your credit file for any black marks."

Senior writer

Frequently asked questions about unsecured personal loans

Finder Score for personal loans

To make comparing even easier we came up with the Finder Score. Interest rates, fees and features across 300+ personal loan products and 120+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the loan - simple.

For a fair comparison, unsecured loans and secured loans are scored separately. Assumptions are made on the interest rates charged for both excellent credit and average credit customers in each segment.

Read the full Finder Score methodology

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.
Richard Whitten's headshot
To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.
Rebecca Pike's headshot
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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44 Responses

    Default Gravatar
    JudyDecember 9, 2024

    I am on a 2-year student visa doing a HDR and have secured income through a scholarship. Can I get a loan of $3500 for my dependent’s education?

      AvatarFinder
      RebeccaDecember 10, 2024Finder

      Hi Judy,

      You may be eligible for a personal loan as a student, but it is best to check with individual lenders around their eligibility criteria. Eligibility may depend on things like your financial situation (including how much you’re earning through your scholarship) as well as the time left on your 2-year visa vs the loan term you would apply for.

      We have a guide here on personal loans for students, which I hope you find helpful.

      Thanks,

      Rebecca

    Default Gravatar
    LynneApril 10, 2023

    I have ad many loans. I have a great credit rating. Buf I have rstired and am on the pension
    Am I still eligible for a loan
    Thank you
    Lynne Davis

      AvatarFinder
      SarahApril 25, 2023Finder

      Hi Lynne,

      Your eligibility for a loan depends on a number of things, including your income. If you have enough income to support debt repayments, you may be approved.

      Also, it could be worth contacting the National Debt Helpline for some guidance. They offer free debt support and debt restructuring and could help look into your situation and options moving forward. They are open 5 days a week – contact them on 1800 007 007 or visit https://ndh.org.au/

      Hope this helps!

    Default Gravatar
    DennisMarch 15, 2023

    I require a personal loan to pay out trustee for Vesting interest in my property or they will sell leaving me homeless
    The amount required is $13,000
    I was discharged from bankruptcy 15th august last year

      AvatarFinder
      SarahApril 6, 2023Finder

      Hi Dennis,

      You can apply for any of the unsecured loans on this page by selecting the green “go to site” button.

      You may also want to look at some options for borrowers who have experienced bad credit in the past, here are some options:
      https://www.finder.com.au/payday-loans

      Best of luck!

    Default Gravatar
    KarenNovember 13, 2018

    I am on a disability pension and want to pay off my credit card and Centrelink loans. Can you advise me of the best way to get a loan for $1000 please

      AvatarFinder
      JohnNovember 13, 2018Finder

      Hi Karen,

      Thank you for leaving a comment.

      If you are looking to pay off your credit card balance and Centrelink loan, you may consider applying for a personal loan for debt consolidation. According to our review, Centrelink can be classed as genuine income by some lenders and can be used as income to assess your serviceability for a debt consolidation loan. It’s important to calculate your repayments and find out if your lender accepts your types of income. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions. Hope this helps!

      Cheers,
      Reggie

    Default Gravatar
    colleenSeptember 10, 2018

    Hi. I need a personal loan of 40k to pay off an existing loan and leave some to purchase a motorcycle. These sites are all just taking into consideration MY circumstances instead of the household income. My husband pays most things and I pay the existing loan and other insurance expenses etc. Who can I contact to get a loan which includes my household combined income?

      AvatarFinder
      JoshuaSeptember 12, 2018Finder

      Hi Colleen,

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

      I understand you’re looking for a lender that would consider your household income. Indeed, the majority of lenders would only assess your individual income primarily. However, we do have a page that lists lenders who provide personal loans on joint applications.

      On that page, you will see a table that allows you to conveniently compare your options. You can compare according to the loan amount, fees, term payment, and so on. Once you have found 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 out again.

      Have a wonderful day!

      Cheers,
      Joshua

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