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The maximum you will be charged is a 20% Establishment Fee and a 4% Monthly Fee. Under the current legislation lenders do not charge an annual monthly interest rate for our Small Amount Credit Contracts. You may know this as Annual Percentage Rate or APR(%). Click here to see a worked example.

The Annual Percentage Rate for Secured Medium Loans is 48%. Comparison Rate is 67.41% p.a. This comparison rate is based on a Medium Amount Credit Contract for an amount of $2,500 over 2 years and a $400 establishment fee. Fees and charges are payable. Click here to see a worked example.

The Interest Rate for Secured Large Amount Loans is 21.24%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Personal loan rates – find out the best rates for personal loans today!

personal loan rates

Confused by personal loan rates? Well, not to worry that’s where Personal Loan Pal can come in handy. Read on to find out everything you need to know about personal loan rates.

What is a personal loan?

A personal loan is money that is lent to you from a financial lender to cover unexpected expenses.

These could be anything from medical expenses, dental expenses, home renovations, car repairs, school fees or even travel expenses. The purpose of the loan is specific to the individual, and that is where it gets its name from. It is for personal purposes – get it?

What are personal Loan rates?

So, you know what defines a personal loan, but what does it cost to get one. That’s what personal loan rates are. They are the rates associated with borrowing a personal loan.

For instance, if you take out a loan to be repaid over 12 months, the rate is the amount you pay in addition to the repayment amount. For instance, with small short-term personal loans, monthly rates are usually about 4%. There are two types of rates – fixed personal loan rates and variable personal loan rates. We’ll unpack those in a second.

Remember, your personal loan may also have an establishment fee. This is an amount of 20% that is charged upfront.

What are fixed personal loan rates?

Personal loan interest rates can either be fixed or variable. Fixed loan rates are pre-determined rates that will stay the same for the duration of the repayment period. This protects you from any unexpected increases in interest rates.

What are variable personal loan rates?

Variable rates are when the interest rate is not fixed and varies depending on the market. The benefit of variable loan rates is that if it drops you could pay a lower rate than the fixed rate. Another advantage of a variable interest rate is that it gives you more flexibility to make extra payments, so you can pay off your loan faster. The downside is that you also risk paying more if the interest rate rises.

Sound a little like banker-talk? We know it can be hard to sift through the lingo to figure out which option is the best for you. Read on to find out more about comparing personal loan rates.

Comparing personal loan rates (compare personal loan rates)

When comparing personal loan rates, the important things to look at are the length of the loan term and the interest percentage. Sometimes, the interest rate is lower when the loan term is longer. However, the longer you are paying interest for the more you will end up paying in total.

You could multiply the interest rate by the length of the loan term – this will help you to calculate how much interest you will pay.

However, an easy way to find compare rates will be to use the calculator on our website. You’ll apply for a loan and we’ll do the comparison for you to help you find the best personal loan rates based on your personal financial circumstances.

What is a comparison loan rate?

A personal loan rate comparison is a way of comparing loan rates with the advertised rate along with the fees involved. It is a rate that all lenders must display by law, next to their advertised interest rate. They normally use an example to demonstrate the comparison loan rate so that it makes a bit more sense. A common example is a loan of $10,000 repaid over 3 years – the rounded off numbers make it easier to illustrate.

The purpose of lenders advertising comparison rates is to avoid lenders from advertising low-interest rates to entice borrowers into loans that end up costing more than they were led to believe because of their personal circumstances. Comparison rates help to determine the true cost of a loan by reducing all the fees and charges into a single percentage figure.

When we compare personal loan rates, you will be able to view the comparison rates for all lenders.

To find out more about comparison rates visit the Money Smart website.

What do typical rates look like?

Personal loan rates vary between 4% and 15%. For an unsecured personal loan, the rate will depend of how good your credit rating is. For a secured loan the rates are normally lower.

Are there any hidden costs to be aware of?

The only hidden costs you should be aware of is that if you default on your repayments you can incur expensive penalty fees. That is why it is always important to budget the amount you can safely afford, otherwise these penalties can add up.

What is a good interest rate on a personal loan?

A good interest rate on a personal loan would be anything below 10%. For a secured personal loan, an interest rate of 6% and under is good. For an unsecured personal loan, an interest rate under 8% is good.

To find out exactly how good interest rates can get, apply using the form above. We’ll scan through a few options of personal loan rates in Australia and find a loan provider that we will be able to offer you the finance you need.

How do personal loan interest rates work?

You could apply for either a secured personal loan or an unsecured personal loan, depending on how much money you need.

A secured personal loan means you provide an asset as collateral or security for the loan amount – usually a car, boat, motorbike or caravan. This is to assure lenders that in the event of you being unable to make payments you have something to fall back on. Personal loan rates for secured loans are usually lower because they are less risky for lenders.

An unsecured loan means that you do not provide an asset as a security. Lenders will check your credit history, though it is still a riskier option for them so interest rates can be higher.

How do go about taking out a personal loan?

Before you apply for a personal loan, make sure that you meet the eligibility requirements. These include:

• Being 18 years or above
• Having an Australian passport or permanent residency
• Providing proof regular income
• Possessing an Australian contact number

Once you’ve checked that you have all of those things you can go about submitting an application. How? Glad you asked. It’s as simple as scrolling up. That’s right, you can apply online, right here. Surprise! We are a lender-finder.

The lender we pair you up with will probably ask you to provide proof of the above documents to support the submission of your application.

personal loan rates – loan rate comparison is useful and easy

Personal loan rates can make a big difference in terms of what you will end up paying for borrowing funds. The important thing to remember when getting a personal loan is to do some research on the rates first.

You should consider whether you would prefer a fixed rate or a variable interest rate. You might prefer the security of a fixed interest rate or you might enjoy the flexibility of a variable interest rate.

It’s useful to look at the comparison rates too. Remember, these are all displayed next to the lenders advertised personal loan interest rates which helps to give you an accurate indication of the actual costs of the loan in comparison to other lenders.

Finally, before you apply just ensure you have met all the basic requirements. Then all you should do is get your supporting documents together, apply online and the lender we pair you with should be in touch soon. It’s as simple as that!

Example of how small personal loans work

Loan amount

$200 minimum
$2,000 maximum


Most small personal loan providers charge up to 20% as an establishment fee upfront. You’ll then pay a 4% monthly fee.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %.

In APR terms, the maximum annual percentage rate on our loans between $300 and $2000 is 199.43%.


months minumum
months maximum


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Example of how medium secured personal loans work

Loan amount

$2,100 minimum
$4,600 maximum


Annual Percentage Rate (APR) is 48% Comparison rate is 67.41% p.a.


months minumum
months maximum


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate