BestFind.com.au provides factual information in relation to financial products. While
attempts to make a wide range of products and providers available, it may not cover all the
to you. Moreover, we cannot be responsible for changes made to this information by product
inaccurate information obtained from a product provider. All product information comes from the
provider or publicly available information and to the best of our knowledge is correct at time
The information published on BestFind.com.au is general in nature only and does not consider
objectives, financial situation or particular needs and is not recommending any particular
product to you. If you
decide to apply for a product you will be dealing directly with that provider and not with
BestFind.com.au recommends that you read the relevant PDS or offer documentation before taking
Don’t pay more than you need to – take a low rate personal loan.
Whether you’re thinking about buying a car, a home, or consolidating debt, the personal loan you choose can make a big difference. Low interest personal loans can reduce the cost of your finance while making your repayments affordable. Use our interest rate comparison tool to help you choose the personal loan that suits you.
Comparing low interest loans
The amount you repay each period is determined by your loan size and interest rate. This means that if two identical loans differ only on interest rate, the lower rate loan will usually have smaller monthly repayments. This is what makes low rate personal loans competitive. However, in most cases, loans differ on a variety of features besides interest rate, and you’ll need to think about:
- Flexible repayments. This can be a big plus if you want to make repayments when you receive your earnings. In Australia, loan repayment schedules are often monthly, however, this doesn’t suit everyone. If you get paid fortnightly, you may find it convenient to choose a loan that allows fortnightly repayments. Similarly, repayment flexibility may be related to your preferred payment method. If direct debit works best for you, a personal loan that offers this option can be an advantage.
- Fees and charges. Australian personal loans can vary a lot with regard to fees and charges. It’s not hard to get caught up comparing ideals only to find that a low rate loan comes with unnecessarily high fees. From penalties for additional repayments to setup and ongoing (maintenance) fees, it’s important to remember that extra charges can add up. It’s a good idea to think of personal loans as complete packages rather than comparing interest rates alone. Comparison rates are an excellent way to do this as they factor in costs and fees of different personal loans.
- Additional or early repayments. Often, fixed interest rate loans come with limitations on when you can make repayments, including penalties for additional repayments. This isn’t always the case though, so when comparing low rate loans, look for these restrictions. You may find the ability to make early repayments and be debt-free sooner is more important than a slightly lower interest rate.
- Keep your borrowing requirements in mind. In other words, think about the loan terms and the amount of money you’ll need. Will it be realistic for you to pay back the entire principle within the loan term? Fixed interest rate loan terms often range between one to five years, while variable rate loans might have longer repayment periods. Sometimes, though, loan providers offer only a limited range of terms, such as one-, three- or five-year terms.
Where do I look for low rate personal loans?
Different personal loan deals incorporate different features, meaning there are plenty of options to suit a diversity of requirements. Amongst these, low interest personal loans can be found. Some of the main personal loan types are listed here:
Unsecured personal loans do not require you to put up any of your assets as collateral. In this respect, they are relatively flexible. Most unsecured loans let you spend the funds on anything you choose – to fund one larger purchase or several smaller ones. For these reasons, unsecured personal loans tend to have higher interest rates than compared to secured personal loans.
Secured personal loans
As the name suggests, you’ll need to secure these loans with some form of personal asset. This ensures the lender can seize and sell your car, house, or whatever you’ve used as collateral if you default. Because secured loans involve less risk on the part of the loan provider, they generally offer lower rates. Likewise, when you secure a personal loan, you may only be allowed to use the credit for a particular purchase. The amount you can borrow may also be limited to the value of your collateral, in some instances.
Loans to consolidate debt
By rolling all your existing debts into a single personal loan, you can often reduce the amount you spend on interest payments. A good example of this is consolidating several credit card debts with high interest rates into one personal loan. In Australia, debt consolidation loans are mostly unsecured. When you’re looking to consolidate debt, a low rate personal loan can help you save a significant amount over time.
Find the lowest interest rate loans – 3 steps
- Check your credit score for free at getcreditscore.com.au. Your personal credit history updates all the time, and it is worth knowing if you have a good credit score. This will increase your chances of being approved for a personal loan when you apply.
- Get all the documents ready that will help you prove your identity and finances. Payslips, identification and details of your assets, liabilities, salary, and expenses are all necessary to show you can make the loan repayments.
- Compare your personal loan options online and apply. With the comparison guide and table above, you can start looking at different low rate loan features.
What should I look for besides low interest rates?
When you compare low rate loans, it’s a good idea to look at some other key features before making your choice. This will help you make a more informed decision and find a loan product to suit your requirements.
- Do you need a secured or unsecured personal loan? Would a line of credit loan such as a personal overdraft or a lump sum payment suit you better? When you have clarified your borrowing needs, you can narrow or filter your search to find more relevant options.
- What additional loan features could be helpful for me? Redraw facilities enable you to make extra repayments and access funds when you need them. Or, you may find that simple account management such as a mobile app adds more value for you personally. Today there are a host of extra features designed to make personal loans more competitive, so look out for these while comparing.
- Are you eligible for the loan? Most loans are only available to Australian permanent residents and citizens who are 18. Additionally, loan providers often require that you earn a minimum income of $14,000 per year, to show that you can make repayments.
- What kind of flexibility does the loan give you? This could relate to flexibility around repayments, around how you use your loan funds, or how it affects your lifestyle. An example might be the flexibility to top up your personal loan when necessary.
Popular personal loans searches
View all search queries