Australian Personal Loans Guide — Compare Rates, Fees & Eligibility
Guide to Australian personal loans: how they work, personalised rates, comparison rates, fees, eligibility and total-cost checks.
What is a Personal Loan?
A personal loan lets you borrow an amount set by the lender and repay it with interest over a fixed term, commonly one to seven years. Personal loans can be secured or unsecured.
Published Lender Examples (checked July 2026)
Australian lenders do not publish one universal credit-score-to-rate table. Current official examples show a much wider range than the previous figures on this page:
- Westpac unsecured personal loan · 7.29%–22.19% p.a.; comparison rate 8.69%–23.48% p.a.
- NAB fixed personal loan · 7.00%–21.00% p.a.; comparison rate 8.05%–21.88% p.a.
- CommBank variable personal loan · 7.25%–22.25% p.a. from 16 April 2026
Sources: Westpac, NAB and CommBank, checked July 2026. These are lender examples, not a market-wide quote. Your rate can differ and rates can change.
Key Features to Compare
1. Interest Rate vs Comparison Rate
The interest rate is what you pay on the borrowed amount. The comparison rate includes the interest rate and most fees and charges for a stated example. It is a useful cost guide, but it does not include every possible fee and it changes with the loan amount and term. Source: ASIC National Credit Code guidance, checked July 2026.
2. Fees
- Application or establishment fee
- Monthly administration or service fee
- Early repayment fee, particularly on some fixed-rate loans
- Missed payment, default fee or default interest
Fees vary by product. Check the credit contract rather than relying on a generic range.
3. Loan Term
Shorter terms mean higher monthly payments but less total interest. Longer terms reduce the monthly payment but increase the total cost.
4. Flexibility
- Can you make extra repayments without penalty?
- Is there a redraw facility?
- Can you change your repayment schedule?
Eligibility
Most lenders require:
- legal age and identity requirements
- lender-specific residency or visa requirements
- enough verified income to service the loan after expenses and existing debts
- a credit history and risk profile acceptable to that lender
- lender-specific employment or self-employment evidence
How to Apply
- Check your credit score — free through Equifax, Experian, or Illion
- Calculate what you can afford — factor in all monthly expenses
- Compare lenders — look at comparison rates, not just headline rates
- Check whether a quote affects your credit report — some eligibility checks are soft enquiries; a full application may create a credit enquiry
- Submit your application — have ID, payslips, and bank statements ready
Tips for Getting the Best Rate
- Review your credit report and correct genuine errors before applying
- Compare secured and unsecured offers if you have an eligible asset, including the repossession risk
- Apply with a co-borrower with strong credit
- Avoid multiple full applications in a short period — credit enquiries remain on an Australian credit report for five years, but there is no universal fixed point deduction