What will your loan repayments be?

Personal loan interest rates in Australia typically range from 6% to 25% per year depending on the lender, your credit score and loan amount. Rates under 10% are generally considered competitive. Always compare the comparison rate (which includes fees) rather than just the advertised rate.

A comparison rate combines the interest rate with most fees and charges into a single percentage, giving you a more accurate picture of the true cost of the loan. In Australia, lenders are required to display the comparison rate alongside the advertised rate. Always use the comparison rate when comparing loans.

Fixed rate loans offer certainty — your repayments stay the same regardless of interest rate changes. Variable rate loans may offer lower initial rates and more flexibility (like extra repayments without penalty) but your repayments can change. For most personal loans, fixed rates are preferable as they make budgeting easier.

Choose the shortest term you can comfortably afford — longer terms mean more interest. Make extra repayments when possible (check for early repayment fees first). Compare multiple lenders — rates vary significantly. Consider a secured loan if you have an asset to offer as security, as rates are typically lower.