ANZ slashes personal loan interest rates by nearly 2.5%

author-avatar By on May 14, 2021
ANZ slashes personal loan interest rates by nearly 2.5%

Three of the four major banks have now made substantial cuts to personal loan rates, with ANZ slashing fixed rates by up to 249 basis points.

On Wednesday, ANZ cut the interest rates on its fixed and variable rate unsecured personal loans:

  • ANZ variable rate personal loans were cut by 249 basis points to a minimum rate of 10.50% p.a (11.38% p.a. comparison rate*)
  • ANZ fixed rate personal loans were cut by 151 basis points to a minimum rate of 8.99% p.a (9.88% p.a. comparison rate*)

ANZ's secured personal loans were not changed. 

The table below features personal loans with some of the lowest interest rates on the market.

This change by ANZ leaves Commonwealth Bank as the only major bank to not raise or increase personal loan rates in 2021, having last done so in March of 2020. 

In March this year, Westpac slashed various personal loan rates by 2%, before increasing some others by up to 150 basis points in April

NAB too decreased interest rates on its unsecured fixed and variable personal loans by as much 300 basis points in March to its record low of 6.99% p.a (maximum 18.99% p.a, comparison rates may vary*). 

The average personal loan interest rate among the big four banks at the time of writing is now 9.49% p.a, although that is based on the minimum interest rate available. 

Higher interest rates can be charged based on the customer's risk profile and credit rating

Plenti cuts interest rates for 'excellent' credit borrowers 

Online lender Plenti (formerly RateSetter) has lowered the interest rate on offer for its 'Excellent Credit' loan by 91 basis points to a minimum rate of 5.48% p.a (max rate 7.49% p.a, comparison rates vary*).

The fixed loan has a minimum term of three years, while the variable loan can have a minimum length of just one year. 

These changes follow similar cuts last month, when Plenti cut the interest rates on its fixed and variable 'good credit' personal loans by up to 140 basis points :

  • The good credit variable personal loan now has a minimum interest rate of 8.59% p.a (comparison rate 10.27% p.a*)
  • The good credit fixed personal loan now has a minimum interest rate of 7.49% p.a (comparison rate 9.16% p.a*)

There was also a 100 basis point drop to its Average Credit rates and a 40 basis point decrease to its 'Very Good Credit' rates. 

Following these cuts, and other interest rate changes made by the likes of NRMA, St. George, Bank SA and Bank of Melbourne, the average personal loan rate across more 200 products is 9.88% p.a (minimum) according to's research. 

Related: What are the lowest rate personal loans

Lender Harmoney posts big growth in personal loans 

Personal loan applications might still be down almost 15% year-on-year according to Equifax, but there are signs this trend is reversing, especially with car loan demand rising compared to 2020's large decreases. 

New Zealand based personal lender Harmoney has this week reported a substantial growth in Australian personal loan customers.

According to Harmoney's latest results, new customer loans in Australia are double that of New Zealand, forecast to exceed $300m in value by the end of July 2021 at a growth rate of 180%.

Having exceeded NZ$2bn in total loans originated, Harmoney is the biggest online personal lender in Australasia. 

Image via ANZ


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $30,000 loan over 5 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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William Jolly joined as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.


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