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.
- 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 Savings.com.au's research.
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