ANZ slashes personal loan interest rates by nearly 2.5%

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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.

Lender
Advertised rate Comparison rate* Monthly repayment Interest TypeSecured TypeEarly Withdrawal FeeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application

FixedUnsecuredN/AMore details
APPLY ONLINE

Low Rate Personal Loan Unsecured (Excellent Credit)

  • No extra repayment or early exit fees
  • Up to $75,000 in loan amounts
  • Funding approved within 24 hours
APPLY ONLINE

Low Rate Personal Loan Unsecured (Excellent Credit)

  • No extra repayment or early exit fees
  • Up to $75,000 in loan amounts
  • Funding approved within 24 hours
VariableUnsecuredN/AN/AMore details
NO ONGOING FEES

Plenti Personal Loan (Excellent Credit Rating) (Variable)

  • No application fees
  • No ongoing fees
  • Apply online
NO ONGOING FEES

Plenti Personal Loan (Excellent Credit Rating) (Variable)

  • No application fees
  • No ongoing fees
  • Apply online
FixedUnsecuredN/AMore details
CHECK YOUR RATE IN 2 MINUTES
  • No ongoing fees
  • No application fees
  • Apply online
CHECK YOUR RATE IN 2 MINUTES
FixedUnsecuredN/AN/AMore details
NO ESTABLISHMENT, ACCOUNT OR EARLY REPAYMENT FEES

No Fee Personal Loan

  • No security required
  • Can apply online
  • Fast time to funding
NO ESTABLISHMENT, ACCOUNT OR EARLY REPAYMENT FEES

No Fee Personal Loan

  • No security required
  • Can apply online
  • Fast time to funding
FixedUnsecuredN/AMore details

Liberty Personal Loan (Very Good Credit History)

Rates based on a loan of $30,000 for a five-year loan term. *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, Rates correct as of January 25, 2022. View disclaimer.

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. 

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

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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William Jolly joined Savings.com.au 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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