Big four bank NAB has made a major cut to its personal loan rates, and is now a market leader among its major bank competitors.
This takes the minimum advertised interest rates on these loans to 6.99% p.a and the maximum to 18.99% p.a (comparison rates may vary*).
The table below features personal loans with some of the lowest interest rates on the market.
This means NAB once again has the most competitive personal loan rates among the big four, after Westpac last week cut its unsecured personal loan interest rate by 200 basis points to 9.99% p.a (11.16% p.a comparison rate*).
Other personal lenders to cut interest rates recently include:
- Greater Bank: decreased the interest rates on its New Car Loan and Secured Personal Loan by up to 51 basis points to 5.99% p.a (6.37% p.a comparison rate*)
- SocietyOne: dropped the interest rate on its Unsecured Loan for 'Excellent Credit' customers by 60 basis point to 6.39% p.a (6.39% p.a comparison rate*).
NAB's 6.99% p.a interest rates are also much lower than the approximate 12% p.a average for unsecured rates on the market, according to Savings.com.au's research.
In terms of fees, NAB's unsecured personal loans charge a $150 application fee and a $10 monthly service fee, with no exit fees or early repayment fees.
More personal loan rates are being reduced lately, which might suggest lenders are expecting an increase in demand for credit.
"As government stimulus starts to pull back, we anticipate personal loans may experience a revival, particularly among sub-prime borrowers who may not be eligible for other kinds of financing," Kevin James, General Manager Advisory and Solutions at Equifax, said last year.
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