NAB makes significant cut to personal loan rates

author-avatar By on March 29, 2021
NAB makes significant cut to personal loan rates

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.

NAB has today decreased interest rates on its unsecured fixed and variable personal loans by 300 basis points.

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.

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

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/AN/AMore details
FAST APPROVAL TIME

Unsecured Personal Loan (Excellent Credit) (Amount > $5000)

  • No ongoing fees
  • Flexible repayment options
  • No security required
FAST APPROVAL TIME

Unsecured Personal Loan (Excellent Credit) (Amount > $5000)

  • No ongoing fees
  • Flexible repayment options
  • No security required
FixedUnsecuredN/AMore details
CHECK YOUR RATE IN 2 MINUTES
  • No ongoing fees
  • No application fees
  • Apply online
CHECK YOUR RATE IN 2 MINUTES
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 October 26, 2021. View disclaimer.

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. 

See how these compare to other personal loan fees here

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


Image source: Wikipedia Commons 

Disclaimers

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 Savings.com.au

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

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au 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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author-avatar
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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