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Lender

FixedUnsecuredN/AN/A
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Personal Loan Fixed

    FixedUnsecuredN/AN/A
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    No Fee Joint Personal Loan

      FixedUnsecuredN/AN/A
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      Unsecured Personal Loan (Excellent Credit)

        VariableUnsecuredN/AN/A
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        Plenti Unsecured Personal Loan (Variable) (Excellent Credit)

          FixedSecuredN/A
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          Low Rate Personal Loan (Excellent Credit) (Secured)

            VariableSecuredN/AN/A
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            Secured Loan

              FixedUnsecuredN/AN/A
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              Personal Loan

                VariableUnsecuredN/AN/A
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                Overdraft

                  FixedUnsecuredN/AN/A
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                  Personal Loan

                    VariableSecuredN/A
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                    Line of Credit

                      VariableUnsecuredN/AN/A
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                      Personal Line of Credit

                        VariableUnsecuredN/AN/A
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                        Overdraft

                          VariableUnsecuredN/AN/A
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                          Unsecured Loan

                            VariableUnsecuredN/AN/A
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                            Personal Overdraft

                              VariableUnsecuredN/AN/A
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                              Unsecured Personal Overdraft

                                VariableUnsecuredN/AN/A
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                                Unsecured Personal Overdraft

                                  VariableUnsecuredN/AN/A
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                                  Unsecured Personal Overdraft

                                    VariableUnsecuredN/AN/A
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                                    Personal Unsecured Overdraft

                                      VariableUnsecuredN/AN/A
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                                      Overdraft

                                        VariableUnsecuredN/AN/A
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                                        Large Loan

                                          Important Information and Comparison Rate Warning

                                          All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

                                          The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates are for unsecured personal loans only for the relevant amounts and terms. The comparison rates for car loans and secured personal loans are for secured loans unless indicated otherwise. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

                                          Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of May 28, 2024. View disclaimer.

                                          Given there are loans on the market that don’t charge you for this, at first glance it seems silly to choose one that does. There are legitimate reasons for doing so, but being lazy and not comparing different personal loans shouldn’t be one of them.

                                          Here you’ll find some personal loans with no application fees, as well as information on what they usually cost, as well as how much of a difference a no-fee loan can make.

                                          What is a personal loan application fee?

                                          The personal loan application fee, also referred to as an establishment fee or just an upfront fee, is charged by lenders for the cost of arranging a personal loan for you. These costs might be to pay staff members, file and submit paperwork, assess your application digitally and more. This is a common fee in all types of loans and is often charged on both home loans and car loans.

                                          See also: The different personal loan fees explained

                                          What do personal loan application fees cost?

                                          Personal loan application fees tend to cost between $0 and $600, although a select few charge much more than this. Other lenders will charge a percentage of your borrowed amount as a fee instead, around 1-5% of the loan value.

                                          The big four banks (Commonwealth Bank, ANZ, NAB and Westpac) typically charge between $150 and $250. However, the Commonwealth Bank is offering unsecured personal loans with $0 establishment fees until February 2023.

                                          It’s always a good idea to compare these application fees when considering a personal loan as the difference can be hundreds of dollars.

                                          How many personal loans have no application fees?

                                          Application fees are very common on personal loans. In a sample of more than 200 products, Savings.com.au’s research found there are only 21 personal loans that charge a flat $0 or 0% to apply. That’s less than 10%.

                                          Other personal loan fees are less common, but there’s a good chance a loan you’re comparing will charge an upfront fee for an application.

                                          Are $0 application fee loans cheaper?

                                          Loans with $0 application fees aren’t always cheaper as some may charge a higher interest rate than those that do charge application fees. Borrowers are generally encouraged to factor in both the interest rate and fees when choosing a personal loan. That’s where comparison rates can be handy, as they’re designed to reflect the loan’s overall cost i.e. fees and interest.

                                          Related: Compare the lowest-rate personal loans

                                          Fixed vs variable personal loans

                                          Personal loans can have fixed and variable interest rates just as home loans and car loans can.

                                          There isn’t much difference between the two types of loans in terms of fees. There are $0 application fee loans on the market in both fixed and variable rates.

                                          Secured vs unsecured personal loans

                                          In almost all circumstances, you will end up paying more for an unsecured loan. Secured loans are much less risky from your lender's point of view, so they will not be as expensive. This may be reflected in reduced application fees, although reduced interest rates are more common.

                                          What other personal loan fees are there?

                                          Aside from upfront fees, personal loans can charge any of the following:

                                          1. Ongoing annual fees
                                          2. Monthly fees
                                          3. Other ongoing fees
                                          4. Documentation fees
                                          5. Encumbrance check fees
                                          6. Early repayment fees
                                          7. Missed repayment fees
                                          8. Redraw fees
                                          9. Break/early exit fees

                                          Before taking out a personal loan, make sure you understand what fees the lender will charge by reading the product disclosure statement (PDS). Some of these fees are more common like ongoing annual or monthly fees, while others are avoidable like break fees, which can be much larger on the off chance you have to pay them.

                                          The table below shows a selection of personal loans on the market with no ongoing fees, sorted by the interest rate (ascending order).

                                          Lender

                                          FixedUnsecuredN/A
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                                          Loan amounts from $2k to $75k
                                          • No ongoing or early exit fees
                                          • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
                                          • Get quick decision. Funds in 24 hrs if approved
                                          Loan amounts from $2k to $75k

                                          Low Rate Personal Loan Unsecured (Excellent Credit)

                                          • No ongoing or early exit fees
                                          • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
                                          • Get quick decision. Funds in 24 hrs if approved
                                          VariableUnsecuredN/AN/A
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                                          Plenti Unsecured Personal Loan (Variable) (Excellent Credit)

                                            FixedUnsecuredN/AN/A
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                                            Personal Loan

                                              VariableUnsecuredN/AN/A
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                                              Green Personal Loan

                                                FixedUnsecuredN/AN/A
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                                                Unsecured Personal Loan (Excellent Credit)

                                                  VariableUnsecuredN/AN/A
                                                  More details

                                                  Personal Loan Special

                                                    VariableUnsecuredN/AN/A
                                                    More details

                                                    Overdraft

                                                      Important Information and Comparison Rate Warning

                                                      All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

                                                      The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates are for unsecured personal loans only for the relevant amounts and terms. The comparison rates for car loans and secured personal loans are for secured loans unless indicated otherwise. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

                                                      Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of May 28, 2024. View disclaimer.

                                                      There are very few personal loans that have absolutely zero fees. Lender NOW FINANCE introduced a personal loan with no establishment, ongoing or early repayment fees last year - one of the few on the market - but only for loans under $15,000. There are only a handful of others, like:

                                                      • The Citi Personal loan plus
                                                      • The Liberty Personal loan
                                                      • The Police Credit Union Solar Eco Loan
                                                      • MoneyPlace Unsecured Personal Loan

                                                      But at the time of writing, some of these loans also charge late payment fees for missing a repayment. Across all the fees listed above, there’s bound to be at least one hidden in the terms and conditions.

                                                      Savings.com.au’s two cents

                                                      While upfront fees can be expensive (often costing a couple of hundred dollars), they aren’t the most important thing to consider. That would be the interest rate in the vast majority of cases. On a five-year loan with $0 fees for everything, this is the difference a good rate can make:

                                                       

                                                      $30,000 loan 

                                                      $50,000 loan 

                                                      6% p.a interest rate 

                                                      $34,799

                                                      $57,998

                                                      10% p.a interest rate

                                                      $38,245

                                                      $63,741

                                                      15% p.a interest rate 

                                                      $42,822

                                                      $71,370

                                                      Big differences in interest rates can be worth thousands of dollars, so there would certainly be situations where you would happily take a loan with a high application fee for lower interest rates.

                                                      Look for a personal loan with a combination of a low interest rate and a low application fee, but prioritise low interest rates.

                                                      A good way to accurately get a sense of how much a loan will cost you is to look at the comparison rate. Comparison rates take into account some charges and fees associated with a loan, giving you a more accurate sense of how much extra money you will need to pay the lender. If you notice a provider with a comparison rate substantially larger than its interest rate, this would suggest the loan has high fees. Using comparison rates, you can put a dollar value on how much money you will be paying your lender on top of your loan repayments, and ideally, pick the provider that minimises this.

                                                      Frequently Asked Questions

                                                      Interest is typically the biggest cost of a loan, and essentially reflects the price of borrowing money. Loans are charged interest because the lender assumes some risk for giving you a loan, and also wants to make some money back. Without interest, there’d be little incentive for institutions to lend money. Interest is usually displayed as an annual rate, but it is typically calculated on a daily basis. It is only charged on the outstanding debt, so as you pay off the loan, interest makes up a smaller portion of the repayments.

                                                      Common fees on personal loans include a loan establishment fee, early discharge fee, and/or an ongoing monthly fee. These tend to cover admin costs and are a way for the lender to make extra money. The extra cost is usually reflected in the comparison rate - a higher comparison rate could indicate more fees.

                                                      It could pay to look at personal loans holistically, beyond just fees and interest rates. For example, it might be worth paying an upfront fee for a personal loan if the interest rate is lower than other comparable products. Other things to look for include loan flexibility, extra repayments, loan length, and whether the loan is secured or unsecured.