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6.57% p.a.
7.19% p.a.
$392
Fixed
Unsecured
$150
$0
$250
$23,519
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get a quick decision. Funds in 24 hours if approved
  • Loan amounts of up to $75,000, and up to $100,000 for home improvement projects and motor vehicles
 Disclosure
6.56% p.a.
6.56% p.a.
$392
Fixed
Unsecured
–
$594
$0
$23,513
6.43% p.a.
6.86% p.a.
$391
Fixed
Secured
$0
$0
$0
$23,440
6.74% p.a.
7.57% p.a.
$394
Fixed
Unsecured
$0
$0
$595
$23,615
6.45% p.a.
6.45% p.a.
$391
Fixed
Unsecured
$0
$0
$0
$23,451
6.84% p.a.
7.19% p.a.
$395
Fixed
Secured
$0
$0
$250
$23,671
6.89% p.a.
7.17% p.a.
$395
Fixed
Unsecured
–
$0
$199
$23,699
6.99% p.a.
7.27% p.a.
$396
Fixed
Secured
$0
$0
$200
$23,756
7.99% p.a.
8.99% p.a.
$405
Fixed
Secured
$0
$9
$265
$24,326
8.24% p.a.
8.90% p.a.
$408
Fixed
Secured
–
$5
$199
$24,470
8.69% p.a.
9.19% p.a.
$412
Fixed
Secured
$0
$0
$350
$24,730
10.69% p.a.
11.42% p.a.
$432
Fixed
Secured
$0
$0
$499
$25,906
More personal loans
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get a quick decision. Funds in 24 hours if approved
  • Loan amounts of up to $75,000, and up to $100,000 for home improvement projects and motor vehicles

More details
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 . View disclaimer.

Important Information and Comparison Rate Warning

Life happens and sometimes you may need a boost of cash to help meet an unexpected expense. Enter the unsecured personal loan, a loan tailored to personal use that does not require an asset to be used as security.

What is an unsecured personal loan?

Where secured personal loans require an asset to be used as a form of security for the bank or lender in case the borrower cannot repay the loan, an unsecured personal loan is not backed by an asset.

Unsecured personal loans are typically for smaller amounts of money and are likely to come with shorter repayment terms. These loans are the preference for expenses such as medical bills, renovations or repairs and even holidays, given they provide the benefit of flexibility compared to other forms of finance.

Before pursuing an unsecured personal loan, it could be worth performing an online credit check through one of three credit reporting agencies - Experian, Equifax and illion - to see if your credit history is up to scratch and whether you’re in a position to qualify for a loan. Banks and lenders are likely to ask for evidence that you will be able to repay the money loaned in the term agreed between you. It's also important to remember that borrowers with stronger credit scores will typically have access to lower interest rates than borrowers with bad credit.

Pros and cons of unsecured personal loans

To gain a better understanding of how unsecured personal loans work and what you can expect, below you will find some significant pros and cons.

Pros of unsecured personal loans

  • No security needed: As we mentioned, you don’t need to offer up an asset to take out an unsecured personal loan.

  • Application process can be quicker: With secured loans, the lender will need to take steps to verify your asset for security, meaning you will need to supply supporting documents. For example, if you were offering up your car, you may need registration documents, insurance documents, or even a valuation. But with an unsecured personal loan, this isn’t necessary, so you may find the application and approval process is quicker.

  • Fixed monthly payments: Unsecured personal loans typically come with fixed monthly payments, which can make budgeting and managing finances easier.

  • Shorter loan repayment terms: Though this could be considered a con, let’s discuss the positives of this. Firstly, you will be out of debt quicker, which is always a bonus. Secondly, paying off a loan quicker could result in fewer interest charges overall, which could save you money.

Cons of unsecured personal loans

  • Higher interest rate: Since the lender doesn’t have the same security as they do with a secured loan, you will likely be charged a higher interest rate.

  • Fewer lenders: You may also find that due to the heightened ‘risk’ of unsecured personal loans, there are fewer lenders willing to offer this type of loan. This means there may be fewer options for you to choose from.

  • Borrow less: Again, due to the ‘risk’ of unsecured personal loans, you will likely be further limited in how much you can borrow. If you need to borrow a big stack of cash, a secured personal loan may be your only viable option.

  • Strict repayment terms: Unsecured personal loans often have strict repayment terms, which may not be flexible if you experience financial difficulties.

  • Impact on credit score: Missed or late payments on an unsecured personal loan can negatively impact your credit score.

How to compare unsecured personal loans

When comparing unsecured personal loans, there are several key aspects to consider.

Interest rate

You should look at the interest rate advertised, as well as whether this rate is variable or fixed. A fixed rate will remain the same throughout the life of your loan, which may provide greater benefit to you when budgeting. A variable rate may go up or down depending on the cash rate or market activity.

Comparison rate

Not to be ignored is the comparison rate. This encompasses not only the interest rate but also fees and charges - such as monthly fees or other costs - associated with the loan. The comparison rate will give you an idea of how much you will pay per year in total fees and interest on the loan.

Fees

With the comparison rate in mind, look at exactly what fees and charges apply to the loan. If a loan has a ‘low’ interest rate, but a stack of other fees and charges like an upfront application fee, establishment fee, and so on - it may not end up being such a great bargain.

Loan size

Pay attention to the loan size you require and ensure you do not borrow beyond your means. If you need $10,000 for a home renovation, ensure that is what you’re applying for. Borrowing beyond your means could result in paying a greater amount of interest over the life of the loan or even financial difficulties arising.

Loan term

You should also look at the loan term, which is how long you have to pay back your money borrowed. Is it six months? A year? Ensure the loan type and repayment amounts will be manageable for you throughout the whole loan term.

Repayment terms

Along these same lines, know what your repayment terms will be. Will you be required to pay weekly, fortnightly, or monthly? How does this align with your pay cycle or any other financial commitments you may have? You should also find out whether there are break fees involved in making extra repayments or paying off your loan early.

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Frequently Asked Questions

The time it takes to get an unsecured personal loan can vary depending on the lender, and the amount of time the application process takes. Generally, online lenders can provide funds anywhere from 24 hours to a couple of days if your application contains no hiccups.

You can apply for an unsecured personal loan through a number of channels, either online through a specific bank or lender or by visiting a branch.

There are a number of fees you may find apply to your unsecured personal loan:

  • Upfront application fee
  • Establishment fee
  • Monthly fees
  • Late repayment fees
  • Extra repayment fees
  • Early repayment fees
  • Redraw fees

You may find that some, all, or different fees apply to your personal loan. Be sure to check your loan contract thoroughly before signing to have an accurate understanding of the potential fees, or speak with your lender.

In most cases, yes, but there may be fees involved. Each lender is different so you should check your loan contract or with your lender to find out.

Eligibility criteria will vary between lenders. Some lenders may have credit score requirements, and others may have specific employment requirements. Generally speaking, you will find the following criteria applies:

  • You must be at least 18 years old
  • You must be an Australian citizen or permanent resident
  • You must have proof of permanent, regular income

You may find that a credit card could be helpful if you are in need of some small bursts of cash over a period of time. However, credit cards can often have higher interest rates than personal loans, so it’s important to weigh up all your options carefully. Similarly, you may also wish to consider a personal line of credit.

If you default on your unsecured personal loan, your lender will likely report this information to one or a number of Australia’s credit reporting bureaus. This will be recorded and reflected in your credit score, which could make securing finance in the future more difficult.

The lender also may instigate court proceedings against you and you’ll likely be liable for its court expenses on top of the debt you owed. The court may mandate that the lender can collect any wages you earn until the debt is repaid, or force you to sell assets. If you are experiencing financial difficulty, be sure to speak with your lender about it.

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Savings.com.au follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts who ensure everything we publish is objective, accurate and trustworthy.

Finance Journalist

Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.