How to Compare Personal Loans in Australia for the Best Deal

Nearly 46% of Australians entered 2025 already in debt, and 30% admitted they couldn’t set up a personal budget, according to The Salvation Army’s Moneycare research.

In a financial landscape where many individuals are stretched thin, choosing the right personal loan—rather than rushing into the first offer—can protect your long-term financial well-being.

Here’s how to effectively compare personal loans across Australia and make a smart, informed choice:

Start with Comparison Rates, Not Just Interest Rates

Comparison rates combine interest with most upfront and ongoing fees, giving you a more accurate view of the true cost of borrowing. Rates that seem low in adverts might still hide significant fees.

• For example, some lenders like P&N Bank offer unsecured personal loans around 9.74% p.a. (comparison rate 10.40%).
  
  
• Meanwhile, Money.com.au reports that the average unsecured personal loan interest rate in Australia is about 13.87% p.a..

Look Beyond Advertised Rates

The “from” rates you see online are usually reserved for the best possible applicants—those with excellent credit and strong financial history. Your personal offer may differ significantly.

• Money.com.au notes that borrowers with excellent credit might receive around 9.79% p.a., while those with poor scores could face rates up to 25.25% p.a..
  
  
• Always request a personalised quote to understand exactly what rate you’ll be offered.
  
  

Compare Loan Purpose and Terms

When it comes to personal loans Australia, the purpose and term of the loan can significantly affect the total cost. On average, Australians borrow about $22,643 with repayment periods of roughly 35 months. Depending on whether the loan is intended for debt consolidation, home renovations, or travel, lenders may adjust the structure and conditions accordingly.

Watch for Hidden Fees and Flexibility

Check for:

• Establishment fees, monthly service fees, and early repayment penalties,
  
  
• Flexible repayment options or holiday features that help you manage costs during changing circumstances.
  
  

These features can impact the overall value of a loan.

Use Comparison Tools to Narrow Down Options

Sites like Money.com.au offer tools to compare rates from various lenders in real-time. These tools list low fixed-rate loans (around 5.76% p.a. fixed, 6.55% comparison) and green loans as low as 3.99% p.a.. Though not all borrowers qualify for these low rates, they serve as a benchmark to gauge competitiveness.

Personalise by Your Credit Profile

Your rate is based on:

• Credit score,
  
  
• Income stability,
  
  
• Loan amount and term,
  
  
• Purpose, and lender-specific risk assessments.
  
  

Even small improvements in your credit history can reduce your interest rate significantly.

Seek Advice If Unsure

If you’re unsure which option is best for your circumstances, consider talking to a financial counsellor (like Moneycare) or using reputable advice platforms to help you assess and compare offers.

Quick Comparison Table

Step	What to Check
Comparison Rate	True cost including fees
Personalised Quote	What rate you’re actually offered
Loan Purpose & Term	Matches your needs & budget
Fees & Flexibility	Avoid surprise penalties and adjustability
Comparison Tools	Identify low-rate benchmarks
Credit Profile Impact	Understand your rate based on personal factors
Advice Resources	Seek support if comparing options feels overwhelming

By prioritizing comparison rates, seeking personalised quotes, and carefully reviewing fees and loan terms, you’re well-positioned to find a personal loan that fits your needs—without overpaying.

With nearly half of Australians facing debt challenges, informed borrowing decisions can make all the difference.

Would you like help locating low-rate personal loans in Australia, or tools to compare them easily based on your profile?