Personal Loan Interest Rates

Find the best personal loan and interest rate by comparing your finance options right here with Savvy. 

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on October 4th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Personal Loans Banner

The features and benefits of personal loans

Highly competitive rates

By comparing a wide range of options through Savvy, you can consider loans with competitive interest rates tailored to your specific profile.

Borrow whatever you need

You’ll be able to apply for the maximum amount you can afford to borrow up to $75,000, with the minimum loans available sitting at just $2,000.

Repay over up to seven years

As part of your loan agreement, you get to decide the time over which to repay your loan, with terms available as short as one year and as long as seven.

Able to be reduced with early payments

The total interest you pay on your loan is able to be cut down significantly if you pay above the minimum required amount in each instalment.

Choice between fixed and variable

There are a variety of lenders and loans on the market to choose from, and many give you the choice between fixing your rate or leaving it variable.

No upfront payments

There won’t be any requirement for you to pay any interest, fees or a lump sum upfront; your payments begin the month (or week or fortnight) after you sign your loan agreement.

Optional security

You get to choose whether to add an asset, such as your car, boat or caravan, to your loan as security or apply for financing without any collateral.

No account-keeping fee

We’re partnered with lenders who offer loans without any monthly fees, while some others also won’t charge you a costly establishment fee on top of that.

Types of personal loan

Why compare personal loans through Savvy?

The factors which affect your interest rate

Personal loan interest rates explained

What different types of interest rate can I choose from?

When it comes to personal loans, it’s important to be able to distinguish between the two types of interest rate which can be charged on your personal loan: fixed and variable interest.

Fixed interest rates

The most common type of interest occurring on personal finance, fixed interest is when your lender locks in your rate from the outset, preventing it from changing across your loan term. Many borrowers prefer the stability which fixed rates bring, as loans with consistent repayments are much better when it comes to budgeting around them into the future. On top of this, you won’t have to worry about any unfavourable interest rate changes during your term, meaning the cost of your loan can’t increase. However, in equal measure, you won’t be able to take advantage of rate decreases, which could save a significant amount.

Variable interest rates

Variable interest, unlike its fixed counterpart, remains open to market movement across your loan term. Perhaps the greatest benefit of this is that if you take out your loan at a time when rates across the board are expected to fall, you could end up paying much less for your loan than if it had been fixed at its initial rate. It’s important to note, though, that these rates could end up costing you more if the reverse happens and your lender increases their interest rate. These rates also don’t offer the same stability as fixed interest.

How do lenders calculate interest?

Interest is charged on personal loans daily and added to each instalment, whether you choose to pay weekly, monthly or fortnightly. This means that the percentage rate on your loan is multiplied by your outstanding balance each day. Because of this, you may find you pay slightly less interest by making your repayments more often, such as weekly or fortnightly instead of monthly, as your outstanding principal has the opportunity to decrease more frequently. If you paid monthly, your interest would be calculated on your base $30,000 loan amount for the full 30 days or so, but fortnightly repayments would mean this would reduce after 14 days.

Lenders decide on the interest rates for their personal finance products, as well as all other loans, based in large part on the Reserve Bank of Australia (RBA) cash rate. This national rate can rise and fall in line with many different variables, with the most significant being the nation’s economy and inflation. If the RBA’s cash rate rises or falls, lenders can choose whether to pass these increases or decreases onto their customers.

How else should I compare personal loans?

Although interest is one of the most important ways to compare different personal loan offers, there are many other ways you can go about selecting which is the best for you. Fortunately, you can do this right here with Savvy, as we’re partnered with a range of reputable lenders from around Australia to deliver you the highest-quality comparisons across a variety of key areas. The other primary factors to consider when comparing loans are:


The other main cost to keep an eye on when comparing loans is their fees. There are several charges which can apply to personal loans, but many lenders don’t charge some or most of these on their offers. Establishment fees can cost up to around $600, but you can access loans without any charge for setting up your agreement. This is also the case for ongoing service fees, which may be charged up to $10 in some cases but are often not charged. Late payment fees will be charged in all cases, though, which may set you back up to $35 or more for each missed instalment.

Loan amounts

Of course, it’s crucial above almost all else that your lender can offer you the amount you need to borrow to cover whatever expenses need covering. This is especially the case for those looking to take out a loan on the smaller or larger ends of the spectrum, as financiers’ minimum and maximum amounts can vary. While many lenders cap their unsecured loans at $50,000, there are those in the market right now who can offer as much as $75,000 without any asset collateral. Similarly, there are lenders who can approve applications for as little as $2,000 but others who may enforce a minimum of $5,000.

Loan terms

On top of this, you should always make sure you can space out your repayments over a period which suits your needs. This can vary from one to seven years generally, but different lenders will offer different deals. For instance, there are some lenders whose minimum repayment term sits between 18 months and three years, while there are many others who only allow borrowers to repay their debts over five-year terms. You should approach the comparison process with a clear idea of what time you need to cover your debts.

Repayment flexibility

You should always have the ability to pay as often and as freely as you like without the threat of a hefty penalty hanging over your head. These days, most personal loan financiers (particularly private online lenders) won’t charge any additional or early repayment fees, but it’s always important to establish whether you have the freedom to do so from the outset of your loan. Making extra contributions will reduce the time it takes to pay off your debt and, crucially, the amount of interest you’ll be required to pay overall.

Other features

Finally, your loan may come with other handy features which can benefit you during your repayment term. A common one is the ability to set your repayment schedule to either weekly, fortnightly or monthly instalments (which not all lenders offer). Another may be a redraw facility, which enables borrowers to access additional payments they’ve made across their loan and withdraw for any purpose, which can serve as a more convenient alternative to seeking out another loan but can also end up costing you more in interest and fees in the long run.

Common questions about personal loan interest rates

How much can I borrow?

Your borrowing power depends on the same types of factors that decide your interest rate: credit history, employment and income stability and others. The majority of personal loans are unsecured, which offer borrowing ranges from $2,000 up to $75,000. However, if you add security to your loan, you can expand this in some cases up to $100,000.

What other costs will I need to account for on my personal loan?

There are several different fees that are likely to be charged on your personal loan. You should keep these firmly in mind when comparing between different personal loan offers, as they can also form a key part of the cost of your loan. The following may be charged to your loan within their price ranges:

  • Ongoing fees: $0 to $10
  • Establishment fee: $0 to $595
  • Early repayment fee: $0 to $600+ (depending on time left on loan)
  • Late payment fees: $15 to $35
What is a comparison rate?

Your loan’s comparison rate is a figure obtained by combining your interest rate with the main fees present on your loan. This is designed to give borrowers a more accurate indication of the cost of their loan from the outset, as interest obviously isn’t the only expense they’ll be paying during their loan term.

For this reason, it’s recommended that you use your comparison rate in place of interest when it comes to any personal loan calculations.

Am I guaranteed to receive the advertised rate?

No – the advertised rate is the minimum possible interest that can be charged for any borrower. This means that you can only receive this rate if you have an exceptionally strong borrower profile, such as an excellent credit history, have a stable job and earn a high income.

If you fall short of this, your interest rate will be higher. However, that doesn’t mean that your rate will be high; you can still receive an affordable rate if you aren’t the perfect applicant.

Does my loan’s security affect my interest?

Yes – secured loans come with lower interest rates than unsecured loans. This is because they’re considered safer due to the fact that the lender has an asset to fall back on and sell in the unlikely event that the borrower becomes unable to pay their loan in full. Recouping funds in the same instance on an unsecured loan is more difficult, which is why they come at higher rates to compensate for this fact.

Will my choice of lender affect my rate?

It can – aside from the fact that all lenders are different when it comes to the rates that they charge, the type of lender you go for can also inform this. For instance, when it comes to personal loans, private online lenders and peer-to-peer (P2P) lenders often come with the lowest interest rates. This doesn’t necessarily mean that they’ll be the best for you, though. You may opt for a personal loan with your another lender due to extra features and benefits they can offer despite the fact that their rates are higher.

How often can I make repayments?

You get to decide how often you make your loan repayments, with lenders offering the choice of weekly, fortnightly or monthly instalments. You could actually save money by paying fortnightly instead of monthly, as lenders essentially equate 26 fortnights to 13 months’ worth of repayments each year.

Will making extra repayments reduce the amount of interest I pay?

Yes – on top of choosing your schedule, most of our lenders offer borrowers the ability to make additional contributions to their personal finance deal without incurring any fees for doing so. This enables you to complete your loan repayments early, a fact which reduces your payable interest. Interest is calculated based on your remaining loan principal, so if your outstanding debt decreases at a faster rate, so too will your interest.

For instance, you’d save over $1,000 in interest overall by paying an extra $100 each month on your $30,000, five-year loan at 7.5% p.a.

Helpful personal loan guides

Still looking for the right personal loan?

Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.