Best personal loans for May 2020

A lot has changed in our world over the past two months due to COVID-19, and it’s making a noticeable impact on the way we use money.

Australians are spending less on non-essentials, such as holidays and entertainment, and more on non-discretionary expenses, including groceries, medical costs and debt repayments, according to NAB research.

It’s not surprising, given that almost 600,000 people lost their jobs in April, according to new data from the Australian Bureau of Statistics.

And despite the official cash rate at a record low due to multiple rate cuts in the past year, Australians are also taking on less in short-term debt, with the value of new personal loan commitments declining by 8.2 per cent in March, according to the ABS.

It might not be the best time to take out a personal loan for some people. But if you’re in need of additional funds to get you through these tough economic times, it’s a good idea to compare the interest rates, fees and features on various personal loans before committing to one.

If you’re doing your research on what options are out there, RateCity has compiled some of the top-rated personal loans for May 2020.

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

What are excellent credit personals loans?

Many lenders offer lower interest rates for people with better credit scores. These borrowers are seen to be reliable, so lenders want to do business with them.

If you’ve worked hard to achieve an excellent credit rating, you’re likely to secure a more competitive interest rate. Keep in mind your personal loan application isn’t guaranteed to be approved solely because of your excellent credit status, though your chances are higher.

Top five rated excellent credit personal loans

Here are the top five rated personal loans today for borrowers with an excellent credit score. The ratings assume an unsecured $20,000 loan on a 36-month loan term.

What are green personal loans?

Some lenders provide personal loans specifically for those borrowing for sustainability purposes. Often, these green personal loans have lower interest rates or have extra features built into them, such as the ability to make additional repayments.

Different green personal loans can be used for different purposes, so it’s best to check if you can use the loan for what you want. Some of the things you could use your green personal loan for include:

• solar panels.
• energy-efficient hot water systems.
• energy-efficient heating systems or air-conditioning.
• home insulation.
• rainwater tanks.
• energy-efficient white goods.
• other eco-friendly home improvements.

Top five rated green personal loans

Here are the top five rated personal loans today for borrowers who want to use loan funds for an eco-friendly purpose. The ratings assume a $10,000 loan on a 36-month loan term.

Where to find up-to-date personal loan information

If you haven’t got time to check each lender’s individual website regularly, RateCity has your back. Stay up-to-date with RateCity’s Personal Loans Leaderboards, where personal loans are tracked and rated daily. 

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