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- Big banks pricing personal loans much higher than smaller rivals
Big banks pricing personal loans much higher than smaller rivals
A range of customer-owned institutions is significantly undercutting the big four banks, according to a new analysis of personal loan interest rates.
Focusing solely on personal loans, rather than car loans, the big four banks all have double-digit interest rates (see table below).
NAB offers the lowest big four personal loan interest rate, with its Variable Rate Loan starting from 10.69 per cent (comparison rate 11.58 per cent).
| Lender | Product | Advertised rate | Comparison rate |
|---|---|---|---|
| NAB | Variable Rate Loan | 10.69% | 11.58% |
| Commonwealth Bank | Fixed Rate Personal Loan (5 years) | 11.99% | 12.87% |
| ANZ | Fixed Rate Loan | 12.45% | 13.32% |
| Westpac | Unsecured Personal Loan | 12.99% | 14.14% |
By contrast, there are various mutual banks, credit unions and building societies offering low-rate personal loans (see table below).
For example, G&C Mutual Bank’s Fair Rate Personal Loan Diamond is priced at 5.99 per cent (comparison rate 6.20 per cent).
Credit Union SA’s Special Fixed Rate Personal Loan also goes as low as 5.99 per cent (comparison rate 6.26 per cent).
Cairns Penny Savings & Loans, Community First Credit Union, IMB Bank, Newcastle Permanent Building Society, Police Bank, Queensland Country Credit Union, Regional Australia Bank and Service One all offer personal loans with a ‘6’ in front of them.
There are even lenders that offer personal loans with interest rates under 5 per cent, although these have to be connected to a home loan or a term deposit.
| Lender | Product | Advertised rate | Comparison rate |
|---|---|---|---|
| G&C Mutual Bank | Fair Rate Personal Loan Diamond | 5.99% | 6.20% |
| Credit Union SA | Special Fixed Rate Personal Loan | 5.99% | 6.26% |
| Community First Credit Union | Home Improvement Loan | 6.12% | 6.39% |
| Cairns Penny Savings & Loans | Secured Loan | 6.25% | 12.07% |
| Police Bank | Green Loan | 6.49% | 6.63% |
| Newcastle Permanent Building Society | Personal Loan Secured | 6.69% | 8.41% |
| Queensland Country Credit Union | Reno Loan | 6.79% | 7.31% |
| Service One | Eco Personal Loan Secured | 6.79% | 7.39% |
| IMB Bank | Secured Personal Loan | 6.89% | 7.24% |
| Regional Australia Bank | Enviro Loan | 6.95% | 7.83% |
Please note that the cheapest home loans aren’t always the best home loans.
Disclaimer
This article is over two years old, last updated on November 25, 2018. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent personal loans articles.
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Product database updated 26 Nov, 2024
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