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Credit unions lead the way for low interest rates
A diverse range of small lenders is undercutting the big banks and offering some of the lowest-rate personal loans in Australia.
When it comes to personal loan interest rates, ANZ, Commonwealth Bank, NAB and Westpac are being challenged by customer-owned institutions and non-bank lenders.
Catalyst Money and Illawarra Credit Union – which are both divisions of Community Alliance Credit Union – are offering personal loans with an advertised rate of 5.25 per cent and a comparison rate of 5.89 per cent (see table below).
Non-bank lender 360 Finance also has low-rate personal loans, with its Leisure Finance product priced at 5.49 per cent (comparison rate 6.36 per cent).
G&C Mutual Bank has an advertised rate of 5.99 per cent and a comparison rate of 6.20 per cent for its Fair Rate Personal Loan Diamond product.
By contrast, personal loan interest rates for the big four start from:
- ANZ 10.99 per cent (comparison rate 11.87 per cent)
- Commonwealth Bank 12.99 per cent (comparison rate 13.86 per cent)
- NAB 12.69 per cent (comparison rate 13.56 per cent)
- Westpac 12.99 per cent (comparison rate 14.14 per cent)
| Lender | Product | Advertised rate | Comparison rate |
|---|---|---|---|
| Catalyst Money | Online Personal Loan Package | 5.25% | 5.89% |
| Illawarra Credit Union | Online Personal Loan Package | 5.25% | 5.89% |
| 360 Finance | Leisure Finance | 5.49% | 6.36% |
| 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% |
| 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% |
Please note that the cheapest personal loans aren’t necessarily the best personal loans.
Disclaimer
This article is over two years old, last updated on July 8, 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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