Personal loan rates and fees trending upwards

Personal loan interest rates have climbed over the past year, although it’s still possible to get loans for under 6 per cent.

The average advertised interest rate of all the personal loans listed on RateCity, at the end of December 2018, was 12.10 per cent.

That compares to an average rate of 11.89 per cent at the end of December 2017.

Meanwhile, the average application fee rose from $169.00 to $179.40 during that time.

For borrowers looking for some of the cheapest personal loans in Australia, G&C Mutual Bank is offering an advertised rate of 5.99 per cent and a comparison rate of 6.20 per cent (see table below).

Community First Credit Union, First Option Bank and Police Bank have personal loans priced under 6.50 per cent.

Queensland Country Credit Union, IMB Bank, Greater Bank, Auswide Bank, Regional Australia Bank and Hunter United have personal loans with interest rates under 7 per cent.

Please note that personal loans with the lowest interest rates aren’t necessarily the best personal loans for all borrowers.

Compare personal loans