Some of the top-rated personal loans in September 2024

New data shows that Australians borrowed slightly more for personal loans in July 2024. But what will this mean if interest rates are cut as some banks are forecasting?

According to the latest Lending Indicators from the Australian Bureau of Statistics (ABS), in July 2024 the value of new loan commitments for total fixed term personal finance rose 2.2% to $2.7 billion, which was 20.2% higher compared to a year ago. This is a slightly smaller increase than the 2.4% rise recorded in June 2024.

While the Reserve Bank of Australia (RBA) governor has indicated that the central bank is unlikely to cut the national cash rate before the end of 2024, economists from several of Australia’s big banks are forecasting a cut to take place sometime in early to mid 2025, due to moderation of Australia's inflation.  Anticipation of this rate cut is already affecting some fixed home loan interest rates and term deposits.

But it’s important to note that potential changes to the national cash rate may not always affect your personal loan interest rate. This is because many other factors may go towards the personal loan rate you’re offered, from how much you plan to borrow, to your loan purpose, to your credit score. Plus, the more features and benefits a personal loan offers, the more likely it may have a higher interest rate and or charge higher fees. It’s important to look beyond the interest rate when comparing personal loans and consider which options may offer the best value for your financial situation and personal goals. 

To help make the process of comparing personal loans simpler, RateCity’s Real Time Ratings™ combine the cost and flexibility of different personal loans into a single star rating, which is regularly updated to better reflect its current value. The top-rated personal loan deals in different categories are ranked on RateCity’s Home Loan Leaderboards, with some of the top performers also becoming eligible for the RateCity Gold Awards.

(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.)

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